Shivam Autotech reported a net loss of ₹81.33 crore for FY 2025-26 as liquidity constraints hit production. The company is now seeking to raise capital through a planned Rights Issue and by converting promoter loans into equity. Investors should note auditor-flagged internal control gaps regarding inventory management, even as the firm signals a Q4 operational recovery.
Shivam Autotech Reports ₹81.33 Crore Net Loss for FY26
Revenue fell to ₹409.58 crore in FY26 compared to ₹453.98 crore in the previous year.
Reader Takeaway: Management is targeting a liquidity-led turnaround via a planned Rights Issue despite auditor-flagged inventory management concerns.
What just happened
Shivam Autotech has released its annual financial performance for FY 2025-26, reporting a net loss of ₹81.33 crore. This compares to a net loss of ₹48.04 crore in FY 2024-25. The company’s revenue from operations dropped to ₹409.58 crore from ₹453.98 crore the year prior. EBITDA also saw a contraction, falling to ₹31.80 crore from ₹44.41 crore, leading to an EBITDA margin of 7.76%.
Why this matters
The company faced severe working capital and liquidity constraints during the year, which directly restricted its production capacity. Management noted that these pressures began to ease in late 2025, with Q4 showing a 13.7% quarter-on-quarter revenue growth, suggesting a potential bottoming out of operational issues.
What changes now
To stabilize the balance sheet, the Board of Directors has proposed an increase in authorized share capital from ₹44 crore to ₹55 crore. This move is specifically designed to facilitate an upcoming Rights Issue. Additionally, the company intends to reduce leverage by converting existing unsecured loans provided by promoters into equity.
Risks to watch
Statutory auditors have issued a qualified opinion regarding internal financial controls. Specifically, they noted inefficiencies in material consumption booking and the reconciliation of legacy stock held with third parties as of March 31, 2026. While management has initiated physical verification to rectify these gaps, shareholders should monitor progress in strengthening these accounting and oversight processes.
Corporate governance
The Secretarial Audit highlighted delays in filing regulatory e-forms including DPT-3, MGT-15, and CHG-9. Management has attributed these lapses to technical issues on the Ministry of Corporate Affairs (MCA) portal and internal operational hurdles.