Sibar Auto Parts reported a 21.8% rise in annual revenue to 26.94 crore for FY26, but net losses widened to 1.59 crore due to higher finance costs and depreciation. Auditors flagged outstanding MSME dues and a delay in regulatory filing compliance.
Sibar Auto Parts FY26 Revenue Grows, Net Loss Doubles
Revenue rose to 26.94 crore; Net Loss widened to 1.59 crore.
Reader Takeaway: Revenue growth is overshadowed by rising finance costs and concerns over unpaid MSME dues and regulatory delays.
What just happened
Sibar Auto Parts announced its standalone financial results for FY 2025-26. While the company achieved a 21.82% increase in revenue from operations to 26.94 crore, its bottom line weakened significantly. Net losses for the year stood at 1.59 crore, compared to a loss of 0.68 crore in the previous financial year. The company cited escalating financing costs and depreciation as the primary drivers of this performance decline.
Why this matters
Investors should focus on the company's profitability challenges and governance hurdles. The report highlights an inability to translate top-line growth into earnings, exacerbated by high interest burdens. Furthermore, audit observations regarding pending payments to MSMEs and a failure to meet mandatory SEBI secretarial compliance deadlines point to potential internal administrative strain.
Audit and Regulatory Observations
Statutory auditors highlighted 3.19 crore in outstanding dues to micro and small enterprises (MSMEs). Crucially, the company has not yet accounted for potential interest penalties associated with these delayed payments. Additionally, the company was penalized with a 43-day delay in submitting its mandatory secretarial compliance report, a direct breach of SEBI (LODR) regulations.
Corporate Governance
The board has proposed the re-appointment of Mr. Pemmasani Ravichandra as Managing Director for a three-year term starting August 2026. Meanwhile, Whole-Time Director Mr. Madhu Pratap Pemmasani is set for re-appointment following his scheduled retirement by rotation at the upcoming AGM.
What to track next
Watch for updates on interest provisions related to MSME dues and any further regulatory actions stemming from the compliance lapse. Future earnings reports will need to show a clear plan to de-leverage the balance sheet to stem recurring losses.