Hemo Organic Reports Rs 77.81 Lakh Loss for FY26, Faces Audit Qualifications

In the financial year ended March 31, 2026, Hemo Organic Limited reported a net loss of Rs. 77.81 lakh. This marks a significant downturn from a net profit of Rs. 16.39 lakh in the preceding fiscal year. Revenue from operations also saw a steep decline, falling to Rs. 92.90 lakh from Rs. 241.43 lakh in FY 2024-25. Consequently, the company's basic and diluted Earnings Per Share (EPS) turned negative at (Rs. 2.24), a contrast to Rs. 0.47 in the prior year.

What just happened

For the fiscal year 2025-26, Hemo Organic recorded a net loss of Rs. 77.81 lakh and a revenue drop to Rs. 92.90 lakh. The company's auditor issued a qualified opinion, citing a lack of necessary documentation for trade receivables and payables, and for inventory valuation.

Why this matters

The financial results indicate a challenging year for Hemo Organic, with a loss and reduced revenue. The qualified audit opinion raises concerns about the reliability of key financial data, potentially impacting investor confidence and the company's ability to access future funding.

The backstory

Hemo Organic operates primarily in the trading and distribution of agriculture commodities. The company has not reported any changes in the nature of its business during the fiscal year.

What changes now

The company has appointed new statutory auditors, M/s. V S S B & Associates, for a five-year term. It also approved a preferential issue of convertible warrants to non-promoter entities and has received a portion of the subscription amount. Separately, the registered office has been shifted within Ahmedabad, and one independent director resigned.

Risks to watch

Key risks include the company's ability to address the auditor's qualifications concerning trade receivables, payables, and inventory valuation. Failure to provide adequate documentation could lead to further scrutiny and potentially impact future financial reporting.

Peer comparison

[No peer comparison data available in the filing.]

Context metrics (time-bound)

• Financial Year 2025-26: Net loss of Rs. 77.81 lakh, Revenue of Rs. 92.90 lakh, EPS of (Rs. 2.24).
• Financial Year 2024-25: Net profit of Rs. 16.39 lakh, Revenue of Rs. 241.43 lakh, EPS of Rs. 0.47.

What to track next

Investors should closely monitor the company's efforts to rectify the audit qualifications and the progress of the preferential issue. Future financial reports will be crucial to assess the company's operational performance and financial health.