IMP Powers Ltd: ₹0.78 Cr Net Loss, Qualified Audit Opinion Amid Liquidation

IMP Powers Ltd reported a net loss of ₹0.78 crore (₹78.21 lakh standalone, ₹77.59 lakh consolidated) for the quarter ended June 30, 2026. Revenue stood at ₹38.78 crore.

Reader Takeaway: Significant financial reporting concerns coupled with ongoing liquidation proceedings and litigation create high uncertainty for investors.

What just happened

The company reported a net loss of ₹0.78 crore for the quarter ended June 30, 2026. Revenue from operations was ₹38.78 crore. A significant development is the qualified opinion issued by statutory auditors B J S and Associates on both standalone and consolidated financial results.

Why this matters

The qualified opinion raises red flags about the reliability of the company's financial statements. Key concerns raised by auditors include substantial unprovided expected credit losses on old trade receivables, lack of impairment assessment on assets despite production suspension, un-reconciled bank balances, and failure to recognize deferred tax assets/liabilities.

The backstory

IMP Powers Ltd is currently undergoing liquidation. The company's liquidator received ₹78 crore from a successful bidder for its sale as a going concern. However, the distribution of these proceeds is currently being challenged by STCI Finance Limited in the Supreme Court.

What changes now

Despite the liquidation process and auditor concerns, management is preparing the results on a going-concern basis, primarily justified by the ₹78 crore bid proceeds received. The company also re-appointed its Secretarial Auditor and Whole-time Director.

Risks to watch

The primary risks include the ongoing Supreme Court litigation over the distribution of sale proceeds and the systemic issues highlighted by the qualified auditor opinion, which point to potential overstatement of assets and unreliable financial reporting.

Peer comparison

Companies undergoing liquidation with significant auditor qualifications and ongoing legal disputes typically face extreme investor caution and valuation challenges. Performance metrics are secondary to the resolution of the liquidation process.

Context metrics (time-bound)

• Quarter Ended: June 30, 2026
• Revenue: ₹38.78 crore
• Net Loss (Consolidated): ₹0.78 crore
• Bid Proceeds Received: ₹78 crore

What to track next

Investors should closely monitor the Supreme Court proceedings regarding the distribution of sale proceeds. Any adverse ruling could significantly impact the company's financial settlement and stakeholder returns. The company's ability to resolve auditor-cited issues in future filings will also be crucial.