Naksh Precious Metals Ltd. Reports FY26 Net Loss Amid Auditor Scrutiny

Naksh Precious Metals Ltd. reported a net loss of ₹0.38 crore for the financial year ended March 31, 2026. This marks a significant shift from a profit of ₹0.45 crore in the previous fiscal year.

Reader Takeaway: Net loss reported; auditor raises governance concern over cash verification.

What just happened

Naksh Precious Metals Ltd. has announced its financial results for the fiscal year ended March 31, 2026. The company reported a consolidated net loss of ₹0.3740 crore (₹-37.40 lakh) and a standalone net loss of ₹0.3758 crore (₹-37.58 lakh). This is a reversal from the profit of ₹0.4525 crore recorded in FY 2025. Revenue from operations also saw a decline, falling to ₹13.42 crore in FY 2026 from ₹23.51 crore in FY 2025.

Why this matters

The shift to a net loss is a crucial indicator of the company's declining financial performance. More significantly, the auditors have flagged a 'Key Audit Matter' concerning the verification of the company's cash-in-hand balance, which stood at ₹1.6498 crore (₹164.98 lakh) as of March 31, 2026. The auditors stated they could not verify the physical cash due to a lack of supporting documents like withdrawal slips or physical verification reports, raising governance concerns.

The backstory

In the previous fiscal year (FY 2025), Naksh Precious Metals had reported a profit. However, FY 2026 has seen a downturn in both revenue and profitability. The company is also expanding its operations by incorporating a new subsidiary, NAS Global Industries Private Limited, on June 9, 2025, holding a 51% stake.

What changes now

Investors will need to closely monitor how the management addresses the auditor's concerns regarding the cash-in-hand verification. Any further clarification or remedial action taken by the company will be crucial for assessing its internal financial controls and the accuracy of its reported assets.

Risks to watch

The primary risk for investors is the governance issue highlighted by the auditors. The inability to verify significant cash assets raises questions about the robustness of the company's financial reporting and internal controls. The continued financial losses also pose a risk to future profitability and shareholder value.

Auditor and Governance Note

The auditors specifically mentioned the 'Key Audit Matter' relating to the ₹1.6498 crore cash-in-hand balance. They noted that while a cash certificate was provided, physical verification or sufficient supporting documentation was absent. This is a critical point for investors to consider regarding asset valuation and financial transparency.

Subsidiary Development

The incorporation of NAS Global Industries Private Limited means its financial performance will now be consolidated into Naksh Precious Metals' results, potentially impacting future financial statements.