Newtrac Foods FY26: ₹6.37 Cr Net Loss, Auditor Issues Disclaimer of Opinion

Newtrac Foods reported a net loss of ₹6.37 crore for the fiscal year ended March 31, 2026. This marks a significant decline from a profit of ₹2.52 crore in the previous fiscal year. The fourth quarter (Q4 FY26) alone contributed to a net loss of ₹6.17 crore.

Reader Takeaway: Auditor disclaims opinion on financials; Management claims unmodified opinion, highlighting governance conflict.

What just happened

Newtrac Foods & Beverages Limited announced its audited financial results for the fiscal year ended March 31, 2026. The company reported a net loss of ₹6.37 crore. Additionally, the company disclosed a change in its statutory auditor, with NKSC & Co resigning and M/s Sarang Shivajirao Chavan and Associates appointed as the new auditor for FY 2026-2027.

Why this matters

The most critical development is the 'Disclaimer of Opinion' issued by the outgoing statutory auditor, NKSC & Co. This means the auditor could not gather enough evidence to form an opinion on the company's financial statements, highlighting potential issues with assets, liabilities, or transactions. Furthermore, a significant contradiction exists between the auditor's report and the Managing Director's declaration, which stated an 'unmodified opinion'. This discrepancy raises serious questions about corporate governance and transparency.

The backstory

In the previous fiscal year (FY25), Newtrac Foods had reported a profit before tax of ₹2.52 crore. The sharp deterioration in financial performance in FY26, coupled with serious audit qualifications, presents a stark contrast.

What changes now

M/s Sarang Shivajirao Chavan and Associates will take over as the new statutory auditor for FY 2026-2027. Investors will be closely watching the audit report for the current fiscal year for any signs of improved financial reporting and clarity.

Risks to watch

The primary risks for investors include the lack of verified financial data due to the auditor's disclaimer, potential inaccuracies in financial reporting, weak corporate governance, and the absence of a Company Secretary. A substantial write-off of ₹7.04 crore in FY26 also requires scrutiny.

Peer comparison

Information not available in the filing. However, companies in the food and beverage sector typically aim for profitability and clear financial reporting, which Newtrac Foods is currently struggling with.

Context metrics (time-bound)

• Revenue from operations (Q4 FY26): ₹2.95 crore
• Net Loss (Q4 FY26): ₹6.17 crore
• Net Loss (FY26): ₹6.37 crore
• Balance written off (FY26): ₹7.04 crore
• Total Assets (as at Mar 31, 2026): ₹18.35 crore

What to track next

Investors should closely monitor the company's future filings, particularly the next annual report and the auditor's opinion. Any steps taken to address the governance and compliance gaps, such as appointing a Company Secretary and ensuring clear audit trails, will be crucial.