IMP Powers Reports Turnaround Profit of Rs 0.11 Crore in FY 2025-26

IMP Powers Limited has achieved a profit of Rs 0.11 crore for FY 2025-26, compared to a loss of Rs 4.80 crore in FY 2024-25. Revenue from operations surged to Rs 31.38 crore, up significantly from Rs 1.53 crore in the previous year.

Reader Takeaway: The company has successfully returned to profitability post-revival, but persistent auditor concerns over asset valuation and legal risks remain.

What just happened

IMP Powers has emerged from its liquidation process, reporting positive bottom-line figures in its audited FY 2025-26 results. The company is now in a revival phase as it attempts to scale manufacturing operations.

Why this matters

The transition from liquidation to profit is a critical milestone. However, the Independent Auditor's Report highlights significant qualifications, including the absence of impairment assessments on assets and the lack of Expected Credit Loss (ECL) recognition on Rs 39.86 crore in long-standing trade receivables. These factors suggest potential balance sheet volatility.

The backstory

The company recently underwent a Corporate Insolvency Resolution Process (CIRP). It is currently embroiled in litigation with STCI Finance Ltd. at the Supreme Court regarding the distribution of sale proceeds, though management maintains there is no adverse financial impact beyond legal costs.

Risks to watch

Investors should monitor the ongoing Supreme Court proceedings and the resolution of auditor-flagged unreconciled balances in bank accounts and current assets. Additionally, the company faces operational challenges related to raw material price volatility and tight working capital.

What to track next

The management is currently working to appoint a CFO and Company Secretary to stabilize internal reporting. Shareholders will also vote on the proposed relocation of the registered office from Silvassa to Ahmedabad.