Mohit Industries Reports Q2 Loss Amid Auditor Qualification

Revenue stood at Rs 28.31 crore for the September quarter. Net loss for the same period was Rs 0.35 crore.

Reader Takeaway: Persistent operational losses and a flagged auditor qualification regarding Ind AS 19 compliance remain key investor concerns.

What just happened

Mohit Industries released its standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. The company reported a net loss of Rs 0.35 crore on a standalone basis, with revenue from operations reaching Rs 28.31 crore. On a consolidated basis, the loss for the quarter was Rs 0.37 crore.

Why this matters

The statutory auditor, Rajendra Sharma & Associates, issued a qualified limited review report. The auditor noted that the company is not providing for post-employment and other long-term employee benefits on an accrual basis, which deviates from Ind AS 19 accounting standards. The auditor stated that the profit for the period would have been further reduced had this provision been made, though the exact quantum remains unverified due to the lack of an actuarial report.

Management Commentary

In its notes to the financial results, the board stated that the required provision for these benefits is negligible. Consequently, the company has opted to account for these benefits on a cash basis—only as they become due—rather than creating an accounting provision in its current financial statements. Management maintains that this approach does not have a material impact on the company's overall financial position.

Risks to watch

The company cited ongoing cost pressures driven by elevated crude oil prices and broader geopolitical conflicts. These external factors are currently impacting raw material procurement and bottom-line performance. Investors should closely watch for any shift in the company’s accounting policy in future quarters or further communication from the board regarding the auditor's qualification.