Olympic Cards FY26: Annual Loss Narrows Amid Quarterly Slump and Auditor Concerns

Olympic Cards Ltd announced its financial results for the fiscal year ending March 31, 2026. The company reported annual standalone revenue of ₹12.76 Cr, a 32.51% increase from ₹9.63 Cr in the previous year.

The annual net loss significantly narrowed to ₹0.26 Cr (₹25.94 Lakhs) from ₹4.39 Cr in FY25.

However, this annual improvement contrasts sharply with the latest quarter (Q4 FY26). Standalone revenue for the three months ended March 31, 2026, fell 35.09% year-on-year to ₹1.94 Cr (₹194.22 Lakhs), from ₹2.99 Cr in Q4 FY25. The company posted a net loss of ₹1.55 Cr (₹154.99 Lakhs) for the quarter.

Major Auditor Concerns

The company's financial reporting faces serious scrutiny from its statutory auditors, who issued a qualified audit opinion. This means the auditors could not verify certain financial information, raising questions about the accuracy of the reported figures.

The qualification stems from the inability to obtain direct confirmations for significant balances like trade receivables and payables. This points to potential weaknesses in record-keeping and internal controls.

Further concerns include substantial unpaid statutory dues, particularly ₹2.92 Cr in GST owed from the 2018-19 period. Outstanding EPF and ESI payments also highlight ongoing compliance and cash flow issues.

Financial Fragility and Risks

Olympic Cards operates with extremely high leverage. Borrowings stood at ₹13.82 Cr against a net worth of just ₹1.05 Cr as of March 31, 2026. This substantial debt load makes the company financially fragile and vulnerable to economic downturns or interest rate changes.

The qualified audit opinion erodes confidence in the company's reported performance. The long-standing unpaid GST dues present a persistent liability that could lead to penalties and impact operations.

A critical internal control weakness noted by auditors is the absence of accounting software with an audit trail. This indicates fundamental issues in financial record integrity.

Company Background

Olympic Cards Ltd operates in the paper and packaging sector, producing paper boards and corrugated boxes. The company has faced financial difficulties in recent years, as seen in its prior annual losses before the current year's narrowing.

Peer Context

Compared to established paper sector players like JK Paper and West Coast Paper Mills, which focus on expansion, Olympic Cards is battling core solvency and compliance problems. These challenges limit its ability to compete effectively or attract investment.

Key Metrics

• Annual Standalone Revenue FY26: ₹12.76 Cr (up 32.51% from ₹9.63 Cr FY25)
• Annual Standalone Net Loss FY26: ₹0.26 Cr (down from ₹4.39 Cr FY25)
• Quarterly Standalone Revenue Q4 FY26: ₹1.94 Cr (down 35.09% from ₹2.99 Cr Q4 FY25)
• Total Borrowings (March 31, 2026): ₹13.82 Cr
• Net Worth (March 31, 2026): ₹1.05 Cr
• Unpaid GST Dues (March 31, 2026): ₹2.92 Cr (for 2018-19)

Looking Ahead

Investors will watch management's plans to address the issues causing the qualified audit opinion. Key items include steps to clear outstanding GST, EPF, and ESI dues, and strategies to reduce debt and improve solvency. The company's progress in adopting modern accounting software with an audit trail will also be monitored, alongside future quarterly results to assess revenue trends and recurring losses.