Naksh Precious Metals Reports FY26 Loss and Stake Sale Plan

Standalone Net Profit fell to a loss of Rs 37.58 lakh in FY26 compared to a Rs 45.25 lakh profit in FY25.
Revenue from operations declined to Rs 134.24 lakh from Rs 235.14 lakh in the previous fiscal year.

Reader Takeaway: Rising losses, divestment of subsidiary, and auditor concerns over cash verification present immediate governance and financial challenges.

What just happened

Naksh Precious Metals released its FY2025-26 Annual Report, announcing a shift in its registered office from Delhi to Nashik, Maharashtra. The company also confirmed a proposal to divest its 51% stake in its subsidiary, NAS Global Industries Private Limited. Additionally, the company is set to appoint M/s. Vadulekar and Associates as new statutory auditors for a five-year term.

Why this matters

The financial results show a sharp decline in performance, turning into a loss of Rs 37.58 lakh. Most concerning for shareholders is the auditor's inability to verify a cash-in-hand balance of Rs 164.98 lakh due to a lack of supporting documentation. This, combined with several compliance failures noted in the secretarial audit—such as missing UPSI entries and late filings—raises significant governance questions.

Governance and Compliance

The Secretarial Audit Report highlighted multiple lapses, including delays in website disclosures, failure to submit quarterly compliance reports, and non-filing of director appointment forms with the Ministry of Corporate Affairs. The Board has initiated corrective measures to strengthen its compliance framework.

What to track next

Investors should monitor the outcome of the Annual General Meeting on September 30, 2026, particularly regarding the approval for the subsidiary divestment and the progress on rectifying the highlighted compliance and auditing concerns.