RLF Ltd’s FY 2026 annual report reveals a revenue decline to Rs 99.04 lakh and an increased net loss of Rs 31.60 lakh. The company faces a qualified auditor opinion regarding land valuation and disclosed a lingering TDS default. Shareholders are now asked to approve a Rs 10 crore fundraising plan via convertible loans from promoters, alongside new remuneration packages for leadership.
RLF Ltd FY 2026 Annual Report: Revenue Declines and Loss Widens
Revenue from operations fell to Rs 49.31 lakh from Rs 108.01 lakh; net loss grew to Rs 31.60 lakh from Rs 22.82 lakh.
Reader Takeaway: Widening losses and auditor concerns regarding land valuation create uncertainty despite proposed promoter-led capital infusion plans.
What just happened
RLF Ltd has published its 46th Annual Report for the fiscal year ended 2025-26. The filing confirms a contraction in business operations with total revenue dropping to Rs 99.04 lakh compared to Rs 154.85 lakh in the previous fiscal year. Consequently, the net loss for the year deepened to Rs 31.60 lakh, resulting in a negative Basic EPS of 0.33.
Why this matters
The company is signaling a capital-raising exercise to shore up its balance sheet. Management plans to raise up to Rs 10 crore via unsecured loans from promoters, Mr. Aditya Khanna and Mr. Ashish Khanna. These loans come with an option to convert debt into equity, which may lead to share dilution for existing investors once exercised.
Auditor and Governance Concerns
Statutory auditor M/s. R K Bhalla & Co. has issued a qualified opinion. The audit report highlights valuation uncertainties regarding a land parcel valued at Rs 4,007.48 lakh, citing potential restrictions related to green belts or road widening projects. Furthermore, the company has admitted to a long-standing TDS default of Rs 85,242, which remains outstanding for over two years.
What changes now
An Annual General Meeting (AGM) is set for September 30, 2026. Shareholders will vote on the proposed fundraising, executive remuneration of Rs 75,000 monthly for key management personnel, and related party transactions with SIPL Textile Private Limited and United Leasing & Industries Limited, capped at Rs 5 crore for each entity.
Risks to watch
Investors should monitor the resolution of the TDS default and the impact of the auditor’s qualification on the company’s asset valuation. The heavy reliance on promoter loans suggests a tight liquidity position, and the eventual conversion of these loans into equity will shift the company’s capital structure.
What to track next
Watch for the outcomes of the upcoming AGM and any subsequent disclosures regarding the regulatory compliance of the land valuation and the clearing of pending tax liabilities.