Shree Narmada Aluminium Industries reported a net loss of Rs 6.84 million for FY 2025-26 as operations remain suspended. The company, which has seen no turnover since 2016, faces auditor concerns over eroded net worth and potential new legal battles following the termination of a property sale agreement.
Shree Narmada Aluminium Reports FY26 Loss Amid Operational Stagnation
Net loss of Rs 6.84 million for FY 2025-26; Revenue remains at zero.
Reader Takeaway: Creditor settlement offers a minor reprieve, but legal threats and total net worth erosion remain severe constraints.
What just happened
Shree Narmada Aluminium Industries Ltd has released its financial results for the year ended March 31, 2026. The company reported a net loss of Rs 6.84 million, a significant reversal from the Rs 2.35 million profit recorded in the previous fiscal year. Total revenue for the year stood at zero, while expenses climbed to Rs 6.84 million.
Why this matters
The company’s statutory auditor, SVH & Associates, has issued a qualified opinion. They highlighted that the firm’s net worth is completely eroded, casting material uncertainty on its ability to continue as a going concern. While management insists the business remains viable, the lack of operational activity since FY 2016-17 underscores the severity of the distress.
Legal and Property Disputes
Following an August 2025 Supreme Court order, the company settled a long-standing dispute with Kotak Mahindra Bank regarding a 2008 Scheme of Arrangement. However, new complications have emerged. The company recently terminated a 2014 property sale agreement with Samrat Assets Allied Industries Pvt. Ltd., alleging breach of contract. The counterparty has disputed this termination and signaled an intent to initiate both civil and criminal legal proceedings against the company.
Risks to watch
Investors should note that the company’s equity shares remain suspended from trading on the BSE. Furthermore, the firm has operated without a permanent Company Secretary since May 2025, raising concerns about corporate governance. The pending litigation over the Bharuch property assets adds a layer of unpredictable financial and operational risk.
What to track next
Watch for updates on the potential legal action from Samrat Assets Allied Industries and any further communications regarding the lifting of the BSE trading suspension. The company’s ability to generate future revenue remains the primary hurdle for stakeholders.