Akshar Spintex Limited reported a widened net loss of Rs 7.39 crore for FY 2025-26, compared to a Rs 4.45 crore loss in the previous year. Revenue remained nearly flat at Rs 117.28 crore. The earnings report is marked by critical auditor qualifications regarding inventory verification and the company's going concern status. Furthermore, the company faces multiple governance lapses, including a long-standing vacancy in the internal auditor position and past board non-compliance with SEBI regulations.
Akshar Spintex Reports Wider Loss and Auditor Qualifications
Net Loss widened to Rs 7.39 crore for FY 2025-26 from Rs 4.45 crore in FY 2024-25.
Revenue from operations remained stagnant at Rs 117.28 crore against Rs 116.77 crore in the previous year.
Reader Takeaway: Financial losses have deepened amid governance gaps and critical concerns raised by the company's statutory auditors.
What just happened
Akshar Spintex released its annual results for FY 2025-26, showing a decline in profitability despite stable revenue. The company cited global cotton price volatility and poor international demand as key headwinds for the period. The report highlights several critical compliance and operational issues, ranging from the failure to appoint an internal auditor since August 2022 to the lack of physical inventory verification.
Why this matters
The auditor's inability to verify inventory or confirm the company's status as a 'going concern' creates significant uncertainty for stakeholders. Coupled with past failures to meet regulatory filing requirements and board composition standards, these disclosures indicate potential internal control weaknesses that investors should monitor closely.
What changes now
The company is set to hold its 13th Annual General Meeting on September 28, 2026. The board is proposing a change in statutory auditors, moving to M/s. H. Jamnadas & Company. Additionally, shareholders will vote on executive remuneration packages for directors, following a previously failed postal ballot attempt.
Governance and Compliance Lapses
- No internal auditor appointed since August 2022.
- Failure to file quarterly financial results under the designated BSE tab for December 2025.
- Board composition failed to meet the minimum six-director requirement under SEBI LODR between November 2025 and February 2026.
- Pending statutory dues include professional tax payments and a disputed income tax demand of Rs 1.19 crore.
What to track next
Investors should watch for the outcome of the upcoming AGM, particularly the resolutions concerning auditor replacement and director compensation. Market participants will also track whether the management can stabilize operations and address the pending tax disputes and internal governance gaps mentioned in the latest audit report.