Rathi Bars Limited has announced its un-audited standalone financial results for the half year and quarter ended September 30, 2026. The company reported a net loss of ₹1,138.25 lakhs for the quarter and ₹1,138.25 lakhs for the half year. The auditor’s report highlights material uncertainty regarding the company’s ability to continue as a going concern due to ongoing litigation and unpaid debts.
Rathi Bars Limited Announces Q2 FY27 Financial Results
Rathi Bars Limited has disclosed its un-audited standalone financial results for the quarter and half year ended September 30, 2026. The company experienced a significant net loss of ₹1,138.25 lakhs for the quarter and also reported a net loss of ₹1,138.25 lakhs for the same period of the previous year. For the half year ended September 30, 2026, the net loss stood at ₹1,138.25 lakhs, a notable increase from the profit of ₹97.00 lakhs recorded in the corresponding period of the prior year.
Financial Performance Details
Total revenue from operations for the quarter ended September 30, 2026, was reported at ₹1.50 lakhs, a substantial decrease from ₹12,559.83 lakhs in the previous year’s quarter. Similarly, revenue for the half year decreased to ₹1.50 lakhs from ₹25,843.38 lakhs year-on-year. The company incurred significant expenses, leading to a net profit loss before tax of ₹1,138.25 lakhs for the quarter and half year. The total comprehensive income for the quarter and half year also reflected a loss of ₹1,138.25 lakhs each.
Auditor’s Concerns and Going Concern
The limited review report by Masar & Co. highlights several critical issues that cast doubt on the company’s ability to continue as a going concern. These include ₹60.08 crore cash credit facilities from Axis Bank and ₹19.68 crore from Yes Bank, along with a ₹4.07 crore term loan from HDFC Bank, which have been classified as Non-Performing Assets (NPA). Additionally, ₹64.21 crore is outstanding towards TREDS financiers and is under litigation. The report also mentions the temporary suspension of manufacturing operations due to various factors, including income-tax search proceedings and increased power tariffs, indicating material uncertainty about the company’s future operations.
Provision for Bad Debts
Rathi Bars Limited has recognized a provision for bad and doubtful debts amounting to ₹9.96 crore during the quarter, representing 13.27% of disputed trade receivables. The cumulative provision stands at approximately 34% of these receivables. The auditors were unable to determine the adequacy of this provision due to insufficient evidence, impacting the financial results.
Source: BSE
