Konark Synthetic Limited has announced its unaudited standalone financial results for the quarter and half-year ended September 30, 2026. The company detailed its revenue, expenses, and profit/loss figures for the period. Due to its subsidiary, India Denim Limited, being under Corporate Insolvency Resolution Process, consolidated financial results were not prepared.
Konark Synthetic Announces Unaudited Financial Results
Konark Synthetic Limited has disclosed its unaudited standalone financial results for the quarter and half-year ended September 30, 2026. The Board of Directors reviewed and approved these results during a meeting held on November 14, 2026.
Financial Performance Highlights
For the quarter ended September 30, 2026, the company reported a net loss after tax from continuing operations of ₹3.64 Lakhs. The total comprehensive income for the same period stood at ₹3.64 Lakhs. Basic and diluted earnings per share were (₹0.06).
For the half-year ended September 30, 2026, the net profit after tax from continuing operations was ₹3.36 Lakhs. Total comprehensive income for the half-year was ₹3.36 Lakhs. Basic and diluted earnings per share were ₹0.06.
Subsidiary Impact on Consolidated Results
The company noted that its subsidiary, India Denim Limited, is currently undergoing Corporate Insolvency Resolution Process. Consequently, the interim financial information for the subsidiary was not available, preventing Konark Synthetic from preparing consolidated financial results for the period. The company has already made full provision for its investment in this subsidiary.
Limited Review Report
The accompanying unaudited standalone financial results have been reviewed by M/s. Bhuwania & Agrawal Associates, Chartered Accountants, who have issued a Limited Review Report. Copies of both the financial results and the review report are enclosed with this announcement.
Key Balance Sheet Information
As of September 30, 2026, Konark Synthetic’s total assets amounted to ₹3,806.77 Lakhs, with equity and liabilities totalling the same amount. Key assets include inventories of ₹2,134.20 Lakhs and property, plant, and equipment valued at ₹132.15 Lakhs. The company’s equity share capital stood at ₹580.80 Lakhs, with other equity at (₹561.49) Lakhs.
Cash Flow Statement Insights
The cash flow statement for the half-year ended September 30, 2026, indicates a net cash outflow from operating activities of ₹0.82 Lakhs. The net cash outflow from investing activities was ₹0.51 Lakhs, primarily due to the purchase of fixed assets. Financing activities resulted in a net cash inflow of ₹35.40 Lakhs. The closing cash and cash equivalents were ₹44.80 Lakhs.
Auditor’s Observations
In their Independent Auditor’s Review Report, Bhuwania & Agrawal Associates highlighted long outstanding receivables of ₹711.18 Lakhs from Mudra Denims Private Limited, which is under Corporate Insolvency Resolution Process, with minimal probability of recovery. They also noted a corporate guarantee of ₹2706.00 Lakhs given by the company to bankers of its subsidiary, India Denim Limited, which is classified as NPA. The auditors stated that the probability of recovery of dues is minimal and that this contingent liability could have a material impact on the company’s financial position.
Source: BSE
