Add-Shop E-Retail profits drop 68% as auditor flags SEBI probe

Add-Shop E-Retail’s FY26 results show a business losing control of its bottom line. Revenue remained flat at ₹15,520.40 lakhs, yet net profit tumbled 68% to ₹105.40 lakhs, pointing to severe margin compression. More alarming than the thinning profits are the auditor’s notes. Trade receivables now account for 72% of annual revenue, a massive sum for a nano-cap retailer. Even worse, the auditor flagged distribution commissions as unverifiable. Layer onto this an active interim order and show cause notice from SEBI, and the picture shifts from a routine earnings report to a governance crisis. The numbers alone suggest operational strain, but the regulatory entanglement suggests deeper trouble. For a company with a market cap of just ₹20 crores, the open question is how much of that receivable balance is actually collectable.