Add-Shop E-Retail profits plunge 68% as auditor raises red flags

Add-Shop E-Retail finished FY26 with net profit down 68% to ₹105.40 lakhs, even as its top line remained nearly flat at ₹15,520.40 lakhs. The numbers are the least of the company's worries. The auditor’s report creates a far bleaker picture, citing ₹23.22 crore in distribution commission expenses that the firm cannot verify. Compounding this, 72% of the company's revenue is now trapped in trade receivables. Add a pending SEBI show cause notice to the pile, and the financial health of this nano-cap retailer is in clear doubt. The board’s move to bring in M/s. Princy Mehta & Associates as internal auditor arrives as a defensive measure. However, an unmodified audit opinion provides little comfort when the underlying expense structure is effectively a black box. Investors are left with a business that struggles to convert sales into cash, all while under active regulatory scrutiny.