What’s new

• Audited net loss of Rs 325.29 lakhs for FY2026; net worth is negative Rs 1,050.67 lakhs.
• Statutory auditors qualified their opinion on going-concern uncertainty for the seventh year in a row.
• Total liabilities of Rs 2,139.07 lakhs exceed total assets of Rs 1,088.39 lakhs.

Why it matters

Seven straight years of going-concern warnings from auditors is a pattern, not a blip. The company sold its entire stake in SPMM Health Care for Rs 228.80 lakhs during the year, a cash inflow that did not come close to covering the Rs 325.29 lakh annual loss. For a nano-cap with a Rs 15 crore market value, a balance sheet this broken raises the question of why it remains listed.

What we’re watching

• Whether lenders or regulators initiate restructuring or default proceedings.
• Any further asset sales to generate liquidity.
• Whether auditors can sign another going-concern report next year.

The full read

Kandagiri Spinning Mills posted a Rs 325.29 lakh loss for FY2026. Its auditors, for the seventh consecutive year, qualified the report with a going-concern warning. The numbers behind that warning are stark: liabilities of Rs 2,139.07 lakhs against assets of Rs 1,088.39 lakhs, leaving net worth at negative Rs 1,050.67 lakhs. The company is technically insolvent. During the year it sold its entire stake in SPMM Health Care Private Limited for Rs 228.80 lakhs, a cash inflow that did not come close to covering the annual loss. For a nano-cap with a Rs 15 crore market value, a loss this size and a balance sheet this broken leave viability as the central question.

Primary source: BSE · NSE