What’s new

• Standalone revenue plummeted from ₹133.37 cr to ₹40.53 cr in FY26.
• Auditor Jayesh Dadia & Associates issued a going-concern warning.
• Management cites West Asian export delays and liquidity issues for the performance.

Why it matters

A going-concern warning from an auditor is the most severe signal a company can receive. When combined with a revenue collapse of this magnitude, the company's claim of a post-rights-issue recovery faces a high burden of proof.

What we’re watching

• Whether the March 2026 rights issue provides enough liquidity to stabilize operations.
• Evidence of export recovery in the upcoming quarterly results.
• Any further auditor comments regarding the company's solvency.

The full read

Sadhana Nitro Chem’s FY26 results are a stark reversal of fortune. The company posted a standalone net loss of ₹87.31 crore, a sharp drop from the ₹5.22 crore profit recorded in the previous year. Revenue fell 70% to ₹40.53 crore, down from ₹133.37 crore in FY25. The most critical development is the auditor’s report from Jayesh Dadia & Associates, which includes an Emphasis of Matter paragraph regarding the company’s ability to continue as a going concern. Management attributes the decline to production and liquidity constraints exacerbated by export delays in West Asia. They claim that a rights issue completed in March 2026 has provided the necessary working capital to begin a recovery. However, the auditor’s warning suggests that the path to stability remains uncertain. The board has opted against a dividend for the year, reflecting the current financial strain.

Primary source: BSE · NSE