What’s new

• Annual net profit fell to just ₹0.67 lakh from ₹19.10 lakh in FY25.
• Full-year revenue declined 15.6% to ₹10.21 crore.
• The company recorded a net loss of ₹2.41 lakh during the second half of FY26.

Why it matters

For a company with a market cap of roughly ₹24 crore, a near-total wipeout of profitability is a critical failure. The transition to a half-year loss signals that the business model is struggling to sustain even base-level margins.

What we’re watching

• Whether the company can return to positive cash flow in the current fiscal year.
• Operational updates to see if the revenue decline is a temporary slump or a structural trend.
• Any management commentary explaining the sharp divergence in year-over-year earnings.

The full read

Scarnose International faces a grim reality after its latest audit. Annual net profit cratered 96.5% to a mere ₹0.67 lakh, down from ₹19.10 lakh in FY25. Top-line performance was equally weak, with revenue dropping 15.6% to ₹10.21 crore. Most telling is the performance in the second half of the year, which dragged the company into a net loss of ₹2.41 lakh. For a firm with a market capitalization of only ₹24 crore, this level of erosion is acute. While the board moved to appoint new internal and secretarial auditors, the routine nature of those hires does nothing to mask the underlying financial contraction. The audit received an unmodified opinion, but the numbers speak for themselves. The company is currently struggling to defend its bottom line.

Primary source: BSE · NSE