What’s new

• Vaxfab board approved audited FY26 results with standalone net profit of ₹3.64 cr.
• Auditor Chandabhoy & Jassoobhoy issued a disclaimer of opinion on both standalone and consolidated results.
• Disclaimer cites inadequate books, missing confirmations, and unsecured loans without agreements.

Why it matters

For a nano-cap with a market cap of ₹151 cr and a high P/E of 41.4, an auditor disclaimer is a severe governance failure. The reported numbers cannot be relied upon, putting the company's growth story—89.9% revenue growth in the trailing period—into serious doubt. This could trigger regulatory scrutiny and investor backlash.

What we’re watching

• Whether management issues a restatement or provides additional explanations.
• Potential action from stock exchanges or SEBI given the severity of the disclaimer.
• Impact on the stock price and trading volumes in the coming sessions.

The full read

Vaxfab Enterprises' board approved its audited FY26 results, reporting a standalone net profit of ₹3.64 crore and a consolidated net loss of ₹4.63 crore. But the numbers come with a stark caveat: the company's auditor, Chandabhoy & Jassoobhoy, refused to sign off. The statutory auditor issued a disclaimer of opinion, citing inadequate books of account maintained by the previous management, missing balance confirmations from debtors and creditors, and unsecured loans that lacked formal agreements. Without reliable books, the auditor said it could not obtain sufficient evidence to vouch for the transactions. For a ₹151 crore market-cap company with trailing revenue growth of 89.9% and a P/E of 41.4, this disclaimer undermines the entire financial story. The reported profit may be technically there, but it is essentially unverified. This is not the first time Chandabhoy & Jassoobhoy has flagged issues with Vaxfab's accounts; it follows a similar disclaimer in prior coverage. The open question now is whether management can supply the missing documentation and restore credibility, or whether this will escalate into a regulatory red flag.

Primary source: BSE · NSE

What’s new

• Auditor Chandabhoy & Jassoobhoy issued a disclaimer on both standalone and consolidated FY26 results.
• Standalone PAT rose to ₹3.64 crore from ₹0.58 crore, while consolidated results show a ₹4.63 crore loss.
• Auditors cited inadequate bookkeeping, missing balance confirmations, and MSMED Act non-compliance.

Why it matters

A disclaimer of opinion is the most severe report an auditor can issue. It signals that the financial statements are essentially unverifiable, rendering the reported profit of ₹3.64 crore effectively meaningless. For a nano-cap, this lack of transparency poses a high risk to investor capital.

What we’re watching

• Whether the company moves to replace the auditor or fix record-keeping gaps.
• Any exchange inquiry regarding the compliance failures.
• Subsequent filings or management commentary on the disclaimer.

The full read

Vaxfab Enterprises reported a ₹3.64 crore standalone profit for FY26, climbing from the ₹0.58 crore reported one year prior. The numbers are worthless. Chandabhoy & Jassoobhoy issued a disclaimer of opinion on both the standalone and consolidated statements after failing to verify the company's underlying records. The auditors cited inadequate bookkeeping, missing balance confirmations from creditors, and a total non-compliance with MSMED Act requirements.

While the standalone profit grew, the consolidated entity recorded a ₹4.63 crore loss. A disclaimer of opinion for a company with a market cap of ₹126 crore is a severe red flag. It points toward material misstatements that make every reported metric unreliable. The question is no longer about earnings growth or operational recovery. It is about whether the company's financial statements possess any fundamental integrity at all.

Primary source: BSE · NSE