Facor Alloys posts ₹14.8 cr loss, plans pivot to freight terminals
The ferro-alloys maker's plant has been shut since October 2023. Its auditor has flagged a going-concern warning.
What's new
- Facor Alloys reported a net loss of ₹14.80 crore for FY26, with revenue of just ₹1.47 crore.
- The auditor issued a material uncertainty note on the company's ability to continue as a going concern.
- The board proposed changing the company's MOA to include Gati Shakti Cargo Terminal operations.
Why this matters
This is the first full-year audit since the plant went dark in October 2023. The going-concern flag is the auditor's way of saying the numbers don't add up for survival without a dramatic change. The proposed pivot to cargo terminals, subject to shareholder approval, is that proposed change.
What we're watching
- Shareholder vote on the MOA amendment to allow the logistics pivot.
- Completion of the plant-and-machinery sale; an advance of ₹27.97 crore is already received.
- Whether the company can secure fresh capital or a partner for the new venture.
The full read
Facor Alloys' plant has been idle since October 2023. The first full audit of that shutdown, for FY26, shows a ₹14.80 crore net loss on just ₹1.47 crore in revenue. The auditor has issued a going-concern warning. The board's response is a proposed pivot to logistics, seeking shareholder approval to amend the MOA for Gati Shakti Cargo Terminal operations. An asset sale is also pending: the company holds a ₹27.97 crore advance for its plant and machinery, but the deal isn't done. The going-concern note frames the choice starkly. The old business is gone. The shareholder vote on the new one is the next event.
Questions answered
- Why did the auditor flag a going-concern uncertainty?
- The company's plant has been shut since October 2023, revenue fell to ₹1.47 crore, and it posted a ₹14.80 crore loss. The auditor concluded there is material uncertainty about the company's ability to continue operating without a significant change in its fortunes.
- What is the proposed change in business direction?
- The board wants to amend the company's memorandum of association to include developing and operating freight terminals under the government's Gati Shakti Cargo Terminal policy. The change requires shareholder approval.
- What is the status of the plant sale?
- The company has received an advance of ₹27.97 crore for the sale of its plant and machinery, but the transaction has not yet been completed.