Galaxy Supermarket swings to profit, but auditors flag solvency risks

What's new with Galaxy Supermarket Ltd.

• Revenue reached ₹11.85 cr as the firm moved from cloud kitchens to retail.
• Auditors issued a going-concern warning due to a negative net worth of ₹68.02 cr.
• The profit includes ₹1.36 cr from debt write-backs and interest waivers.

Why this matters for Galaxy Supermarket Ltd.

The company’s turnaround relies on accounting adjustments rather than core cash flow. With current liabilities at ₹29.84 cr exceeding assets by three times, the firm faces a clear risk of insolvency.

What we're watching

• Whether retail operations can generate positive cash flow without related-party waivers.
• Updates on the status of the auditor's going-concern qualification.
• Plans for addressing the ₹68.02 cr net worth deficit.

The full read

Galaxy Supermarket shifted its focus from cloud kitchens to supermarket retail, resulting in a quarterly revenue of ₹11.85 crore. This change moved the firm to a net profit of ₹1.67 crore for the March 2026 quarter, against a loss of ₹0.89 crore in the prior year. The annual profit reached ₹1.52 crore. Behind these numbers, the firm's balance sheet remains broken. The net worth is negative ₹68.02 crore. Current liabilities of ₹29.84 crore dwarf current assets of ₹8.96 crore. Auditors warned that these conditions create uncertainty about the firm's survival as a going concern. The earnings also include ₹1.36 crore gained from writing back unclaimed creditors and an interest waiver from a related party. These one-time gains helped the bottom line, but they do not replace the need for operational cash flow. The company's survival hinges on whether retail operations can cover these debts.