Sreechem swings to Q4 profit, but FY26 still a loss
A ₹1.05 crore March-quarter profit flips the result from a ₹0.55 crore loss. The full-year net loss narrowed only to ₹0.23 crore as revenue shrank.
What's new
- Q4 net profit of ₹1.05 crore, versus a ₹0.55 crore loss in the previous quarter.
- FY26 net loss narrowed to ₹0.23 crore from ₹0.30 crore in FY25.
- Total annual income fell to ₹30.04 crore from ₹35.67 crore.
Why this matters
The quarterly profit is a welcome shift for a nano-cap, but the full-year results show a smaller business. Annual revenue fell 16%, and the loss, while narrower, persisted. The Q4 swing is a positive data point; the annual trajectory is the real story.
What we're watching
- Whether the Q4 profit translates into a sustained run into FY27.
- The cause of the full-year revenue drop and if it has stabilised.
- Management commentary on the drivers of the quarterly turnaround.
The full read
Sreechem Resins posted a ₹1.05 crore net profit in the March quarter, reversing a ₹0.55 crore loss three months earlier. For a nano-cap with a ₹14 crore market capitalisation, the swing is notable. But the full-year numbers cut the other way. Revenue slipped to ₹30.04 crore from ₹35.67 crore, and the company still posted a net loss of ₹0.23 crore for FY26, only a modest improvement from FY25's ₹0.30 crore loss. The quarterly profit is a bright spot. The annual loss, inside a shrinking top line, is the enduring condition.
Questions answered
- How large was the quarterly swing in profit?
- Sreechem moved from a net loss of ₹0.55 crore in Q3 to a net profit of ₹1.05 crore in Q4. For a company with a ₹14 crore market capitalisation, this is a significant sequential move.
- Why does the full-year result still show a loss?
- Total income for FY26 declined to ₹30.04 crore from ₹35.67 crore in FY25. Even with the Q4 profit, the shrinking revenue base left the company with a net loss of ₹0.23 crore for the full year.
- What did the auditors say about the results?
- The auditors issued an unmodified opinion on the FY26 financial statements. This means they found no material qualifications or going-concern issues.
- What is the context for these numbers?
- Sreechem is a nano-cap company with a market capitalisation of ₹14 crore. For a business this size, quarterly results can swing dramatically, making the annual trend more important than any single quarter.