Electrotherm Q2 FY27 Results: Net Loss Widens Amidst Financial Woes
Electrotherm reported a Q2 FY27 standalone net loss of ₹19.93 crore vs. profit of ₹7.00 crore YoY. Consolidated net loss was ₹20.04 crore vs. profit of ₹6.88 crore. Significant financial challenges persist, including loan defaults and auditor qualifications on non-provisioned interest, understating losses. ED has frozen ₹25.08 crore. Mr. Shailesh Bhandari designated Executive Vice Chairman.
The announcement details a net loss, significant financial distress with loan defaults, and serious regulatory issues including asset attachment by the ED. These factors are critical and have a substantial impact on the company's financial health and operational stability.
The company reported a net loss for the quarter and half-year, a significant decline from the previous year's profit. The announcement also highlights substantial financial challenges, including loan defaults, auditor qualifications regarding unprovided interest, and regulatory actions by the Directorate of Enforcement, indicating a negative financial outlook.
Electrotherm (India) Limited announced its unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. The company's Board of Directors also approved the variation of powers for Mr. Shailesh Bhandari, designated as Executive Vice Chairman from November 4, 2026, subject to shareholder approval. A postal ballot notice will be issued to seek this approval.
The financial results reveal a net loss for the quarter ended September 30, 2026, of ₹19.93 crore on a standalone basis, compared to a net profit of ₹7.00 crore in the corresponding period last year. Consolidated net loss for the quarter was ₹20.04 crore, against a profit of ₹6.88 crore in the prior year.
The company faces significant financial challenges, including defaults on loan installments and interest payments to Invent Assets Securitization and Reconstruction Private Limited (Invent ARC) and potential reinstatement of dues under settlement agreements with ARCs. Furthermore, Indian Overseas Bank classified a loan account as NPA, with a judgment against the company for ₹189.96 crore. The statutory auditor has qualified the report due to non-provision of interest on this loan, leading to an understatement of net loss by ₹41.70 crore for the quarter and ₹82.16 crore for the half-year on a standalone basis. Consolidated figures show a similar non-provisioning, leading to an understatement of net loss by ₹52.42 crore for the quarter and ₹103.32 crore for the half-year.
Additionally, the Directorate of Enforcement (ED) has provisionally attached ₹25.08 crore from the company's bank accounts and frozen shares held by promoters due to ongoing investigations under the Prevention of Money Laundering Act, 2002. The company and its promoters are challenging these actions in court.
The company also completed the issuance of 6% Non-Cumulative Redeemable Preference Shares (NCRPS) worth ₹10.95 crore to existing preference shareholders, as approved by the NCLT, in lieu of unredeemed preference shares. A total of ₹1.05 crore was paid for the redemption of NCRPS to a non-consenting shareholder.
The Board meeting commenced at 02:45 p.m. and concluded at 04:30 p.m. on November 4, 2026.
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