Board approves Q2/H1 results; auditor flags going-concern doubt, cash loss of ₹2155.64 lakhs
Board of Directors, at its meeting on November 05, 2026, considered and approved the unaudited financial results for the quarter and half year ended September 30, 2026, recommended by the Audit Committee.
By ScoutQuest · · 2 min read
| Line item | Latest | Year ago | YoY | Prev qtr | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 2,505.09 | 2,121.71 | +18.1% | 2,660.07 | −5.8% |
| Total income | 2,619.48 | 2,245.51 | +16.7% | 2,792.57 | −6.2% |
| Profit before tax | (1,280.15) | 8,104.26 | — | (1,106.50) | −15.7% |
| Profit after tax | (1,280.15) | 8,104.26 | — | (1,106.50) | −15.7% |
| Total comprehensive income | (1,280.15) | 8,104.26 | — | (1,106.50) | −15.7% |
| Basic EPS | (0.69) | 5.24 | — | (0.60) | −15% |
- Total income YoY change
- +16.7%
- Period
- Quarter ended 30.09.2026 (Unaudited)*
Auditor's review
Conclusion: Unmodified
- Material uncertainty related to going concern: cash loss of ₹2155.64 lakhs in H1, negative net worth of ₹10,085.14 lakhs, current liabilities exceed current assets by ₹8,336.52 lakhs.
- Company has received a notice under the IBC, 2016 from an operational creditor (Note 9); conclusion not modified in respect of this matter.
Notes to the results
- Exceptional item of 9,540.00 lakhs in quarter ended Sep 30, 2025: waiver of inter-corporate deposits and accrued interest by related and non-related parties.
- Cash loss of ₹2,155.64 lakhs for the period and negative net worth of ₹10,085.14 lakhs; results prepared on going concern basis, supported by proposed Rights Issue up to ₹5,500 lacs.
- Operational creditor Koncepts Interior shared insolvency application before NCLT Mumbai for alleged claim of ₹107 Lakhs; matter pending hearing.
- GSTAT order dated October 14, 2026 directs Company to pass on/deposit profiteered amount of ₹367.88 lacs with 18% interest; treated as contingent liability.
What the board approved
- The Board of Directors of Praxis Home Retail Ltd met on Thursday, November 05, 2026, and considered and approved the unaudited financial results for the quarter and half year ended September 30, 2026.
- The results were recommended by the Audit Committee and are accompanied by the Limited Review Report issued by the statutory auditors, Singhi & Co., Chartered Accountants.
- The meeting commenced at 16:30 hours (IST) and concluded at 18:01 hours (IST).
What a Limited Review Report is
A review is narrower than a full audit. The auditor makes inquiries and applies analytical procedures, and gives a conclusion rather than an audit opinion. Here the auditor states that the conclusion is not modified.
What the auditor drew attention to
The report carries a section titled "Material Uncertainty Related to Going Concern", pointing to Note 4 of the statement. The conditions flagged are:
- The Company incurred a cash loss of ₹2155.64 lakhs during the half year ended September 30, 2026.
- As of that date, the Company's net worth is negative, amounting to ₹10,085.14 lakhs.
- The Company's current liabilities exceeded its current assets by ₹8,336.52 lakhs.
- The Company has received a notice under the Insolvency and Bankruptcy Code, 2016 from an operational creditor.
The auditor states that these conditions, along with other matters in that note, indicate a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.
Why the accounts are still prepared on a going-concern basis
The auditor notes that the statement has been prepared on a going concern basis, based on management's assessment of the Company's ability to meet its obligations.
What these terms mean for a reader
- A going-concern paragraph is a flag, not a shutdown notice. It tells the reader that continuing to operate normally depends on future events, such as meeting obligations as they fall due.
- Negative net worth means, on the books, liabilities exceed assets.
- Current liabilities above current assets means short-term dues are larger than short-term resources — a liquidity signal to watch.
- An operational creditor's notice under the Insolvency and Bankruptcy Code, 2016 is a formal demand from a party the company owes money for goods or services; the update notes it is explained in Note 9 to the statement.
The key takeaway
The board approval of results is routine. The substance for a retail reader is the auditor's going-concern paragraph, with the figures above, which quantifies the stress on the balance sheet and the reported cash loss for the half year.
Also from Praxis Home Retail
Unsecured inter-corporate loan of Rs. 2 crore at 13% per annum for 3 months
27 Oct 2026
GST Appellate Tribunal directs passing on or deposit of ₹3.68 crore profiteered amount with 18% interest
15 Oct 2026
Board Meeting on November 5 to Consider and Approve Unaudited Results for Q2 and H1
8 Oct 2026
More numbers
- Cash loss for half year ended September 30, 2026₹2155.64 lakhs
- Net worth (negative)₹10,085.14 lakhs
- Current liabilities in excess of current assets₹8,336.52 lakhs
- Total income, latest quarter2,619.48 (₹ in Lakhs)
- Total income, year-ago quarter2,245.51 (₹ in Lakhs)
- Total income, previous quarter2,792.57 (₹ in Lakhs)
- Total comprehensive income, latest quarter(1,280.15) (₹ in Lakhs)
- Total comprehensive income, year-ago quarter8,104.26 (₹ in Lakhs)
- Total comprehensive income, previous quarter(1,106.50) (₹ in Lakhs)
- Profit after tax, latest quarter(1,280.15) (₹ in Lakhs)
- Profit after tax, year-ago quarter8,104.26 (₹ in Lakhs)
- Profit after tax, previous quarter(1,106.50) (₹ in Lakhs)
- Revenue from operations, latest quarter2,505.09 (₹ in Lakhs)
- Revenue from operations, year-ago quarter2,121.71 (₹ in Lakhs)
- Revenue from operations, previous quarter2,660.07 (₹ in Lakhs)
- Profit before tax, latest quarter(1,280.15) (₹ in Lakhs)
- Profit before tax, year-ago quarter8,104.26 (₹ in Lakhs)
- Profit before tax, previous quarter(1,106.50) (₹ in Lakhs)
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