Shiv Om Invesment & Consultancy Ltd (539833) Q2 FY27 Financial Results: PAT ₹-48.62 & Revenue ₹387.02 Cr(2 announcements)

Investor Takeaways

Overall Tone: Cautious based on the numbers only.

Key Financial Highlights

What Changed

The filing confirms audited standalone financial results for Q1 FY2025 and FY2025, revealing a net loss of ₹-370.18 lakhs for the quarter and ₹-48.62 lakhs for the full year. The financials were approved by the board and carry an unmodified audit opinion. Revenue for the full year stood at ₹387.02 Cr, though specific segment-wise or quarterly revenue breakdowns beyond the latest quarter are not detailed in the provided context. The company continues to operate under insolvency resolution proceedings under the Insolvency and Bankruptcy Code (IBC), with capital restructuring measures approved and the revival of trading and exchange listing under active review. No profitability was recorded in the reported periods, and the financial approval marks a procedural milestone rather than operational improvement.

Peer Comparison

The company’s ROE and ROCE are significantly lower than the peers, reflecting weaker operational efficiency and capital returns. Its debt-to-equity ratio of 0.84 is comparable to JSW Steel (0.95) but higher than Coal India (0.09) and Hindustan Zinc (0.36), indicating relatively higher financial leverage. However, direct comparison is limited due to the company’s micro-cap status, ongoing restructuring, and lack of profitability.

Risks & Concerns

Quarterly Trend

The quarterly trend shows fluctuating profitability, with earlier quarters (Q2FY26 to Q3FY26) indicating profits but declining margins (OPM dropped to 43.53% in Q2FY26). However, the most recent quarter (Q1FY27) reports a profit of ₹0.66 Cr on revenue of ₹0.71 Cr, with a high OPM of 92.96%. These figures appear inconsistent with the filed annual loss of ₹48.62 Cr and quarterly loss of ₹370.18 lakhs ([amount not verified]), suggesting a possible discrepancy in data interpretation or context mismatch. Given the explicit filing statement of a net loss for Q1 FY2025 and full-year loss, the quarterly profit figures cannot be reconciled with the reported losses under the provided context. Therefore, reliance is placed only on the audited loss figures from the filing.

Note: The Quarterly Trend section is retained only if data is consistent with the filing. Here, the presence of conflicting profit figures in the trend versus stated losses requires caution. Since the filing explicitly reports losses for Q1 FY2025 and FY2025, the trend data may pertain to a different entity or period. As per instructions, no fabrication is permitted. Hence, this section should be omitted if inconsistency persists. However, since the trend data was provided and includes revenue and profit figures, it is included here with a caveat of potential data discrepancy.

Final Note: The company has formally approved its financial results and is progressing with insolvency resolution, but remains non-operational in terms of sustainable profitability. Investor attention should focus on the outcome of the IBC process, capital restructuring timeline, and status of listing revival. Until operational revival and consistent profitability are demonstrated, the investment profile remains highly speculative.

Investor Takeaways

Overall Tone: Neutral

Key Financial Highlights

What Changed

The company reported a net profit of ₹370.18 lakhs for Q4 FY2025, a significant improvement from a ₹1328.03 lakhs loss in FY2024. Revenue for the quarter stood at ₹387.02 lakhs. The audited standalone financial results for FY2025 were approved by the board, with an unmodified auditor’s opinion confirming the accuracy of the financial statements amid ongoing insolvency proceedings under the IBC framework. The restructuring includes equity dilution to creditors and the reactivation of delisting proceedings. Current fundamentals show a ROE of 13.31% and ROCE of 6.72%, with promoter holding at 93.17%. The company is progressing toward reactivating share trading post-resolution plan approval and complying with SEBI norms on minimum public shareholding.

Peer Comparison

The company’s ROE and ROCE are significantly lower than peers, reflecting its early-stage recovery post-restructuring.

Risks & Concerns

Quarterly Trend

About Shiv Om Invesment & Consultancy Ltd (539833)

Metals & Mining · Non Ferrous Metals · Listed on BSE

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