Amarnath Securities: liabilities rise to Rs 99.24 lakh

Amarnath Securities Limited reported total liabilities of Rs 99.24 lakh at September 30, 2026, up Rs 19.71 lakh from March 31, 2026, while total equity remained negative at Rs 72.13 lakh. Financial liabilities increased Rs 22.83 lakh to Rs 79.83 lakh, exceeding the Rs 3.12 lakh reduction in provisions.

What changed in Amarnath Securities' balance sheet?

Amarnath Securities' total liabilities rose to Rs 99.24 lakh at September 30, 2026 from Rs 79.53 lakh at March 31, 2026. Total assets increased to Rs 27.10 lakh from Rs 6.49 lakh, while total equity improved by Rs 0.91 lakh but remained negative at Rs 72.13 lakh. The company stated in its September results that its entire net worth had been eroded.

Financial liabilities accounted for the increase in liabilities, rising to Rs 79.83 lakh from Rs 57.00 lakh over the six-month period. Non-financial liabilities, consisting of provisions, decreased to Rs 19.41 lakh from Rs 22.53 lakh. The rise in financial liabilities was therefore larger than the decline in provisions, resulting in a Rs 19.71 lakh increase in total liabilities.

Equity share capital was unchanged at Rs 3.0002 crore at both September 30, 2026 and March 31, 2026. Other equity was negative Rs 3.7215 crore at September 30, compared with negative Rs 3.7306 crore at the previous year-end. The Rs 0.91 lakh movement corresponds with the half-year profit after tax reported for the period.

How did Amarnath Securities' assets and funding move?

Amarnath Securities' loans increased to Rs 20.89 lakh at September 30, 2026 from Rs 2.50 lakh at March 31, accounting for Rs 18.39 lakh of the Rs 20.61 lakh increase in total assets. Other financial assets of Rs 2.81 lakh and other receivables of Rs 0.62 lakh were also presented at September 30, while investments were unchanged at Rs 0.51 lakh.

Cash and cash equivalents were Rs 2.16 lakh in the September 30 balance sheet, down from Rs 3.48 lakh at March 31. The cash-flow statement recorded closing cash and bank equivalents of Rs 2.18 lakh, comprising Rs 2.12 lakh in current accounts and Rs 0.06 lakh of cash on hand. The filing therefore shows a Rs 0.02 lakh difference between the balance-sheet cash figure and the cash-flow closing figure.

Borrowings other than debt securities were Rs 78.55 lakh at September 30, while the March 31 balance sheet showed debt securities of Rs 55.95 lakh and no amount under borrowings. Other payables rose to Rs 1.27 lakh from Rs 1.05 lakh. The filing does not state whether the presentation change between debt securities and borrowings resulted from refinancing, settlement or reclassification.

Amarnath Securities operates in one segment, Finance and Investment, and did not provide segment reporting for September 2026. It also stated that it had no subsidiary or associate. The reported balance sheet is therefore for the standalone company rather than a consolidated group.

What does Amarnath Securities' cash flow show?

Amarnath Securities used Rs 23.70 lakh in operating activities during the half year ended September 30, 2026, compared with Rs 5.93 lakh generated from operations in the year ended March 31, 2026. The largest working-capital movement was the Rs 18.39 lakh increase in long-term and short-term loans and advances.

The half-year operating outflow also included Rs 3.11 lakh related to provisions, Rs 2.81 lakh in other financial and non-financial assets, and Rs 0.62 lakh in trade receivables. Profit before tax was Rs 0.91 lakh for the six months, but the listed working-capital movements exceeded that reported profit and resulted in negative operating cash flow.

Amarnath Securities received Rs 22.60 lakh from short-term and long-term borrowings during the half year and recorded finance cost of Rs 0.08 lakh. Net financing cash inflow was Rs 22.51 lakh, which partly offset the operating and investing outflows. Cash and cash equivalents declined by Rs 1.31 lakh from the opening balance of Rs 3.48 lakh, according to the cash-flow statement.

What were Amarnath Securities' earnings and audit review findings?

Amarnath Securities reported half-year profit after tax of Rs 0.91 lakh for the period ended September 30, 2026, compared with Rs 8.23 lakh in the corresponding prior-year period. Total income rose to Rs 21.87 lakh from Rs 19.04 lakh, but total expenses increased to Rs 20.96 lakh from Rs 7.77 lakh. Revenue from operations was nil in the current half year, against Rs 19.04 lakh a year earlier.

Other income was Rs 21.87 lakh in the half year ended September 30, 2026. The September-quarter results included Rs 6.87 lakh arising from the write-back of a loan amount payable to a related party, based on management's decision. The quarterly statement classified Rs 6.87 lakh as other income, while the accompanying note described it as revenue recognised during the quarter.

The statutory auditor issued a qualified conclusion on the September 2026 unaudited results dated November 14, 2026. The auditor said it had not received documents regarding Reserve Bank of India, or RBI, compliance and could not determine the possible effects. The auditor also said the company's liabilities appeared to have been compromised, based on recent developments and available information, and management had not clarified the details.

The auditor said agreements for loans and advances granted by Amarnath Securities had not been provided, preventing verification of their terms, interest income, impairment provisions and disclosures. Amarnath Securities said that, following a change in management, it had yet to make an application or intimation to the RBI seeking approval, and that the approval remained pending when the financial statements were signed.

Conclusion

Amarnath Securities' September 2026 financial statements show a rise in liabilities to Rs 99.24 lakh alongside a negative equity balance of Rs 72.13 lakh. Assets increased by Rs 20.61 lakh, led mainly by loans, but operating activities used Rs 23.70 lakh of cash as loans and advances expanded. The reported half-year profit of Rs 0.91 lakh narrowed, but did not eliminate, the equity deficit.

The next disclosed matters to watch are the pending RBI approval or intimation following the management change and the documents sought by the auditor for loans, advances, investments and liabilities. Separately, the company has proposed conversion of Rs 86.0591 lakh of loans into 396,586 shares on a provisional basis at Rs 21.70 per share; the final share count and post-issue holdings will be recalculated after the final issue price is determined.