Nivaka Fashions Limited narrows September loss to Rs 12.40 lakh

Nivaka Fashions Limited reported a net loss of Rs 12.40 lakh for the quarter ended 30 September 2026, narrowing from Rs 59.47 lakh a year earlier as total expenses fell to Rs 12.52 lakh from Rs 63.91 lakh. Total income from operations was nil, compared with Rs 4.28 lakh in the corresponding quarter.

Why did Nivaka Fashions report a smaller September-quarter loss?

Nivaka Fashions reported a smaller loss because its expenses declined more than its already limited income, with the post-tax loss falling to Rs 12.40 lakh in the quarter ended 30 September 2026 from Rs 59.47 lakh in the quarter ended 30 September 2025. The loss also narrowed from Rs 15.05 lakh in the preceding quarter ended 30 June 2026.

The company recorded no revenue from operations and no other operating income in the September 2026 quarter. This compared with other operating income of Rs 4.28 lakh in September 2025 and Rs 1.25 lakh in June 2026. The lower loss therefore coincided with nil reported quarterly income rather than a resumption of revenue from operations.

Basic and diluted loss per share, which was not annualised, was Rs 0.01 for the September 2026 quarter, compared with Rs 0.06 a year earlier. Paid-up equity share capital was unchanged at Rs 10.269 crore, with a face value of Rs 1 per share. The company reported no exceptional or extraordinary items for the quarter.

Which costs changed at Nivaka Fashions during the September quarter?

Nivaka Fashions reduced total expenses by Rs 51.39 lakh year on year, taking the quarterly total to Rs 12.52 lakh in September 2026 from Rs 63.91 lakh in September 2025. Expenses were also lower than Rs 16.41 lakh in the June 2026 quarter.

Employee benefits expense was Rs 8.24 lakh, down from Rs 17.76 lakh a year earlier and Rs 10.21 lakh in June 2026. Other expenses declined to Rs 2.13 lakh from Rs 25.44 lakh in September 2025 and Rs 3.18 lakh in the preceding quarter. Finance cost fell to Rs 1.39 lakh from Rs 4.26 lakh, while depreciation and amortisation was Rs 0.75 lakh against Rs 16.47 lakh.

The company reported no cost of materials consumed and no inventory-change charge in the September 2026 quarter. Purchase of stock-in-trade was also nil, compared with Rs 0.10 lakh in June 2026 and a negative Rs 0.02 lakh in September 2025. Employee costs, finance cost, depreciation and other expenses therefore made up the reported quarterly expense base of Rs 12.52 lakh.

Deferred tax was a credit of Rs 0.12 lakh in the September 2026 quarter, compared with a Rs 0.16 lakh credit in the year-earlier quarter. The credit reduced the loss before tax of Rs 12.52 lakh to a post-tax loss of Rs 12.40 lakh. Current tax was nil in each of the three quarterly periods presented.

How did Nivaka Fashions perform in the first half of 2026-27?

Nivaka Fashions posted a net loss of Rs 27.45 lakh for the half year ended 30 September 2026, compared with a loss of Rs 1.0713 crore in the comparable prior-year half. Total income from operations declined to Rs 1.25 lakh from Rs 9.48 lakh, while the six-month expense base was lower.

Total expenses for the half year were Rs 28.93 lakh, down from Rs 1.1731 crore in the half year ended 30 September 2025. Employee benefits expense fell to Rs 18.44 lakh from Rs 32.42 lakh, other expenses to Rs 5.31 lakh from Rs 30.76 lakh, finance cost to Rs 3.51 lakh from Rs 14.63 lakh, and depreciation and amortisation to Rs 1.57 lakh from Rs 27.79 lakh.

Basic and diluted loss per share for the half year was Rs 0.03, compared with Rs 0.10 in the prior-year half. For the year ended 31 March 2026, Nivaka Fashions reported a net loss of Rs 5.208 crore, total expenses of Rs 5.411 crore and total income from operations of Rs 18.30 lakh. The filing does not disclose a revenue target, operating forecast or turnaround timetable.

What does Nivaka Fashions’ September balance sheet show?

Nivaka Fashions reported total assets of Rs 9.1905 crore at 30 September 2026, up from Rs 8.6618 crore at 31 March 2026, while other equity was negative Rs 6.166 crore compared with negative Rs 5.8915 crore. The movement in other equity is broadly consistent with the Rs 27.45 lakh loss reported for the first half.

Property, plant and equipment stood at Rs 5.7845 crore at 30 September, marginally below Rs 5.8002 crore at 31 March. Investments were unchanged at Rs 1.0796 crore. Loans increased to Rs 1.0878 crore from Rs 21.85 lakh, while other current assets declined to Rs 1.0634 crore from Rs 1.3738 crore. Cash and cash equivalents decreased to Rs 7.04 lakh from Rs 8.72 lakh.

Non-current borrowings increased to Rs 2.1828 crore from Rs 1.1452 crore during the six-month period. Trade payables due to parties other than micro, small and medium enterprises increased to Rs 1.1764 crore from Rs 51.29 lakh. Other current liabilities fell to Rs 1.2948 crore from Rs 2.0054 crore, while provisions decreased to Rs 43.35 lakh from Rs 62.07 lakh.

The half-year cash-flow statement reported net cash from operating activities of negative Rs 15 lakh, compared with negative Rs 2.22 lakh for the year ended 31 March 2026. It reported net cash from investing activities of Rs 86.93 lakh and net cash used in financing activities of Rs 1.0024 crore. Closing cash and cash equivalents were Rs 7.04 lakh at 30 September 2026.

What did the limited review report identify?

The reviewer said nothing had come to its attention that caused it to believe the unaudited September 2026 results failed to disclose required information or contained a material misstatement. MAARK & Associates conducted the limited review under the applicable review standard, which it said provides less assurance than an audit.

The report noted that reviews of the June 2026 and September 2025 financial results, and the audit of the year ended 31 March 2026 financial results, had been performed by ADV & Associates. Those earlier reports included modified opinions, according to the current reviewer’s report dated 14 November 2026.

MAARK & Associates also stated that balances of loans and advances, sundry debtors and sundry creditors were subject to management confirmation. The balance sheet included loans of Rs 1.0878 crore and trade payables to parties other than micro, small and medium enterprises of Rs 1.1764 crore at 30 September 2026.

Conclusion

Nivaka Fashions reduced its reported loss in both the September quarter and first half through a substantially lower expense base, but the September quarter had nil total income from operations. The results also show a first-half loss of Rs 27.45 lakh, negative other equity of Rs 6.166 crore and higher non-current borrowings of Rs 2.1828 crore at 30 September 2026.

The next disclosed matter to watch is the proposed voluntary delisting from Metropolitan Stock Exchange of India Limited and The Calcutta Stock Exchange Limited, approved by the board on 14 November 2026. Nivaka Fashions said it will publish a public notice under the Securities and Exchange Board of India delisting regulations, while its equity shares will remain listed on BSE.