Procal reports nil revenue and Rs 1.31 lakh September loss

Procal Electronics India Limited reported nil revenue from operations and a Rs 1.31 lakh net loss for the quarter ended September 30, 2026. Procal remained non-operational, recorded no employee cost and held nil inventory, while its statutory auditors retained a qualified conclusion citing going-concern uncertainty and unverified balances.

What did Procal report for the September 2026 quarter?

Procal reported nil revenue from operations and a Rs 1.31 lakh net loss for the quarter ended September 30, 2026. The unaudited statement also showed no other income, leaving total income nil for the period. Loss before tax was Rs 1.31 lakh and no tax expense was recorded, resulting in the same net loss.

Total expenses were Rs 1.31 lakh in the September 2026 quarter, matching the loss because the company did not report income. Basic and diluted earnings per share were negative Rs 0.04, compared with negative Rs 0.03 in the quarter ended September 30, 2025. Paid-up equity share capital remained Rs 3.50 crore, with a face value of Rs 10 per equity share.

How did Procal's September 2026 loss compare with earlier periods?

Procal's September 2026 loss was unchanged from the Rs 1.31 lakh loss in the quarter ended June 30, 2026. Nil revenue was reported in both quarters, so the half-year loss for the period ended September 30, 2026 was Rs 2.62 lakh. The September-quarter earnings per share also remained negative Rs 0.04 sequentially.

Procal's Rs 1.31 lakh September 2026 loss was Rs 0.15 lakh higher than the Rs 1.16 lakh loss in the quarter ended September 30, 2025. For the year ended March 31, 2026, the company reported a Rs 4.12 lakh loss, compared with the Rs 2.62 lakh loss for the first six months of the following financial year. The two periods are not directly equivalent because one covers 12 months and the other six months.

Why is Procal non-operational?

Procal said it was presently non-operational at the September 30, 2026 reporting date. The company reported no employee cost as at that date, and its September-quarter statement showed nil revenue from operations. Management also confirmed that raw-material and finished-goods inventory was nil at the reporting date.

Procal said the Labour Codes effective November 21, 2025 had no current impact on its interim financial results because it had no employees. The company also stated that its activity fell within a single operating segment, so the disclosure requirements of Indian Accounting Standard 108, Operating Segments, did not apply. No separate operating segment generated revenue during the September 2026 quarter.

What does Procal's September 2026 balance sheet show?

Procal reported total assets of Rs 6.8822 crore at September 30, 2026, unchanged from March 31, 2026. Non-current trade receivables were Rs 6.672 crore, while other financial assets were Rs 7.50 lakh and other non-current assets were Rs 13.48 lakh. Cash and cash equivalents stood at Rs 4,000 at both September 30, 2026 and March 31, 2026.

Procal reported non-current liabilities of Rs 12.181 crore at September 30, 2026, up from Rs 12.1548 crore at March 31, 2026. Non-current borrowings were unchanged at Rs 9.6378 crore, while other financial liabilities increased by Rs 2.47 lakh to Rs 2.1989 crore. Current liabilities were Rs 25.50 lakh, whereas current assets were Rs 4,000.

Other equity was negative Rs 9.0537 crore at September 30, 2026, compared with negative Rs 9.0275 crore at March 31, 2026. The Rs 2.62 lakh deterioration corresponds with the half-year loss reported through September 2026. The cash-flow statement also recorded a Rs 2.62 lakh loss before tax for the six months ended September 30, 2026.

Why did auditors qualify Procal's September 2026 results?

Procal's statutory auditors issued a qualified conclusion on the unaudited results for the quarter ended September 30, 2026. They said net worth had been fully eroded by continuous losses, the company had no business operations, and current liabilities exceeded current assets. The auditors said these conditions created material uncertainty about Procal's ability to continue as a going concern.

The auditors also cited nil inventory and the absence of external balance confirmations for trade receivables, payables, loans, advances and other balances. As a result, they said they could not independently verify the correctness, completeness, recoverability or payability of those balances. The financial effect of the qualifications was not quantified because sufficient appropriate audit evidence was unavailable.

Procal management said it was evaluating measures to revive operations and improve its financial position, including possible financial support and strategic alternatives. Management said it was reconciling balances with available books and records and would seek confirmations from counterparties where feasible. It also said certain bank accounts were inoperative because of pending know-your-customer, or KYC, compliance and that it was taking steps to complete the required formalities.

Conclusion

The September 2026 results show that Procal's reported financial activity remained limited to expenses and losses rather than operating income. The company had Rs 6.8822 crore of assets, including Rs 6.672 crore of non-current receivables, against Rs 12.181 crore of non-current liabilities, while the auditors' qualified conclusion covered both going-concern uncertainty and unverified balances.

The next items to watch are management's disclosed efforts to revive operations, seek financial support or assess strategic alternatives. Progress on KYC formalities for inoperative bank accounts, reconciliation of outstanding balances and external confirmations will also matter because management identified these as steps to address the matters raised in the September 2026 limited review.