Shrenik Limited posts September loss as revenue falls 34%

Shrenik Limited posted a Rs 13.17 lakh net loss for the quarter ended September 30, 2026, as revenue from operations fell 34% year on year to Rs 5.62 crore from Rs 8.51 crore. The paper-trading company had reported a Rs 22.21 lakh profit in the corresponding quarter a year earlier.

Why did Shrenik report a September-quarter loss?

Shrenik reported a September 2026 quarterly loss because total expenses of Rs 5.75 crore exceeded total revenue of Rs 5.62 crore by Rs 13.17 lakh. This compared with a Rs 22.21 lakh net profit in the quarter ended September 30, 2025, and a Rs 19.76 lakh loss in the quarter ended June 30, 2026.

Revenue from operations declined from Rs 8.51 crore in the September 2025 quarter to Rs 5.62 crore in September 2026, a 34% decrease. It also fell from Rs 6.69 crore in the June 2026 quarter, a sequential decline of about 16%. Shrenik identifies paper trading as its only business segment, so the revenue movement relates to that business.

Purchases of stock-in-trade declined to Rs 5.61 crore from Rs 8.79 crore a year earlier, but other expenses rose to Rs 13.17 lakh from Rs 4.51 lakh. Employee-benefit expense increased to Rs 1.12 lakh from Rs 0.52 lakh. The September 2025 quarter also included Rs 55.22 lakh of other income, while no other income was reported for the September 2026 quarter.

How did Shrenik perform in the half year ended September 2026?

Shrenik recorded a Rs 32.93 lakh net loss for the half year ended September 30, 2026, compared with a Rs 15.05 lakh profit in the corresponding half year of 2025. Total revenue declined to Rs 12.32 crore from Rs 15.28 crore, while total expenses declined to Rs 12.65 crore from Rs 15.13 crore.

The six-month revenue decrease was Rs 2.96 crore, but expenses remained Rs 32.93 lakh above revenue. Purchases of stock-in-trade fell to Rs 12.25 crore from Rs 15.01 crore, while other expenses increased to Rs 37.60 lakh from Rs 9.67 lakh. Employee-benefit expense rose to Rs 2.24 lakh from Rs 1.56 lakh.

No other income was reported for the half year ended September 2026, whereas the corresponding 2025 period included Rs 93.92 lakh. As a result, total revenue equalled operating revenue at Rs 12.32 crore in the current half year. In the September 2025 half year, total revenue of Rs 15.28 crore exceeded revenue from operations of Rs 14.34 crore because of other income.

Paid-up equity share capital was unchanged at Rs 61.20 crore at September 30, 2026, based on a Re 1 face value per share. Reserves excluding revaluation reserve were negative Rs 237.4969 crore, compared with negative Rs 237.1760 crore at March 31, 2026. The Rs 32.93 lakh half-year loss was reflected in the increase in the accumulated deficit.

What do Shrenik's balance sheet and cash flow show?

Shrenik reported total assets of Rs 1.4622 crore at September 30, 2026, compared with Rs 5.6081 crore at March 31, 2026. Trade receivables fell to Rs 0.27 lakh from Rs 4.0874 crore, while cash and cash equivalents increased to Rs 11.95 lakh from Rs 10.06 lakh.

Current borrowings were Rs 74.8554 crore at September 30, 2026, down from Rs 76.2607 crore at March 31, 2026. Non-current borrowings increased to Rs 49.2473 crore from Rs 48.3327 crore. Trade payables declined to Rs 5.3957 crore from Rs 8.4557 crore, and other current liabilities fell to Rs 57.19 lakh from Rs 82.35 lakh.

Net cash used in operating activities was Rs 99.05 lakh for the period ended September 30, 2026. The cash-flow statement records a Rs 4.0847 crore reduction in trade receivables, partly offset by a Rs 3.0743 crore reduction in trade and other payables and provisions and a Rs 1.4053 crore reduction in current financial borrowings. Net financing cash flow was an inflow of Rs 91.46 lakh, leaving cash higher by Rs 1.89 lakh.

What does CIRP mean for Shrenik's results?

Shrenik has been under the Corporate Insolvency Resolution Process (CIRP) since the National Company Law Tribunal, Ahmedabad Bench, admitted it on July 30, 2026, under the Insolvency and Bankruptcy Code, 2016. The board's powers are suspended, and Rahul N. Shah acts as resolution professional after confirmation by the Committee of Creditors.

The resolution professional reviewed and took the September 2026 quarter and half-year results on record on November 5, 2026. The filing says the results were prepared under his supervision using books and records, explanations from employees and finance personnel, information from erstwhile management, and other available sources.

Shrenik said historical records and supporting documents for periods before the July 30, 2026 CIRP commencement may need further verification, reconciliation or confirmation. The resolution professional relied on available information in preparing the results. S.G. Marathe & Co.'s limited review of the unaudited standalone results said nothing had come to its attention indicating a material misstatement, while noting that a review provides less assurance than an audit.

Conclusion

Shrenik's September 2026 loss reflected a 34% year-on-year decline in paper-trading revenue from operations to Rs 5.62 crore and expenses of Rs 5.75 crore. The half-year Rs 32.93 lakh loss, negative Rs 99.05 lakh operating cash flow and reduction in total assets to Rs 1.4622 crore provide the reported financial position during CIRP.

The next disclosed matter to watch is the continuing CIRP, under which the resolution professional is responsible for preserving assets and value and continuing business operations as a going concern to the extent practicable. Further verification, reconciliation or confirmation of records relating to periods before July 30, 2026 also remains unresolved in the filing.