Tasty Dairy reports Rs 60.51 lakh loss as production stays shut

Tasty Dairy Specialities Limited reported a standalone loss of Rs 60.51 lakh for the half year ended September 30, 2026, while its manufacturing activities remained suspended during the Corporate Insolvency Resolution Process (CIRP). Total income was Rs 30.67 lakh, including Rs 30.57 lakh of other income, against total expenses of Rs 91.08 lakh.

What did Tasty Dairy report for the first half?

Tasty Dairy reported a loss after tax of Rs 60.51 lakh for the half year ended September 30, 2026, compared with a Rs 405.05 lakh loss in the comparative half-year column labelled September 30, 2028. The latest loss before tax was also Rs 60.51 lakh because the company reported no tax expense, while the comparative pre-tax loss was Rs 406.50 lakh.

The reported loss reduced by Rs 344.54 lakh between the two half-year columns, alongside a Rs 645.20 lakh reduction in total expenses. Total income declined to Rs 30.67 lakh from Rs 329.78 lakh, and the revenue-from-operations line for the latest half year was shown as nil in the financial-results statement.

Tasty Dairy’s loss after tax for the September 2026 quarter was Rs 27.83 lakh, compared with Rs 32.68 lakh in the June 2026 quarter. The September quarter recorded Rs 16.67 lakh of other income and Rs 44.71 lakh of expenses, including Rs 20.46 lakh of depreciation and amortisation. Basic and diluted loss per share for the half year was Rs 0.30, against Rs 1.00 in the comparative half-year column.

Why was Tasty Dairy’s income not from manufacturing operations?

Tasty Dairy’s latest half-year income was predominantly other income because manufacturing activities had ceased, according to the limited-review report. Other income of Rs 30.57 lakh represented nearly all of the Rs 30.67 lakh total income for the half year ended September 30, 2026, while the revenue-from-operations line was nil.

The cost structure changed markedly from the comparative period. The latest half year contained Rs 58.91 lakh of depreciation and amortisation and Rs 32.18 lakh of other expenses, whereas the comparative column included Rs 268.82 lakh of material-consumption costs, Rs 47.37 lakh of finance costs and Rs 61.47 lakh of depreciation and amortisation.

Tasty Dairy also had arrangements involving related party Agrim Food LLP during the CIRP. From May 2026, the Resolution Professional arranged use of two vehicles and certain plant and machinery or equipment; from September 2026, use of the plant and machinery or equipment was discontinued, with the arrangement revised to one vehicle and certain plant or factory premises. The auditor said Agrim Food had paid expenses including salaries, wages and fuel before the CIRP because of liquidity constraints.

What does Tasty Dairy’s balance sheet show during CIRP?

Tasty Dairy reported total assets of Rs 59.5052 crore as at September 30, 2026, compared with Rs 58.0809 crore in the balance-sheet comparison column labelled March 31, 2028. Share capital was Rs 20.43 crore and other equity was negative Rs 55.7319 crore, resulting in negative equity of Rs 35.3019 crore.

Property, plant and equipment stood at Rs 9.1754 crore on September 30, 2026, compared with Rs 9.7645 crore in the comparison column. Deferred-tax assets were Rs 33.3824 crore, other non-current assets were Rs 7.6168 crore and cash and cash equivalents were Rs 2.5551 crore. Bank balances other than cash equivalents increased to Rs 4.4256 crore from Rs 2.3320 crore.

Non-current borrowings were Rs 39.7367 crore and current borrowings were Rs 8.6299 crore as at September 30, 2026. The auditor said certain assets had been sold by the lending bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 before CIRP, but remained recorded as property, plant and equipment because complete details were unavailable and the suspended management had not recognised the transactions.

What did Tasty Dairy’s cash flow statement show?

Tasty Dairy’s cash and cash equivalents increased by Rs 0.17 lakh during the half year to Rs 2.5551 crore at September 30, 2026, from Rs 2.5534 crore at the start of the period. The cash-flow statement reported Rs 2.0995 crore of net cash generated from operating activities and Rs 2.0978 crore used in investing activities, leaving limited movement in cash.

Working-capital movements rather than the Rs 60.51 lakh pre-tax loss drove the reported operating cash flow. The statement recorded a Rs 2.10 crore increase in other financial liabilities and a Rs 2.0995 crore increase in provisions, while operating profit before working-capital changes was a loss of Rs 1.83 lakh. Investing outflows included Rs 2.0936 crore for purchase or maturity of fixed deposits and Rs 0.75 lakh in other non-current assets.

What did the auditor qualify in Tasty Dairy’s results?

Tasty Dairy received a qualified conclusion from Neha B Agarwal And Co on its unaudited standalone results for the quarter and six months ended September 30, 2026. The report, dated November 12, 2026, said the results had been prepared on a basis other than going concern because accumulated losses, fully eroded net worth and ceased manufacturing created material uncertainty about the company’s ability to continue as a going concern.

The auditor said it could not assess the completeness of litigation disclosures or their eventual financial effect because certain documents had not been fully provided by the suspended management and, in some cases, no claims had been filed under CIRP by the reporting date. It also said balances of debtors, creditors, loans and advances remained unconfirmed and unreconciled, preventing an assessment of their accuracy and completeness.

Tasty Dairy entered CIRP under an order of the National Company Law Tribunal, Allahabad Bench, dated October 7, 2025, following an application by Punjab National Bank. The board’s powers are suspended and management is vested in the Resolution Professional. Creditor claims have been collated, but the auditor said amounts admitted, settled or otherwise determined remain subject to verification and the final CIRP outcome.

Conclusion

Tasty Dairy’s first-half loss narrowed to Rs 60.51 lakh from Rs 405.05 lakh in the comparative half-year column, largely alongside expenses falling to Rs 91.08 lakh from Rs 736.28 lakh. However, the latest Rs 30.67 lakh of total income was almost entirely other income, manufacturing remained suspended and equity was negative Rs 35.3019 crore as at September 30, 2026.

The next disclosed matter to watch is the CIRP process that began on October 7, 2025. The Resolution Professional is verifying claims and managing records available from the suspended management, while the auditor has identified unresolved litigation, unreconciled balances and unrecognised pre-CIRP asset-sale transactions that could affect reported asset and liability values.