Vikas WSP loss narrows while operating revenue remains nil

VIKAS WSP LIMITED reported nil revenue from operations for the quarter ended September 30, 2026, while its net loss narrowed to Rs 153.24 lakh from Rs 875.69 lakh a year earlier. The lower loss reflected depreciation of Rs 12.49 lakh versus Rs 8.54 crore in the prior-year quarter, while total income was solely Rs 7.29 lakh of other income.

What did Vikas WSP report for the September 2026 quarter?

Vikas WSP reported nil revenue from operations for the quarter ended September 30, 2026, unchanged from both the June 2026 and September 2025 quarters. Other income was Rs 7.29 lakh, compared with Rs 4.05 lakh in the preceding quarter and Rs 4.80 lakh a year earlier, making it the entire reported total income for the September 2026 quarter.

The geographical segment disclosure also recorded nil revenue from customers in the United States, Europe, domestic markets and unallocated segments during the quarter. The Rs 7.29 lakh of unallocable revenue was interest received or accrued on fixed deposits, according to the notes, although the balance remained pending reconciliation because an interest certificate was unavailable.

Total expenses were Rs 160.53 lakh in the September 2026 quarter, compared with Rs 34.24 lakh in June 2026 and Rs 880.50 lakh in September 2025. Other expenses rose to Rs 143.66 lakh from Rs 18.78 lakh sequentially and Rs 23.53 lakh year on year, while employee-benefit expense increased to Rs 4.35 lakh from Rs 2.97 lakh in each comparison quarter.

Vikas WSP consequently recorded a loss before tax and net loss of Rs 153.24 lakh, as there was no exceptional item or tax charge during the quarter. Basic and diluted loss per share, which were non-annualised, stood at Rs 0.07, compared with Rs 0.43 in the September 2025 quarter.

Why did Vikas WSP's loss narrow from a year earlier?

Vikas WSP's September-quarter loss narrowed year on year mainly because reported depreciation fell to Rs 12.49 lakh from Rs 8.54 crore, rather than because operating revenue resumed. Total expenses declined by Rs 7.20 crore to Rs 1.61 crore, while other income rose by Rs 2.49 lakh to Rs 7.29 lakh.

The filing states that depreciation is measured using the straight-line method from the information available because the prior management did not hand over the fixed-asset register or earlier depreciation records. It also says no depreciation was charged on plant and machinery because the residual value of the relevant assets was considered substantially equal to or higher than their carrying amount; the Rs 12.49 lakh depreciation figure may therefore vary.

The comparison with June 2026 shows a different movement, with the net loss widening from Rs 30.19 lakh to Rs 153.24 lakh. Total expenses rose by Rs 126.29 lakh between the two quarters, exceeding the Rs 3.24 lakh increase in other income, as other expenses climbed by Rs 124.88 lakh to Rs 143.66 lakh.

Finance cost was Rs 3,000 in the September 2026 quarter, whereas none was reported in June 2026 or September 2025. Vikas WSP said it did not provide interest on dues payable to banks, institutions and other organisations during the quarter because of the moratorium imposed by the National Company Law Tribunal, Chandigarh Bench, on February 2, 2022.

What do Vikas WSP's half-year results show?

Vikas WSP reported nil operating revenue for the six months ended September 30, 2026, and a net loss of Rs 1.83 crore, compared with a loss of Rs 17.53 crore in the corresponding half year. Other income was Rs 11.34 lakh, marginally above Rs 11.14 lakh a year earlier, leaving the half-year result dependent on non-operating income rather than sales.

Total expenses for the six months fell to Rs 1.95 crore from Rs 17.65 crore in the prior-year period. Depreciation declined to Rs 24.97 lakh from Rs 17.08 crore, while other expenses increased to Rs 1.62 crore from Rs 50.64 lakh and employee-benefit expense rose to Rs 7.32 lakh from Rs 5.94 lakh.

Paid-up equity share capital was unchanged at Rs 20.44 crore at September 30, 2026, and half-year loss per share was Rs 0.09 against Rs 0.86 a year earlier. For the year ended March 31, 2026, Vikas WSP reported a net loss of Rs 66.98 crore after recognising a deferred-tax credit of Rs 40.55 crore.

What financial position and accounting matters does Vikas WSP disclose?

Vikas WSP reported current assets of Rs 494.63 crore at September 30, 2026, below current liabilities of Rs 653.69 crore. Trade and other receivables accounted for Rs 491.99 crore of current assets, while borrowings represented Rs 306.67 crore of current liabilities; at March 31, 2026, current assets were Rs 499.60 crore and current liabilities were Rs 657.01 crore.

The statutory auditor issued a qualified conclusion because Vikas WSP had not fully assessed potential impairment of tangible assets as required by Indian Accounting Standard 36. Property, plant and equipment were carried at Rs 462.64 crore at September 30, 2026, compared with Rs 462.89 crore at March 31, 2026, but the auditor said it could not determine the consequential impairment, if any.

The auditor also cited unconfirmed or unsupported balances covering receivables, advances, payables and statutory balances, for which any adjustment and resulting effect on reported losses could not be determined. Supplier advances of Rs 66.74 crore and capital advances of Rs 20.43 lakh were subject to confirmation, with recoverability described as doubtful and no provision recorded pending resolution-plan implementation.

The filing disclosed a contingent liability of Rs 26.28 crore relating to the difference between workmen claims admitted by the Committee of Creditors on August 8, 2023 and the amount recognised in the financial statements. The admitted workmen claim was Rs 49.63 crore, against Rs 23.35 crore in the financial statements as of March 31, 2022.

What is the status of Vikas WSP's resolution plan?

Vikas WSP's resolution plan was approved by the National Company Law Tribunal, Chandigarh Bench, on September 9, 2026, and was under implementation at the reporting date. The company entered the Corporate Insolvency Resolution Process on February 2, 2022, and the Committee of Creditors had approved Arcbolt Space and Foods Private Limited's plan on August 25, 2022.

A monitoring committee supervises the plan's implementation and exercises the powers that would otherwise belong to the board, which remains suspended during the plan term. The committee includes representatives of Bank of India and the resolution applicant, along with Darshan Singh Anand, the former resolution professional, as chairman.

The filing defines the plan term as ending when specified actions are completed, and in any event no later than 90 days after the September 9, 2026 approval order. It says Vikas WSP's ability to restart and sustain operations depends on implementation of the plan, proposed fund availability, restoration of manufacturing facilities, working-capital support and future cash flows.

Conclusion

Vikas WSP's reported September 2026 loss was substantially lower than the prior-year loss, but the company still recorded no operating revenue in a third consecutive reported quarter. The reduction in depreciation from Rs 8.54 crore to Rs 12.49 lakh was the largest identified year-on-year change, while other expenses rose to Rs 143.66 lakh and the full Rs 7.29 lakh of income came from other income.

The next disclosed milestone is completion of the NCLT-approved resolution plan, whose term could run for no more than 90 days after the September 9, 2026 approval order. Progress on the proposed funding, liability settlement or restructuring, manufacturing-facility restoration and working-capital support will determine whether Vikas WSP can recommence operations and generate future cash flows.