Galada Power & Telecommunication reported a net loss of ₹14.43 lakh in Q1 FY27, representing an improvement from the ₹16.00 lakh loss recorded in Q4 FY26. According to the company's unaudited financial results approved by the board on August 13, 2026, this loss was achieved despite generating zero operational revenue from core business activities. The company's total revenue for the quarter was limited to ₹0.31 lakh, derived entirely from other income, while total expenses stood at ₹14.74 lakh.
The company reported nil sales for the quarter ended June 2026, as stated in the financial results reported by Business Standard. This compares to the same revenue figure recorded during the quarter ended June 2025, indicating no business activity or sales generation during the recent quarter. The divergence between zero operational revenue and continued expenditure highlights the transitional nature of the company's current business phase, with ₹10.61 lakh in other expenses constituting approximately 72% of total outflows.
Total expenses for Q1 FY27 amounted to ₹14.74 lakh, with other expenses of ₹10.61 lakh and employee benefits of ₹4.03 lakh. Depreciation and amortization expenses amounted to ₹0.10 lakh. The reduction in quarterly loss from ₹16.00 lakh to ₹14.43 lakh was primarily driven by a decrease in total expenses by ₹4.26 lakh, rather than any growth in revenue. Other income fell sharply from ₹5.00 lakh in Q4FY26 to ₹0.31 lakh in the current quarter, underscoring the lack of recurring operational cash flows.
The company disclosed that it is in the process of reviving and revamping its manufacturing facilities to partially finance this revamping, the company sold land and buildings situated in Silvassa. The firm has disposed of or written off most redundant plant and equipment, with remaining assets shown as held for sale at book values. The company stated it is pursuing another object permitted by its memorandum to revive operations. Galada Power also noted a balance of ₹126.37 lakh in GST input accounts, expressing the opinion that these amounts will be utilizable, with this position scheduled for review at the year-end.
Independent auditors Brahmayya & Co issued an unmodified review report but included an emphasis of matter regarding the company's financial position. The auditors noted that the financial statements were prepared on a going concern basis despite the absence of operational activities and a negative net worth as of the reporting date. This emphasizes the ongoing challenges facing the company's financial stability, with the auditors highlighting the need for concrete steps to secure additional equity or debt financing to stabilize the company's position.
