According to reports from Business Standard, Nivaka Fashions reported a standalone net loss of ₹3.61 crore in the quarter ended March 2026, marking a significant deterioration from the net profit of ₹0.24 crore recorded in the corresponding quarter of the previous year. The company's sales performance was notably absent during the March 2026 quarter, with no sales reported compared to ₹1.30 crore in the March 2025 quarter. This represents a complete reversal in the company's revenue generation capabilities during the quarter. As per the latest financial results approved by the board on May 30, 2026, the company's total income for Q4 FY26 stood at ₹3.94 lakh, while total expenses surged to ₹364.35 lakh, driven by significant increases in changes in inventories to ₹151.60 lakh and other expenses to ₹171.23 lakh.
As reported by Business Standard, the company's full-year performance showed even more challenging results, with net loss reaching ₹5.21 crore for the year ended March 2026, compared to a net loss of ₹0.50 crore in the previous year ended March 2025. Annual sales declined dramatically by 98.64% to ₹0.02 crore in FY2026 from ₹1.47 crore in FY2025. The company's profit before tax (PBT) also turned negative at ₹5.23 crore loss for the full year compared to a ₹0.49 crore profit in the previous year. According to the latest audited results, total income for FY26 declined to ₹18.32 lakh from ₹183.85 lakh in FY25, primarily due to a sharp drop in revenue from operations to ₹1.65 lakh. The statutory auditors carried out a limited review of the results, and their report is unqualified.
According to the financial data reported by Business Standard, the company's operational performance metrics showed significant deterioration across key parameters. The operating profit margin (OPM) turned negative at -22.40% for the March 2026 quarter, while the previous year's OPM stood at 33.85%. The company's profit before depreciation and tax (PBDT) also declined substantially to ₹-3.55 crore in Q4 FY2026 from ₹0.38 crore in the corresponding quarter of the previous year. As reported by Business Standard, the board has appointed H R Bohra and Co as internal auditor for FY 2026-27 at a meeting held on May 30, 2026. The firm has extensive experience in internal audit and internal financial controls reviews and holds a valid Peer Review certificate. The appointment is effective for the upcoming fiscal year.
The auditor's report included an emphasis of matter regarding a significant CGST order under section 73(9) of the CGST Act. The order alleges a mismatch of Input Tax Credit (ITC) claimed and ineligible ITC from a supplier with cancelled registration, aggregating ₹422.73 lakh including tax, interest, and penalty for the period July 1, 2017, to March 31, 2019. Management is confident of a favorable outcome, and no adjustments have been made to the financial results as reported by Business Standard. The meeting commenced at 4:36 pm and concluded at 4:52 pm on May 30, 2026, with the intimation regarding the outcome submitted to BSE Limited and Metropolitan Stock Exchange of India Limited.
