According to reports from Business Standard, Rathi Bars reported a standalone net loss of ₹15.62 crore in the quarter ended June 2026, marking a significant deterioration from the net profit of ₹0.84 crore recorded during the corresponding quarter of the previous financial year. This represents a complete reversal in the company's profitability trajectory compared to the same period last year. The latest financial results show the company's total expenses for the quarter amounted to ₹15.62 crore, with revenue from operations severely impacted by ongoing operational challenges.
As reported by Business Standard, the company experienced a complete revenue collapse with zero sales reported in the quarter ended June 2026, compared to ₹132.84 crore in sales during the corresponding quarter of the previous financial year. The latest results confirm this trend, with total revenue from operations for the quarter being ₹19.54 lakh, representing a 100% decline in revenue from the previous year. Manufacturing operations continue to remain suspended due to various reasons, including regulatory directives and increased power tariffs, significantly impacting the company's ability to generate meaningful revenue.
According to the latest financial data, the company faces significant financial distress with a provision of ₹11.94 crore recognized for bad and doubtful debts, representing approximately 20% of disputed trade receivables. This provision, coupled with existing litigation and significant bank dues classified as Non-Performing Assets (NPA), highlights ongoing financial challenges. The company's operating profit margin (OPM) stood at 2.36% in the quarter ended June 2026, while the profit before depreciation and tax (PBDT) was ₹14.60 crore, showing a loss position.
The Board is actively exploring revival and re-commencement of operations, including legal avenues and discussions with bankers and lenders for restructuring and asset monetization. Manufacturing operations continue to be suspended with no change in status reported since the previous review. The company's ability to continue as a going concern is subject to the successful resolution of these matters, with ongoing litigation and significant bank dues creating additional pressure on the company's financial position.
