According to the latest financial results, Sparc Electrex faced significant audit challenges with statutory auditors Motilal & Associates LLP issuing a qualified opinion on the financial results for FY2026. The auditors flagged material inventory write-offs of ₹231.47 lakh and a provision of ₹75 lakh for stock, noting the absence of valuation reports or supporting documents. Additionally, the company wrote back trade receivables of ₹48.16 lakh and wrote off trade payables of ₹99.09 lakh without adequate reasons, supporting documentation, or balance confirmations from debtors and creditors. The auditors stated they were unable to determine the appropriateness of these write-offs due to insufficient evidence.
According to reports from Business Standard, Sparc Electrex reported a standalone net loss of ₹2.77 crore in the quarter ended March 2026, representing a 69% increase from the net loss of ₹1.64 crore recorded in the corresponding quarter of the previous year. The company's operational performance showed significant deterioration with zero sales reported during Q4 FY2026, compared to ₹0.44 crore sales in Q4 FY2025, marking a 100% decline in revenue generation.
As reported by Business Standard, for the full financial year ended March 2026, Sparc Electrex recorded a net loss of ₹446.18 lakh, substantially higher than the net loss of ₹152.04 lakh reported in the previous financial year ended March 2025. The company's annual sales performance declined significantly, with revenue from operations falling 92.35% to ₹28.29 lakh in FY2026 compared to ₹366.10 lakh in FY2025. The manufacturing segment reported ₹28.09 lakh revenue while the trading segment contributed only ₹0.20 lakh. The operational profit margin (OPM) also deteriorated, with the company reporting -368.18% OPM in FY2026 versus -1728.57% OPM in the previous year.
According to the latest disclosures, Sparc Electrex disclosed that its bank accounts were frozen by the Income Tax Department on November 24, 2025, due to unpaid tax demands. The auditors emphasized this matter in their report, noting that the impact on the company's operations and financial position depends on the outcome of related proceedings. The company's total income for FY2026 stood at ₹73.07 lakh, down from ₹366.10 lakh in the prior year, while total expenses increased to ₹519.25 lakh from ₹518.14 lakh in the previous year. The basic earnings per share (EPS) for FY26 was (₹4.45), compared to (₹1.52) in FY25.
According to the financial data, the company's profit before tax (PBT) declined by 66% to ₹2.78 crore in Q4 FY2026 from ₹1.67 crore in Q4 FY2025. For the full year, PBT decreased by 193% to ₹446.18 lakh compared to ₹152.04 lakh in the previous year. The company's profit before depreciation and tax (PBDT) also reflected the challenging operating environment, with Q4 PBDT declining by 66% to ₹2.78 crore and full-year PBDT falling by 193% to ₹446.18 lakh. The Board of Directors approved the audited standalone financial results for the quarter and year ended March 31, 2026, at a meeting held on June 23, 2026.
