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Shivam Autotech Ltd

| Quarterly Financial Results Q3 FY 2025-26

BEARISH SENTIMENT

Report Source

⬤4th Feb 26

Summary : Shivam Autotech Limited reported significant net losses and negative net worth, but management expects better performance through strategic actions and capital raising.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of materials consumed for Q3 FY25: Rs. 3,274.68 Lakhs; 9M FY25: Rs. 10,677.50 Lakhs.
  2. Employee benefits expense for Q3 FY25: Rs. 1,377.97 Lakhs; 9M FY25: Rs. 4,118.75 Lakhs.
  3. Finance Cost for Q3 FY25: Rs. 1,905.13 Lakhs; 9M FY25: Rs. 4,505.68 Lakhs.
  4. Total expenses for Q3 FY25: Rs. 11,852.43 Lakhs; 9M FY25: Rs. 35,079.36 Lakhs.
  5. Revenue from Operation for Q3 FY25: Rs. 9,618.47 Lakhs.
  6. Revenue from Operation for 9M FY25: Rs. 30,014.98 Lakhs.
  7. Net worth stands negative at Rs. 2,282.58 Lakhs as at December 31, 2025.
  8. Paid up equity share capital: Rs. 2,629.90 Lakhs.
  9. Disclosure of Related Party Transactions for the quarter and half year - Not Applicable.
  10. The results are presented as a Statement of Unaudited Financial Results, likely standalone given the single segment disclosure.

Corporate Overview

  1. Single geographical segment.
  2. The Company has incurred net loss of Rs. 5,430.68 Lakhs for the nine months ended December 31, 2025.
  3. Net worth stands negative at Rs. 2,282.58 Lakhs as at December 31, 2025.
  4. Significant management judgement is considered in determining deferred tax assets and recoverability of deferred tax assets and Minimum Alternate Tax (MAT) credit entitlement.
  5. The Company's business activity falls within a single primary business segment viz 'Automobile Parts'.
  6. The Company has taken various strategic actions and expects better performance in the coming quarters.
  7. Single primary business segment: Automobile Parts.

Risk Factors

  1. Significant net loss and negative net worth.
  2. Uncertainty in deferred tax asset recovery.
  3. High finance costs impacting profitability.
  4. Single segment business concentration risk.

Key Drivers

  1. Strategic actions for improved future performance.
  2. Approval to issue convertible debentures.
  3. Potential recovery of deferred tax assets.
  4. Recognition of new labor codes impact.

Auditor’s Report

  1. Review report, not an audit opinion. The auditors do not express an audit opinion.
  2. Nothing has come to the auditors' attention that causes them to believe the statement contains any material misstatement.
  3. Management judgment on determining deferred tax assets and Minimum Alternate Tax (MAT) credit entitlements and their recoverability.
  4. The Company has incurred net loss of Rs. 5,430.68 Lakhs for the nine months ended December 31, 2025, and net worth stands negative at Rs. 2,282.58 Lakhs as at December 31, 2025.

Board Commentary

  1. Incurred net loss of Rs. 5,430.68 Lakhs for the nine months ended December 31, 2025.
  2. Net worth stands negative at Rs. 2,282.58 Lakhs as at December 31, 2025.
  3. Management judgement in determining deferred tax assets and MAT credit entitlements and their recoverability.
  4. Compliance under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
  5. Recognition of Rs. 111.62 Lakhs due to new Labour Codes notified by the Government of India on November 21, 2025.
  6. Approval for the issue of 12,000 Optionally Convertible Debentures (OCDs) on preferential basis.

Corporate Governance

  1. The Audit Committee reviewed the results for the quarter ended December 31, 2025.

Management Discussion & Analysis

Future Strategy

  1. The Company has taken various strategic actions and expects better performance in the coming quarters.
  2. Received in-principal approvals for the issue of 12,000 Optionally Convertible Debentures (OCDs) on preferential basis.

Macroeconomic Outlook

  1. On November 21, 2025, the Government of India notified four New Labour Codes. The Company has recognised amount of Rs. 111.62 Lakhs of these changes.

Performance Drivers

  1. Strategic actions taken by the Company to improve performance.

Risk Control Measures

  1. Management expects to use unabsorbed business depreciation and MAT credit to set off taxable profit arising in subsequent years from operation.
  2. Strategic actions have been taken to improve performance.

Critical Risks

  1. Incurred net loss of Rs. 5,430.68 Lakhs for the nine months ended December 31, 2025.
  2. Net worth stands negative at Rs. 2,282.58 Lakhs as at December 31, 2025.
  3. Uncertainty regarding the recoverability of deferred tax assets and MAT credit entitlement, based on estimates of future taxable income.