Satchmo Holdings Ltd (533202)

Satchmo Holdings reported a standalone net loss of Rs 3.73 crore for Q2 FY27 (ended September 30, 2026), compared to a profit of Rs 36.54 crore in Q2 FY26. Standalone revenue from operations dropped sharply to just Rs 0.04 crore (Rs 4 lakhs) from Rs 8.85 crore a year ago. Total expenses for the quarter stood at Rs 4.16 crore, leading to an operating loss before tax of Rs 3.73 crore. Statutory auditors flagged key issues under Emphasis of Matter, including Rs 19.28 crore in disputed liabilities on the Long Island project, pending 'No Dues Certificate' from HDFC Ltd for Rs 15.54 crore, and unpaid VAT dues of Rs 12.57 crore.

• Standalone revenue from operations collapsed to Rs 4 lakhs in Q2 FY27 from Rs 885 lakhs in Q2 FY26
• Net loss for Q2 FY27 stood at Rs 373 lakhs compared to a net profit of Rs 3,654 lakhs in Q2 FY26
• Total expenses remained high relative to top-line at Rs 416 lakhs for the quarter
• Auditors highlighted a disputed liability of Rs 1,928 lakhs for the Long Island Project where revenue recognition is halted
• Unresolved VAT liability of Rs 1,257 lakhs pending clearance, currently under a High Court stay order

Satchmo Holdings reported a consolidated net loss of Rs 4.70 Cr for the quarter ended June 30, 2026, compared to a loss of Rs 2.61 Cr in the same period last year. While revenue from operations grew to Rs 1.29 Cr from a negligible base of Rs 0.13 Cr, the company remains operationally stressed with total expenses exceeding income. The statutory auditor has raised several critical concerns, including a Rs 19.28 Cr disputed liability and Rs 12.59 Cr in outstanding VAT dues. Additionally, the company has not renewed its RERA registration for the 'Rio' project since 2019.

• Consolidated net loss widened to Rs 4.70 Cr in Q1 FY27 from Rs 2.61 Cr in Q1 FY26.
• Auditor highlighted a disputed liability of Rs 19.28 Cr for the Long Island Project where revenue recognition is suspended.
• Outstanding VAT dues of Rs 12.59 Cr remain unpaid with no reasons provided to auditors.
• Unexplained disbursements of Rs 19.74 lakhs were noted during the quarter without payee details.
• RERA registration for the 'Rio' project has been expired and not renewed since March 31, 2019.