The Board approved the Unaudited Financial Results of the Company for the quarter and half year ended September 30, 2026, along with a Statement of Assets and Liabilities as at September 30, 2026 and Statement of Cash Flow for the half year ended September 30, 2026.

The Board took note of the Limited Review Report on the Unaudited Standalone Financial Results issued by the Statutory Auditor of the Company, M/S YG & Associates, Chartered Accountants. The review report contained a qualified conclusion regarding several matters detailed in Annexure-A.

The Company changed its website domain from https://bglgroup.in/ to https://bhagawati.in/ effective November 14, 2026. All necessary steps have been taken to ensure a smooth transition with automatic redirection from the old domain to the new one.

Pursuant to the Prevention of Insider Trading Code, the Trading Window for dealing in securities of the Company by all Designated Persons and their immediate relatives will be opened from Tuesday, November 17, 2026 onwards.

Financial Results Analysis

Quarterly Performance (Q2 FY27 vs Q2 FY26)

  • Revenue from operations: ₹3.58 lakhs (vs ₹12.24 lakhs in Q2 FY26)
  • Other income: ₹30.87 lakhs (vs ₹17.06 lakhs in Q2 FY26)
  • Total Revenue: ₹34.45 lakhs (vs ₹29.30 lakhs in Q2 FY26)
  • Total expenses: ₹31.88 lakhs (vs ₹52.47 lakhs in Q2 FY26)
  • Profit before tax: ₹2.57 lakhs (vs loss of ₹23.17 lakhs in Q2 FY26)
  • Tax expense: ₹0.02 lakhs (deferred tax) (vs nil in Q2 FY26)
  • Net Profit after tax: ₹2.55 lakhs (vs loss of ₹23.17 lakhs in Q2 FY26)
  • Earnings per share (Basic and Diluted): ₹0.02 (vs loss of ₹0.14 in Q2 FY26)

Half-Yearly Performance (H1 FY27 vs H1 FY26)

  • Revenue from operations: ₹4.61 lakhs (vs ₹20.96 lakhs in H1 FY26)
  • Other income: ₹72.36 lakhs (vs ₹35.57 lakhs in H1 FY26)
  • Total Revenue: ₹76.97 lakhs (vs ₹56.53 lakhs in H1 FY26)
  • Total expenses: ₹74.11 lakhs (vs ₹107.66 lakhs in H1 FY26)
  • Profit before tax: ₹2.86 lakhs (vs loss of ₹51.13 lakhs in H1 FY26)
  • Tax expense: ₹26.10 lakhs (deferred tax) (vs nil in H1 FY26)
  • Net Loss after tax: ₹23.24 lakhs (vs loss of ₹51.13 lakhs in H1 FY26)
  • Earnings per share (Basic and Diluted): Loss of ₹0.14 (vs loss of ₹0.31 in H1 FY26)

Balance Sheet Position (as at September 30, 2026)

  • Total assets: ₹1,841.21 lakhs (vs ₹1,873.59 lakhs as at March 31, 2026)
  • Equity share capital: ₹1,674.25 lakhs (unchanged)
  • Other equity: Negative ₹126.81 lakhs (vs negative ₹103.58 lakhs)
  • Total equity and liabilities: ₹1,841.21 lakhs (vs ₹1,873.59 lakhs)

Cash Flow Statement (H1 FY27)

  • Net cash used in operating activities: ₹50.22 lakhs
  • Net cash from investing activities: ₹22.82 lakhs
  • Net cash from financing activities: ₹5.28 lakhs
  • Net decrease in cash and cash equivalents: ₹22.12 lakhs
  • Closing cash and cash equivalents: ₹34.21 lakhs

Auditor's Qualifications

The Statutory Auditor, M/S YG & Associates, issued a qualified review report highlighting several areas of concern:

1. Doubtful Loans/Advances (₹369.61 lakhs): The Company has not provided balance confirmation for:

  • Advances for purchase of property: ₹79.10 lakhs (other non-current asset)
  • Advances to Material and Service providers: ₹237.86 lakhs (other current asset)
  • Loans: ₹52.65 lakhs (non-current assets)

These amounts are outstanding for a long time raising significant doubt regarding recoverability. No Expected Credit Loss (ECL) provision has been made due to absence of a formally documented ECL policy.

2. Bank Statement Not Available: The company has not provided bank statement and confirmation for an ICICI Bank Account with a balance of ₹0.53 lakhs shown as cash and cash equivalents.

3. Uncertainty in Other Current Financial Liabilities: External balance confirmations not provided for Other Current Financial Liabilities of ₹7.94 lakhs outstanding for a substantial period.

4. Non-renewal of Bank Guarantee: The Company had provided a bank guarantee of ₹866.50 lakhs as directed by the Supreme Court in the matter of Hindustan Copper Limited vs Bhagawati Gas Limited [Civil Appeal No. 7454/2018]. A bank guarantee of ₹400 lakhs through Canara Bank was not renewed, and fixed deposits aggregating ₹250 lakhs out of ₹400 lakhs maintained as security were redeemed. The renewal is still pending.

The auditor's conclusion is qualified stating they are unable to comment on the consequential impact of these matters on the financial statements.

Significant Accounting Notes

Note 6 - Other Income Write-back: The Company recognized ₹47.51 lakhs as other income from write-back of liabilities:

  • Q1 FY27: ₹29.13 lakhs (₹27.00 lakhs loans + ₹2.13 lakhs other credit balances) written back as these liabilities remained unclaimed for more than 10 years
  • Q2 FY27: ₹18.38 lakhs written back based on reconciliation and communication with parties, assessed as no longer payable

Note 7 - Vivad se Vishwas II Receivable: The Company continues to carry a receivable of ₹322.44 lakhs under the "Vivad se Vishwas II (Contractual Disputes) Scheme" from Hindustan Copper Limited. The claim remains pending for processing and settlement by concerned authorities.

Note 9 - Tax Provision: No provision for current tax expense has been recognized based on management's assessment of estimated tax liability, availability of carried forward losses and unabsorbed depreciation.

Note 10 - Labour Codes Implementation: The implementation of new Labour Codes has not resulted in any material incremental impact on gratuity obligations. The Company is evaluating impact on other areas including contract workforce.