Financial Performance
HMT Limited reported a consolidated net loss of ₹1,315.42 crore for FY2025-26, with negative equity of ₹20,266.66 crore, reflecting continued financial distress. Standalone performance showed revenue of ₹25.96 crore with profit of ₹16.69 crore, while subsidiaries dragged group performance to a loss of ₹128.94 crore on revenue of ₹142.97 crore.
Auditor Qualifications & Internal Controls
Auditors issued a qualified opinion citing multiple material issues: non-compliance with Ind AS on impairment and inventory valuation, lack of external confirmations for financial balances, unreconciled GST input tax credits, and failure to apply expected credit loss models. Material weaknesses in internal controls were identified across inventory valuation, GST reconciliation, fixed asset verification, and financial balance confirmations.
AGM & Corporate Governance
The 73rd Annual General Meeting is scheduled for September 30, 2026 via video conference to approve financial statements and appoint key directors including Chairman & Managing Director Shri. N. Ramesh Kumar and Director (Finance) Smt. Sameena Kohli. The company faces SEBI non-compliances including insufficient independent directors, improperly constituted committees, and delayed financial result submissions resulting in ₹50.70 lakhs in fines.
Debt & Contingencies
The company has defaulted on ₹64,171.74 lakhs of interest-free Government of India loans with installments overdue since 2018-2022. Contingent liabilities total ₹46,765.47 lakhs including tax claims, employee disputes, guarantees, and pending stock exchange penalties. MSME dues amount to ₹850.63 lakhs principal plus ₹210.66 lakhs interest.
Subsidiary Performance & Future Outlook
HMT Machine Tools Limited reported significant losses of ₹148.46 crore, while HMT (International) Limited showed growth with turnover of ₹46.43 crore. HMT Watches Limited was struck off from the Register of Companies. The company outlook remains dependent on government support, with growth potential seen in dairy processing equipment and machine tools markets driven by manufacturing investments and government schemes.