Mishtann Q1 FY27: consolidated revenue crashes 95% YoY, PAT down 99% amid SEBI probe

Mishtann Foods' consolidated Q1 FY27 (quarter ended 30 June 2026) revenue was ₹18.29 Cr, down 95.3% year-on-year from ₹386.05 Cr in Q1 FY26, and consolidated PAT was ₹0.49 Cr, down 99.4% from ₹82.66 Cr. Standalone tells the same story (revenue ₹18.29 Cr, PAT ₹0.50 Cr) — the two are within 2% of each other, so this is a company-wide collapse, not a subsidiary-specific issue. Basic EPS on both bases rounds to ₹0.00 against ₹0.77 a year ago. There is no exceptional item in either period, so the entire swing sits in ordinary operations. The margin bridge is simple: NPM fell to 2.67% from 21.41% YoY and OPM (PBT/revenue) to 4.21% from 21.70%, a compression that tracks the revenue drop almost proportionally rather than reflecting a cost blowout — cost of materials consumed fell in lockstep with revenue (₹16.84 Cr this quarter vs ₹250.39 Cr a year ago, consolidated). Sequentially, revenue is also down 40.7% from the preceding (audited) quarter's ₹30.84 Cr, so this is the second consecutive quarter of steep decline rather than a one-off dip against an unusually strong base. The context matters more than the numbers here. Statutory auditor H Thakkar & Co issued a repetitive Qualified Opinion on both statements, citing a SEBI Interim Order-cum-Show Cause Notice (December 2024) alleging fictitious sales and purchase transactions from FY17-18 to FY23-24 and misutilisation of ₹49.90 Cr in rights-issue proceeds; unprovided expected-credit-loss on ₹593.71 Cr of trade receivables (97% of total assets as of September 2024); a disputed ₹206.84 Cr GST demand (company has filed a Writ Petition in the Gujarat High Court, April 2025); and a disputed ₹117.44 Cr income-tax demand. The auditor separately flags these matters as casting material uncertainty on the company's going-concern status, even as management maintains the results are prepared on a going-concern basis. No analyst or brokerage estimates for this quarter turned up in a web search — unsurprising for a micro-cap under active SEBI investigation — so vsStreet is unknown; the company also has no prior stated guidance on record, so there is nothing to grade the print against, and no management press release was available in the filing to cross-check its framing. On the same day as this result, Independent Director and Audit Committee Chairperson Rainy Ramesh Singhi resigned (effective close of business, 8 August 2026, citing personal reasons), and the board reconstituted all five committees around Kush Shah, Ashish Agarwal and Rajesh Sutaria. Combined with the SEBI notice, the resignation and reconstitution add a governance dimension to a quarter already dominated by the scale of the revenue and profit decline; whether the ~₹18-31 Cr revenue run-rate of the last two quarters — a fraction of the ~₹386 Cr level a year ago — is a new normal or a further slide is the question the next print needs to answer.