Automobile Products of India posts Rs 46.62 lakh quarterly loss, net worth wiped out

Automobile Products of India Limited, an auto-sector company, has reported a net loss of Rs 46.62 lakh for the second quarter of 2026-27, the quarter ended September 30, 2026.

The auditors have written that the company's net worth has been completely eroded. They have also expressed uncertainty over whether the company will be able to continue operating.

According to the company's figures, revenue from operations between July and September 2026 stood at Rs 4.25 lakh, the same as in the corresponding quarter last year. Other sources brought in Rs 13.77 lakh, taking total income to Rs 18.02 lakh.

The biggest problem for the company is the cost of interest on borrowings. Finance cost for the quarter was Rs 40.92 lakh, more than double the total income. The burden of expenses is weighing heavily against income.

In comparison, the company had posted a loss of Rs 79.55 lakh in the previous quarter and Rs 47.62 lakh in the same quarter last year. The loss appears to have narrowed somewhat, but the company's condition still looks strained.

On September 30, 2026, the company's total equity was minus Rs 1,678.93 lakh. Long-term borrowings, which stood at Rs 1,708.89 lakh in March 2026, rose to Rs 1,775.39 lakh. The company has cash and bank balances of more than Rs 1,090 lakh, but it cannot be said that this amount resolves its financial difficulties.

The auditors have made clear that, to keep operating, the company has to depend on financial support from its holding company and promoters. This has raised questions over its future financial stability.

In the first half of the financial year, the company allotted 13,99,415 equity shares through a rights issue. Public shareholding then rose from 15.29 per cent to 34.36 per cent. This is an important change in terms of complying with the regulatory rules on minimum public shareholding.

Overall, raising income, managing the debt burden and achieving financial stability are the main challenges before the company. What happens next will depend on how much financial support the company gets and whether its operations improve.