Vaxfab Enterprises FY26: A ₹131 Crore Trader Whose Own Auditors Declined to Vouch for the Books

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1 — At a Glance

Vaxfab Enterprises closed FY26 with sales of ₹131 crore — up from ₹17 crore two years earlier — and a net loss of ₹4.63 crore. That is a company growing revenue at a three-year pace near 99% while its bottom line went the other way, a profit swing of roughly minus-1,045% over the trailing period.

Then there is the sentence that reframes everything else. The statutory auditors, Chandabhoy & Jassoobhoy, issued a disclaimer of opinion on both the standalone and consolidated FY26 results. A disclaimer is not a stern footnote; it is an auditor stating they could not obtain enough evidence to say whether the numbers are true and fair. The stated grounds include books of account not adequately maintained by prior management, unsecured loans passed around without formal agreements, and balance confirmations from debtors and creditors that were never made available.

Receivables sit at ₹108.5 crore against ₹131 crore of sales — debtor days of 302. Borrowings climbed from ₹0.6 crore to ₹44.2 crore in the span the balance sheet covers.

A trading company’s entire job is knowing who owes it money. When the auditor can’t confirm those balances, the question writes itself — and the market still assigns it a ₹157 crore tag.

2 — Introduction

Vaxfab Enterprises Ltd was incorporated in 1983 and, until recently, answered to a different name: it was Ellora Trading Limited until 24 August 2022. The business, per its own filings, is the trading of agricultural commodities, with a stated plan to diversify into textile products and clothing under one corporate roof.

The company has been busy on the corporate-action front. In FY22 it lifted authorised equity capital from ₹1.45 crore to ₹9 crore and rewrote its objects clause to cover everything from air conditioners to flour machinery. In February 2023 it acquired roughly 20.51% of Vaxtex Cotfab Limited — notably, for consideration other than cash, settled against the sale of goods — and pushed through a rights issue of 72 lakh shares.

The most recent chapter is the FY26 audited results, approved by the board on 30 May 2026 and then revised, with the auditors declining to express an opinion. The company operates in a single reported segment: trading of goods.

3 — Business Model: WTF Do They Even Do?

Buy things, sell things, book the difference. That is the model in full. Vaxfab is a trading house in agri commodities, with clothing and textiles pencilled in as the next aisle.

Trading is a thin-margin business by nature, and Vaxfab’s own numbers agree emphatically: operating margins have ranged from a stated 3% in FY23 down to a negative 3.68% in FY26. There is no factory moat here, no brand pricing power — the entire edge in commodity trading is working capital discipline and knowing your counterparties.

Which is where things get interesting for a company whose auditors flagged that it grants and receives unsecured loans without written agreements, and in some cases without charging interest. For a trader, the loan book is the business. Standalone records show three permanent employees on the rolls and one business segment — a ₹131 crore revenue line run, on paper, very lean.

The consolidation adds a subsidiary and an LLP, plus ₹12.4 crore of goodwill that appears on the consolidated balance sheet with no operating story attached to it in the record.

Does a trading company need a factory to be a real business, or just receivables it can actually collect?

4 — Financials Overview

Figures are consolidated, in ₹ crore.

The December 2025 quarter carried Other Income of negative ₹3.37 crore — the non-operating line, usually a helper, was the anchor dragging PAT