B9 Beverages, maker of Bira 91, has seen its net worth fully eroded as accumulated losses rose to ₹2,117.98 crore in FY24, up from ₹1,473.01 crore in FY23.
Auditor Walker Chandiok & Co highlighted the steep rise in losses in its FY24 audit report.
The auditor warned that the company faces market, credit, and liquidity risks that could affect the fair value of its financial instruments.
B9 Beverages, the maker of Bira 91-branded beers, has lost its entire net worth as accumulated losses rose to ₹2,117.98 crore by the end of March 2024, compared to ₹1,473.01 crore in FY23, according to the company’s auditor, Walker Chandiok & Co, a network firm of Grant Thornton International.
In a report accompanying the company’s FY24 annual report, the auditor said, “The Company is exposed to market risk, credit risk, and liquidity risk, which may impact the fair value of its financial instruments.”
During the year ended 31 March 2024, B9 Beverages incurred a net loss of ₹644.97 crore (FY23: ₹391.83 crore) and recorded negative cash flow from operations of ₹42.26 crore (FY23: ₹241.37 crore). As of that date, the company’s accumulated losses stood at ₹2,117.98 crore (FY23: ₹1,473.01 crore), "a result of which the net worth of the Company is fully eroded", the note stated.
The report further highlighted that the company’s current liabilities exceeded its current assets by ₹487.56 crore (FY23: ₹87.33 crore) as of 31 March 2024.
“These events and conditions indicate the existence of material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern,” the auditor’s report added.
B9 Beverages has not yet filed its FY2025 financials. However, Walker Chandiok & Co noted that management remains confident about the company’s financial stability, citing recent capital infusions, ongoing investments, stronger operations, and expected funding from new investors as factors likely to enhance cash flows and support the company in meeting its obligations.
The auditor’s note was first reported by The Economic Times, based on B9 Beverages’ publicly available annual report. The company’s founder, Ankur Jain, told the publication that it is not unusual for businesses at the growth stage to have current liabilities exceeding current assets.
The company, which gained attention for its craft beers after launching in 2015, is now facing multiple challenges, including steep job cuts and halted production.
Last month, over 250 employees wrote to B9 Beverages’ board and major investors, Japanese beverage firm Kirin Holdings and Peak XV Partners, seeking a “leadership change”, citing delays in salary and reimbursement payments.
