Financial Results Summary

Quarter Ended September 30, 2026 (Q2 FY2027)

  • Revenue from operations: ₹1,176.119 lakhs
  • Other income: ₹60.742 lakhs
  • Total income: ₹1,236.861 lakhs
  • Total expenses: ₹4,197.732 lakhs
  • Profit before tax: ₹39.129 lakhs
  • Tax expense: ₹14.928 lakhs
  • Net profit: ₹24.201 lakhs
  • Earnings per share (basic and diluted): ₹0.28
  • Other comprehensive income: ₹0.708 lakhs
  • Total comprehensive income: ₹24.909 lakhs

Half-Year Ended September 30, 2026 (H1 FY2027)

  • Revenue from operations: ₹1,317.025 lakhs
  • Other income: ₹126.783 lakhs
  • Total income: ₹1,443.808 lakhs
  • Total expenses: ₹1,452.211 lakhs
  • Loss before tax: ₹8.403 lakhs
  • Tax benefit: ₹0.086 lakhs
  • Net loss: ₹8.317 lakhs
  • Earnings per share (basic and diluted): -₹0.10
  • Other comprehensive income: ₹1.417 lakhs
  • Total comprehensive loss: ₹6.900 lakhs

Comparative Performance

  • Q2 FY2027 profit of ₹24.201 lakhs vs. Q1 FY2027 loss of ₹32.518 lakhs
  • H1 FY2027 loss of ₹8.317 lakhs vs. H1 FY2026 loss of ₹62.722 lakhs (improvement)
  • Corresponding quarter previous year (Q2 FY2026): Net profit of ₹21.442 lakhs

Board and Committee Changes

The Board of Directors meeting held on November 4, 2026 (10:30 AM to 12:30 PM) approved:

  • Appointment of Sri M Gopalakrishna, I.A.S. (Retd) as Chairman of the Nomination and Remuneration Committee effective November 4, 2026, replacing Sri G S V Prasad who resigned as Chairman on September 24, 2026
  • Induction of Sri P Venkateswara Rao as Member of the Nomination and Remuneration Committee

Current Committee Composition

1. Sri M Gopalakrishna - Chairman (Non-Executive & Independent Director)

2. Sri G S V Prasad - Member (Non-Executive & Independent Director, Chairman until September 24, 2026)

3. Sri MSR VK Ranga Rao - Member (Non-Executive & Non-Independent Director)

4. Sri P Venkateswara Rao - Member (Non-Executive & Independent Director)

Financial Position (as of September 30, 2026)

  • Total assets: ₹61,607.07 lakhs (vs. ₹62,310.64 lakhs as of March 31, 2026)
  • Equity share capital: ₹849.716 lakhs (unchanged)
  • Other equity: ₹4,196.932 lakhs (vs. ₹4,203.831 lakhs as of March 31, 2026)
  • Non-current assets: ₹20,848.70 lakhs
  • Current assets: ₹40,758.37 lakhs
  • Current liabilities: ₹2,623.88 lakhs

Cash Flow Analysis (Half-Year Ended September 30, 2026)

  • Net cash from operating activities: -₹2,379.44 lakhs
  • Net cash from investing activities: ₹3,396.91 lakhs
  • Net cash from financing activities: -₹843.33 lakhs
  • Net increase in cash: ₹174.14 lakhs
  • Closing cash balance: ₹39.838 lakhs

Significant Notes and Disclosures

Accounting Standards and Review

  • Financial results prepared in accordance with Indian Accounting Standards (Ind AS)
  • Statutory auditors (C V Ramana Rao & Co.) conducted limited review pursuant to Regulation 33 of SEBI Listing Regulations
  • Review report issued on November 4, 2026, confirming compliance with disclosure requirements

Operational Context

The company noted that while it earned a profit of ₹39.129 lakhs before tax for Q2 FY2027, it incurred a half-year loss of ₹8.403 lakhs due to the Q1 loss of ₹475.32 lakhs.

Segment Reporting

Segmental reporting as per Ind AS-108 is not applicable as the company is engaged in manufacture of a single line of product.

Land Lease Dispute with Visakhapatnam Port Authority (VPA)

  • Ongoing dispute since FY2019-20 regarding renewal of land lease for plant location
  • Company submitted technical and financial bid as sole bidder for tender floated by VPA
  • VPA initially accepted bids but later cancelled tender and issued re-tender
  • Company filed writ petition in Andhra Pradesh High Court challenging VPA's actions
  • High Court allowed petition on February 25, 2022, directing VPA to execute lease deed
  • VPA appealed to division bench of Andhra Pradesh High Court
  • Division bench delivered judgment on November 3, 2025
  • Company has addressed letter to VPA for issue of tender as per Land Lease Policy guidelines 2015
  • Pending execution of lease deed, company provisionally accounts for lease using bid amount in accordance with Ind AS 116

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