Financial Performance Highlights

Quarter Ended September 30, 2026 (Q2 FY2026):

  • Revenue from Operations: ₹1604.06 lakhs (compared to ₹1071.96 lakhs in Q2 FY2025)
  • Total Revenue: ₹1605.55 lakhs
  • Cost of Material Consumed: ₹1312.70 lakhs
  • Employee Benefits Expense: ₹109.10 lakhs
  • Finance Cost: ₹84.79 lakhs
  • Profit Before Tax: ₹1.51 lakhs (compared to ₹0.72 lakhs in Q2 FY2025)
  • Net Profit: ₹1.51 lakhs
  • Basic & Diluted EPS: ₹0.002 (not annualized)

Half Year Ended September 30, 2026 (H1 FY2026):

  • Revenue from Operations: ₹3223.90 lakhs
  • Total Revenue: ₹3227.65 lakhs
  • Profit Before Tax: ₹19.82 lakhs
  • Net Profit: ₹19.82 lakhs
  • Basic & Diluted EPS: ₹0.23

Comparative Figures:

  • Full Year FY2026 (Audited): Revenue ₹4439.52 lakhs, Net Loss ₹112.64 lakhs, EPS ₹-1.22
  • Paid-up Equity Share Capital: ₹1100.11 lakhs (face value ₹10)

Balance Sheet Position as at September 30, 2026

  • Total Assets: ₹7411.89 lakhs (vs ₹7025.04 lakhs as at March 31, 2026)
  • Inventories: ₹4065.64 lakhs
  • Trade Receivables: ₹1184.31 lakhs (Current) + ₹352.48 lakhs (Non-current)
  • Cash and Cash Equivalents: ₹342.50 lakhs
  • Total Borrowings: ₹695.68 lakhs (Non-current) + ₹2659.96 lakhs (Current)
  • Total Equity: ₹2536.79 lakhs

Significant Auditor Qualifications

The statutory auditors, M/s. Mukund and Rohit, issued a limited review report with several important qualifications:

1. GST Demand Order: Received Order No. GEXCOM/ADIN/GST/ADC/749/2026 dated November 5, 2026, from Additional Commissioner, Central GST and Central Excise, Vadodara-II Commissionerate covering FY2021-22 to FY2024-25:

  • Input Tax Credit demand: ₹31,57,14,784 (IGST ₹24,95,050; CGST ₹15,66,09,867; SGST ₹15,66,09,867)
  • Penalty: ₹55,06,08,824 (IGST ₹19,85,01,326; CGST ₹17,60,53,749; SGST ₹17,60,53,749)
  • Applicable interest also demanded
  • No provision made in books as at reporting date

2. SEBI Investigation: Initiated by Enquiries & Adjudication Department-3 of SEBI vide letter No. SEBI/EAD3/MS/SM/DIS/23926/2026 dated September 11, 2026 against:

  • The Company
  • Managing Director
  • Ex-CFO/Non Executive Director

Related to the ongoing GST matter

3. Income Tax Investigation: Investigation Wing of Income Tax Vadodara initiated investigation consequent to GST proceedings. No amount ascertained as of date.

4. Inventory Valuation: Management assessed inventory ageing and obsolete items but carried at same carrying amount. No provision made for obsolete/slow moving inventories. Exact value not available with auditors.

5. Legal Proceedings: Vendor initiated legal proceedings u/s 138 of Negotiable Instruments Act for ₹18.00 crore, pending before competent court at Tirupati, A.P. Management believes likelihood of crystallization not probable, hence no provision made.

Preferential Issue Proceeds Utilization

Funds raised through preferential issue on December 13, 2025: ₹11,17,99,980

Utilization as at September 30, 2026:

  • Working Capital Requirements: ₹6,70,79,988 (fully utilized as per original allocation)
  • Capital Expenditure: ₹1,34,99,943 (against original allocation of ₹2,23,59,996)
  • General Purpose: ₹2,23,59,996 (fully utilized)

No deviation/variation reported in fund utilization for the quarter. Funds are fully utilized as per 31st March 2026 allocation.

Additional Information

  • The financial results were reviewed by the Audit Committee and approved by the Board
  • Results published as per Regulation 47(1)(b) of SEBI LODR
  • Company operations limited to one segment
  • Cash flow statement shows net cash from operating activities: ₹-139.17 lakhs for H1 FY2026