Financial Results Performance

Quarter Ended September 30, 2026 (Q2 FY2026):

  • Revenue from Operations: ₹1,604.06 lakh
  • Other Income: ₹1.49 lakh
  • Total Revenue: ₹1,605.55 lakh
  • Profit before tax: ₹1.51 lakh
  • Net Profit: ₹1.51 lakh
  • Basic & Diluted EPS: ₹0.002 (not annualized)

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

  • Revenue from Operations: ₹3,223.90 lakh
  • Other Income: ₹3.75 lakh
  • Total Revenue: ₹3,227.65 lakh
  • Profit before tax: ₹19.82 lakh
  • Net Profit: ₹19.82 lakh
  • Basic & Diluted EPS: ₹0.23 (not annualized)

Comparative Performance:

  • Q2 revenue increased 49.6% YoY from ₹1,071.96 lakh in Q2 FY2025
  • Q2 net profit decreased from ₹17.72 lakh in Q1 FY2026 to ₹1.51 lakh
  • H1 revenue increased 43.8% YoY from ₹2,241.85 lakh in H1 FY2025

Balance Sheet Position (as at September 30, 2026)

  • Total Assets: ₹7,411.89 lakh
  • Inventories: ₹4,065.64 lakh (no provision for obsolete/slow-moving items)
  • Trade Receivables: ₹1,184.31 lakh (current) + ₹352.48 lakh (non-current)
  • Cash and Cash Equivalents: ₹342.50 lakh
  • Total Equity: ₹2,536.79 lakh
  • Total Borrowings: ₹695.68 lakh (non-current) + ₹2,659.96 lakh (current)
  • Trade Payables: ₹966.25 lakh (current) + ₹461.64 lakh (non-current)

Significant Regulatory and Legal Matters

1. GST Demand Order:

  • Order No. GEXCOM/ADIN/GST/ADC/749/2026 dated November 5, 2026
  • Issued by Additional Commissioner, Central GST and Central Excise, Vadodara-II Commissionerate
  • Period: FY 2021-22 to 2024-25
  • 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 of accounts as at reporting date

2. SEBI Investigation:

  • Initiated by Enquiries & Adjudication Department-3 of SEBI
  • Letter No. SEBI/EAD3/MS/SM/DIS/23926/2026 dated September 11, 2026
  • Show cause notice issued to Company, Managing Director, and Ex-CFO/Non Executive Director
  • Pertaining to ongoing GST matter

3. Income Tax Investigation:

  • Investigation Wing of Income Tax Vadodara initiated investigation
  • Consequent to GST department proceedings
  • Ongoing as on date, no amount ascertained

4. Inventory Assessment:

  • Management assessed inventory ageing and obsolete items
  • Carried at same carrying amount, no provision made for obsolete/slow-moving inventories
  • Auditors unable to comment on impact as exact value not available

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 liability crystallization is not probable
  • No provision made

Audit and Compliance Details

  • Financial results reviewed by Audit Committee and approved by Board of Directors
  • Board meeting held on November 13, 2026 (6:15 PM to 6:39 PM)
  • Limited Review Report issued by M/s. Mukund and Rohit, Chartered Accountants
  • Results prepared in accordance with Indian Accounting Standards (Ind AS)
  • Company operations limited to one segment

Funds Utilization Certificate

  • Preferential issue raised on December 13, 2025: ₹11,17,99,980
  • Funds fully utilized as per original objects: Working Capital (₹6,70,79,988), Capital Expenditure (₹2,23,59,996), General Purpose (₹2,23,59,996)
  • No deviation/variation in use of funds raised
  • Certificate issued by Mukund & Rohit Chartered Accountants dated November 13, 2026

#Tags: #AxelPolymers #Q2Results #GSTDemand #SEBIInvestigation #RegulatoryCompliance #Negative