Key Quantitative Figures

Financial Results for Quarter Ended June 30, 2026 (in ₹ Lakhs):

  • Revenue from operations: ₹37,039.74
  • Other income: ₹425.09
  • Total Income: ₹37,464.83
  • Total Expenses: ₹37,181.05
  • Profit/(loss) before tax: ₹283.78
  • Tax expense: ₹(86.12) current tax + ₹(36.00) deferred tax + ₹3.32 prior period taxes = ₹(118.80)
  • Net profit after tax for continuing operations: ₹(234.18) [Net Loss]
  • Total Comprehensive Income: ₹(319.63)
  • Paid-up Equity Share Capital: ₹3,824.95 lakhs (Face value Re. 1/- each)
  • Earnings Per Share (Basic) for continuing operations: ₹(0.06)
  • Earnings Per Share (Diluted) for continuing operations: ₹(0.06)

Comparative Figures (₹ Lakhs):

| Period | Revenue | Net Profit | EPS (₹) |

| Q1 FY27 (Jun 2026) | 37,464.83 | (234.18) | (0.06) |

| Q4 FY26 (Mar 2026) | 6,218.89 | 190.19 | 0.05 |

| Q1 FY26 (Jun 2025) | 15,930.59 | 161.18 | 0.05 |

| Q4 FY25 (Mar 2025) | 6,196.77 | 359.04 | 0.09 |

Dates of Action

  • Board Meeting Date: August 12, 2026 (commenced 6:30 PM, concluded 7:15 PM)
  • Statutory Auditor resignation effective: August 12, 2026
  • New Statutory Auditor appointment: August 12, 2026 (subject to shareholder approval)
  • Independent Director re-appointment term: February 22, 2027 to February 21, 2032
  • ESOP allotment date: June 9, 2026 (178,200 shares allotted)

Parties Involved

Resigning Auditor:

  • M/s. P K N & Co., Chartered Accountants (FRN 137148W)

New Appointments:

  • Statutory Auditor: M/s. DTA & Associates, Chartered Accountants (FRN 140825W, Peer Review No.: 022772)
  • Internal Auditor: M/s. R J and Associates, Cost Accountants (Firm Registration No. 004690)
  • Cost Auditor: Ms. Reena K. Patadiya of M/s. Reena Patadiya & Co. (Firm Registration No. 004346)
  • Independent Director: Mr. Vinod Kanubhai Rana (DIN: 08160972)

Purpose/Rationale

Auditor Resignation:

M/s. P K N & Co. resigned due to "internal administrative and operational restructuring within our firm" specifically citing changes in availability and deployment of professional resources. They explicitly stated: "Our decision to resign is based on internal administrative and operational restructuring within our firm and is not on account of any disagreement with the management or those charged with governance of the Company, nor is it attributable to any matter relating to the Company's accounting policies, financial reporting, audit scope, access to information, management representations or availability of audit evidence."

New Appointments:

The board appointed new auditors based on recommendations from the audit committee and nomination and remuneration committee, considering factors including industry experience, technical expertise, and governance standards.

Capital Structure Impact

  • ESOP allotment of 178,200 equity shares (face value Re. 1/- each) on June 9, 2026
  • Paid-up share capital increased from 38,249,533 shares as of March 31, 2026 to 38,267,353 shares as of June 30, 2026
  • Additional grant of 214,930 employee stock options under ESOP Plan 2023 approved on June 9, 2026

Financial Impact

  • Q1 FY27 financial results show a net loss of ₹2.34 crore
  • Auditor change may involve transition costs (not quantified)
  • No material financial impact disclosed for other appointments

Forward-looking Information

  • 13th Annual General Meeting for FY26 will be scheduled
  • New statutory auditor appointment subject to shareholder approval at ensuing General Meeting
  • Independent director re-appointment subject to shareholder approval at ensuing Annual General Meeting

Additional Information

  • The company has a single reportable business segment (cotton manufacturing and export)
  • Financial results were reviewed by the Audit Committee and approved by the Board
  • Statutory auditor completed and issued: Audit Report dated April 20, 2026 for FY26, and Limited Review Report dated August 12, 2026 for Q1 FY27 prior to resignation
  • All disclosures are available on company website: www.axitacotton.com