The statutory auditor, Deloitte Haskins & Sells LLP, issued a limited review report with a qualification. They drew attention to Note 9 of the financial results, regarding concerns shared by the erstwhile Joint Managing Director about certain practices by the Chairman and Managing Director. The Audit Committee has engaged an independent external agency to carry out an impact assessment, which is ongoing as of the report date. Consequently, the auditor was unable to determine the effect this matter may have on the financial results.
Key Financial Figures (₹ in lakhs, Unaudited)
Quarter Ended June 30, 2026 (Q1 FY27):
- Revenue from operations: ₹21,564.94
- Other income: ₹40.64
- Total Income: ₹21,605.58
- Total Expenses: ₹21,585.65
- Cost of materials consumed: ₹11,205.51
- Employee benefits expense: ₹3,653.33 (Includes ₹11 lakhs remuneration for the Executive Director-Operations, approved by the Board on May 30, 2026, subject to shareholder approval)
- Finance costs: ₹324.88
- Depreciation: ₹508.22
- Other expenses: ₹5,865.89
- Profit before tax: ₹19.93
- Total tax expense: ₹5.05
- Profit for the period: ₹14.88
- Other comprehensive loss (net of tax): ₹(1.67)
- Total comprehensive income: ₹13.21
- Basic and diluted earnings per share (EPS): ₹0.10
Comparative Figures:
- Quarter Ended June 30, 2025 (Q1 FY26): Profit was ₹164.64 lakhs (EPS: ₹1.07). This represents a 91% decrease in profit YoY.
- Quarter Ended March 31, 2026 (Q4 FY26): Profit was ₹506.72 lakhs (EPS: ₹3.30). This represents a 97% decrease in profit QoQ.
- Year Ended March 31, 2026 (FY26): Audited profit was ₹1,650.41 lakhs.
Other Disclosures
- The company is primarily engaged in the Automotive Gears business, with no other reportable segments.
- The Government of India notified the four Labour Codes effective from November 21, 2025. The company assessed the incremental impact as not material, and it was recognized in FY26.
- The figures for the quarter ended March 31, 2026, are balancing figures between the audited annual figures and previously published unaudited year-to-date figures.
- During FY26, the company received communications questioning the citizenship status of Mr. Surinder Paul Kanwar, Chairman and Managing Director (CMD). The Board, based on an independent legal opinion (January 23, 2026), concluded his status remains unchanged pending any final order from the Central Government. Subsequently, the CMD received a communication about his passport revocation and is pursuing legal remedies.
- The Board of Directors recommended a final dividend of ₹1 per equity share (10%) at their meeting on May 30, 2026, subject to shareholder approval at the ensuing Annual General Meeting scheduled for August 13, 2026.
- Paid-up equity share capital remains unchanged at ₹1,535.51 lakhs (Face value ₹10 per share).