Key Details of Amendment

  • Date of Original Intimation: 23 June 2026
  • Date of Revised Submission: 17 July 2026
  • Reason for Revision: Rectification of an inadvertent clerical omission
  • Nature of Omission: Purely unintentional and administrative, does not affect financial statements, financial results, or any material information
  • Financial Impact: No impact on financial position or performance of the Company
  • Other Changes: No other changes made to the Annual Report

Compliance Actions

  • Revised Directors' Report submitted to BSE Limited
  • Document made available on company website as per SEBI LODR requirements

Financial Performance Highlights (FY 2025-26)

  • Total Income: ₹541.42 million (25.35% growth from ₹431.92 million in FY 2024-25)
  • Profit Before Tax (PBT): ₹72.56 million (compared to ₹88.09 million in FY 2024-25)
  • Profit After Tax (PAT): ₹49.32 million (compared to ₹66.41 million in FY 2024-25)
  • EBITDA: ₹84.6 million
  • Current Ratio: 12.67x (improved from 2.63x)
  • Debt-Equity Ratio: 0.00004x (improved from 0.25x)

Capital Structure Changes

  • IPO Completion: Successfully completed Initial Public Offering and listed on BSE SME on 3 October 2025
  • Shares Issued: 33,15,000 equity shares of face value ₹10 each at issue price of ₹135 per share
  • Total Paid-up Capital: ₹137.54 million as of 31 March 2026 (₹104.39 million as of 31 March 2025)
  • Promoter Holding: Reduced to 57.34% from 78.75% due to IPO

Strategic Developments

  • International Expansion: Incorporated wholly-owned subsidiary Earkart Inc. in United States (non-operational as of 31 March 2026)
  • ESOP Scheme: Shareholders approved "Earkart Limited ESOP Scheme 2025" for up to 8,25,236 options
  • Governance Enhancements: Strengthened internal governance and compliance processes post-listing

Operational Metrics

  • Employee Strength: 58 permanent employees as of 31 March 2026
  • CSR Expenditure: ₹9,14,633 towards PM CARES Fund and educational initiatives
  • Segment Focus: Healthcare and pharmaceutical product distribution

Key Financial Position (as of 31 March 2026)

  • Total Equity: ₹64.35 million
  • Total Assets: ₹69.49 million
  • Current Assets: ₹216.87 million (cash and equivalents)
  • Trade Receivables: ₹210.69 million
  • Inventory: ₹109.18 million

Auditor Findings

  • Statutory Auditors: TIMSI & Associates issued unmodified opinion
  • Key Audit Matter: Temporary funding of promoter's IPO expenses (₹56.34 lakhs) recovered on 27 May 2026 with interest
  • Secretarial Audit Observations:
  • Non-maintenance of Structured Digital Database for UPSI
  • Non-maintenance of cost records as required under Companies Act
  • Delay in filing Form FC for overseas subsidiary incorporation

Corporate Governance

  • Board Composition: 7 directors (3 executive, 4 independent)
  • Board Meetings: 10 meetings held during FY 2025-26
  • Committee Meetings: Audit Committee (7), NRC (1), Stakeholders Relationship Committee (1)
  • Director Retirement: Mr. Rahul Salesha (DIN: 09540291) retires by rotation, eligible for reappointment

AGM Details

  • Date: 15 July 2026 at 3:00 PM IST
  • Mode: Video Conferencing/Other Audio-Visual Means
  • Business:

1. Adoption of audited financial statements for FY 2025-26

2. Reappointment of Mr. Rahul Salesha as director

3. Ratification of "Amended and Restated Earkart ESOP Scheme 2025-Amended 2026"

ESOP Scheme Details

  • Maximum Options: 8,25,236 equity shares
  • Exercise Price: ₹10 per share (face value)
  • Vesting Period: Minimum 1 year, over 4 years (25% after 1 year, remainder quarterly over 3 years)
  • Eligibility: Employees (excluding promoters, promoter group, independent directors, MD)
  • Exercise Period: 10 years from vesting or as per grant letter

Related Party Transactions

  • Transactions with promoters and KMPs at arm's length
  • Key managerial personnel remuneration:
  • Rohit Misra (MD & CEO): ₹92.41 lakhs
  • Monika Misra (Whole-time Director): ₹52.80 lakhs
  • Ajay Kumar Giri (CFO): ₹26.95 lakhs
  • Rahul Salesha (Director): ₹42.22 lakhs

Risk Factors Identified

  • Regulatory risk in healthcare/pharmaceutical sector
  • Competitive market pressures
  • Supply chain disruptions
  • Economic conditions impacting growth
  • Technology and cybersecurity risks

Outlook

Company remains optimistic about long-term growth prospects in healthcare distribution sector, focusing on operational efficiencies, technology adoption, and international expansion through Earkart Inc.