Financial Results Overview
The Board of Directors met on August 07, 2026, and approved the unaudited financial results for the quarter ended June 30, 2026.
Key Financial Figures (in ₹ lakhs):
- Revenue from Operations: ₹6,351.55 (Q1 FY27) vs. ₹5,800.50 (Q1 FY26)
- Other Income: ₹74.65
- Total Income: ₹6,426.20
- Total Expenses: ₹6,196.92
- Profit Before Tax: ₹229.28
- Total Tax Expense: ₹63.54 (comprising Current Tax of ₹128.12 and Deferred Tax credit of ₹(64.58))
- Profit After Tax: ₹165.74
- Other Comprehensive Income (net of tax): ₹(2.49)
- Total Comprehensive Income: ₹163.25
- Paid-up Equity Share Capital: ₹750.00 (Face value ₹10 each)
- Earnings Per Share (Basic and Diluted): ₹2.21
Comparative Figures:
- Previous Quarter (Q4 FY26, Unaudited): PAT of ₹172.85, EPS of ₹2.30
- Year Ended March 31, 2026 (Audited): PAT of ₹348.68, EPS of ₹4.65
Audit Review and Qualification
The statutory auditors, BSR & Co., issued a Limited Review Report with a Modified Opinion (qualified) on the financial results.
The qualification pertains to the company's non-compliance with the Battery Waste Management Rules, 2022 (BWMR). The company, through its industry association, has filed representations with the Ministry of Environment, Forest & Climate Change (MoEFCC) seeking revisions to the prescribed targets, compliance costs, and an extension of timelines. The Central Pollution Control Board (CPCB) has notified rates for environmental compensation for non-fulfillment. Pending clarification from the government, the company has not estimated or recognized any provision for this obligation. The auditors were unable to obtain sufficient audit evidence to determine if any adjustment was necessary. This is a repetitive qualification, as the audit opinion for the year ended March 31, 2026, was also qualified on this matter.
Management's View on Qualification Impact: Management is unable to estimate the financial impact as the provision amount is not quantifiable. Reasons cited include:
1. The compliance cost in the notification is based on a different battery chemistry (Lithium vs. Zinc) and is considered exorbitant and unrelated.
2. Representations made to the government through the RECEIC coalition are ongoing with no resolution.
3. A writ petition filed by the Indian Battery Manufacturers Association (IBMA) and others challenging the Battery Waste Management Amendment Rules, 2024, and E-Waste Rules, 2022, is under consideration by the Delhi High Court.
Matter of Emphasis: Fire Incident
The auditors' report also contains a matter of emphasis regarding a fire incident. A fire occurred on the intervening night of July 5 and July 6, 2026, at the company's manufacturing facility in Pithampur. The incident resulted in partial damage to property, plant, equipment (PPE), and inventory. As this is a non-adjusting subsequent event, no adjustments have been made in these financial results. The company is insured for the loss, and the assessment of damages and insurance claim submission is underway. Management's assessment, including cash flow projections, concludes the incident is not expected to impact the company's ability to continue as a going concern. Restoration activities and business continuity arrangements are being implemented.
Board Decisions Approved
1. Shifting of Registered Office: The board approved, subject to shareholder approval, the shifting of the company's Registered Office from Vadodara, Gujarat, to Pithampur, District Dhar, Madhya Pradesh. This will require an alteration to Clause II of the Memorandum of Association.
2. Transfer of Leasehold Rights: The board granted in-principle approval for the transfer of leasehold rights, title, and interest in the GIDC industrial plot located at Vadodara.
Other Notes to Financial Results
- Impact of Labour Codes: The company recognized an exceptional item of ₹339.77 lakhs in the year ended March 31, 2026, related to the incremental impact of the newly notified Labour Codes.
- Segment Reporting: The company operates in a single reportable segment: "Batteries".
- Figures for Quarter ended March 31, 2026: These are balancing figures between the audited annual figures and the reviewed year-to-date figures up to the third quarter of FY26.