Financial Results Approval

The Board of Directors, based on Audit Committee recommendation, approved the unaudited standalone and consolidated financial results for the half year ended September 30, 2026. Mr. Narendra Sanghvi, chairperson, was authorized to sign the financial results as per Regulation 33(2)(b).

Standalone Financial Performance (Amounts in ₹ Thousand)

  • Revenue from operations: ₹56,892.01 (vs. ₹41,274.57 in H1 FY26 - 37.8% increase)
  • Other income: ₹1,891.24 (vs. ₹989.00 in H1 FY26)
  • Total revenue: ₹58,783.25 (vs. ₹42,263.57 in H1 FY26)
  • Total expenses: ₹47,490.88 (vs. ₹32,176.00 in H1 FY26)
  • Profit before tax: ₹11,292.37 (vs. ₹10,058.57 in H1 FY26)
  • Tax expense: ₹1,884.92 (vs. ₹756.99 in H1 FY26)
  • Net profit after tax: ₹9,407.48 (vs. ₹9,301.58 in H1 FY26)
  • Earnings per share (basic and diluted): ₹0.90 (vs. ₹0.89 in H1 FY26)

Consolidated Financial Performance (Amounts in ₹ Thousand)

  • Revenue from operations: ₹94,404.28 (vs. ₹60,834.17 in H1 FY26 - 55.2% increase)
  • Other income: ₹2,108.76 (vs. ₹1,093.54 in H1 FY26)
  • Total revenue: ₹96,513.03 (vs. ₹61,927.71 in H1 FY26)
  • Total expenses: ₹77,202.89 (vs. ₹56,335.94 in H1 FY26)
  • Profit before tax: ₹19,270.14 (vs. ₹5,591.77 in H1 FY26 - 244.6% increase)
  • Tax expense: ₹3,129.46 (vs. ₹888.31 in H1 FY26)
  • Net profit after tax: ₹16,140.68 (vs. ₹4,703.46 in H1 FY26 - 243.2% increase)
  • Earnings per share (basic and diluted): ₹1.55 (vs. ₹0.45 in H1 FY26)

Balance Sheet Position (Standalone as of September 30, 2026)

  • Share capital: ₹1,04,158.80 (unchanged)
  • Reserves and surplus: ₹16,707.18 (vs. ₹7,299.75 as of March 31, 2026)
  • Total equity: ₹1,20,865.98 (vs. ₹1,11,458.55 as of March 31, 2026)
  • Cash and bank balances: ₹31,748.88 (vs. ₹34,708.28 as of March 31, 2026)
  • Total assets: ₹1,42,773.37 (vs. ₹1,34,219.36 as of March 31, 2026)

Cash Flow Statement (Standalone H1 FY27)

  • Net cash from operating activities: ₹6,383.99
  • Net cash used in investing activities: ₹(9,876.56)
  • Net decrease in cash: ₹(3,492.57)
  • Closing cash balance: ₹8,677.64

IPO Proceeds Utilization

The Board noted the statement of utilization of issue proceeds for the half year ended September 30, 2026, pursuant to Regulation 32. The company raised ₹1,896.12 lakhs through IPO in November 2017.

Utilization Status as of September 30, 2026

  • Total amount raised: ₹1,896.12 lakhs
  • Total amount utilized: ₹1,713.52 lakhs
  • Pending utilization: ₹139.32 lakhs
  • No deviations or variations in utilization of funds

Breakup of Utilization

  • Business expansion (outlets/distribution): ₹294.56 lakhs utilized of ₹771.70 lakhs allocated
  • Business expansion (acquisitions/new brands): ₹380.85 lakhs utilized
  • Marketing and sales promotion: ₹500.00 lakhs fully utilized
  • Strategic investments: ₹71.42 lakhs utilized of ₹100.00 lakhs allocated
  • General corporate purpose: ₹284.42 lakhs fully utilized
  • Issue expenses: ₹225.55 lakhs utilized of ₹240.00 lakhs allocated

The Audit Committee confirmed that IPO proceeds have been utilized in accordance with the objects stated in the prospectus.

Internal Auditor Reappointment

The Board, on Audit Committee recommendation, reappointed M/s. S K Shah & Co., Chartered Accountants (FRN: 148442W) as Internal Auditors for the period from October 1, 2026 to March 31, 2027 at a professional fee of INR 80,000.

Auditor Profile

M/s. S K Shah & Co. is described as a distinguished CA firm with experience serving over 25 companies, completing 50+ valuation assignments, handling 100+ tax litigations, and conducting 50+ internal audit engagements. Their services include bookkeeping, accounting, audit, taxation, secretarial compliance, valuation, virtual CFO services, and tax litigation.

Key Notes and Disclosures

  • The financial results were reviewed by the Audit Committee and approved by the Board on November 3, 2026
  • The company experienced good recovery in business with improved financial performance and liquidity position
  • Management has secured cash reserves to meet obligations and operational needs
  • Financial statements prepared on a going concern basis

Subsidiary Investments

  • Sanghvi Beauty and Salons Private Limited: Investment of ₹100,000 in equity capital + unsecured loan of ₹4,61,68,064. Negative net worth of ₹(2,75,65,333) as of September 30, 2026
  • Sanghvi Fitness Private Limited: Investment of ₹97,500 in equity capital + unsecured loan of ₹67,62,643. Negative net worth of ₹(61,85,710) as of September 30, 2026
  • Management considers the net worth erosion temporary and no provision warranted, expecting business revival

Auditor Emphasis of Matter

Komandoor & Co. LLP drew attention to Notes 5 and 6 regarding no provision for investments in and loans to subsidiaries despite significant accumulated losses and negative net worth. Management believes these are temporary disruptions and is confident of business revival.

CEO/CFO Certification

Dr. Vijay Aggarwal (CEO) and Mr. Laxmi Narayan Rathi (CFO) certified that:

  • Financial results don't contain materially untrue statements or omissions
  • Results present true and fair view of company's affairs
  • No fraudulent, illegal, or Code of Conduct violative transactions
  • Internal controls for financial reporting are established and effective
  • No significant changes in internal controls or accounting policies
  • No instances of significant fraud involving management or employees

Additional Information

  • Results and disclosure hosted on company website: www.sanghvibrands.com
  • Submitted in XBRL mode to BSE
  • Previous periods' figures regrouped where necessary for consistency