Company Overview

Shankara Buildpro Limited (NSE: BUILDPRO, BSE: 544517) submitted its Annual Report 2025-26 under SEBI Regulation 34, reporting its first full-year standalone financial results following the successful demerger from Shankara Building Products Limited.

Financial Performance

Standalone Results (FY26):

  • Revenue from Operations: ₹6,824.65 crores (vs ₹5,267.38 crores FY25)
  • Profit Before Tax: ₹173.21 crores (vs ₹101.07 crores FY25)
  • Profit After Tax: ₹127.56 crores (vs ₹78.16 crores FY25)
  • Earnings Per Share: ₹52.60 basic and diluted (vs ₹32.23 FY25)
  • Total Assets: ₹1,601.83 crores (vs ₹1,253.72 crores FY25)

Dividend Declaration & Corporate Actions

The Board recommended a final dividend of ₹5 per equity share (aggregating ₹12.12 crores) subject to shareholder approval at the 3rd Annual General Meeting scheduled for July 2, 2026. The company also proposed remuneration increases for three executive directors totaling ₹2.42 crores annually.

Demerger Details

The trading business was successfully transferred from Shankara Building Products Limited with appointed date of April 1, 2024, following NCLT approval on August 21, 2025. The scheme became effective on September 9, 2025, resulting in:

  • Demerger adjustment of ₹39.91 crore recognized in capital reserve
  • Allotment of 2,42,49,326 equity shares to shareholders of demerged company
  • 100% shares in demat form with 82.38% with NSDL and 17.62% with CDSL

Key Audit Matters

Auditors ASA & Associates LLP identified two critical areas requiring significant scrutiny:

1. Revenue Recognition: Examination of ₹6,824.65 crore revenue from building product sales, testing controls and cut-off procedures

2. Inventory Valuation: Verification of ₹475.30 crore inventory, assessing net realizable value assessments

Operational Highlights

  • Achieved 10.2 lakh tonnes volume representing 32% YoY growth
  • Business segments: Steel (90% of turnover) and Non-steel segments (plumbing, flooring, electrical, paints) with revenue of ₹605.55 crores
  • Distribution channels: Retail stores (₹3,627.32 crores), Distribution (₹3,198.39 crores), E-commerce (₹22.18 crores with 322% growth)
  • Maintained CRISIL ratings: Long Term Rating A- stable, Short Term Rating CRISIL A2+

Regulatory Compliance & Governance

The company demonstrated full compliance with SEBI LODR requirements, received unqualified secretarial audit report, and maintained adequate internal financial controls. The Board comprises 6 members (3 Executive, 3 Independent including one woman director).

Subsequent Events & Outlook

The 3rd AGM will be held virtually on July 2, 2026, to seek shareholder approval for financial statements, dividend declaration, director reappointments, and remuneration revisions. The company maintains a strong footprint across South India with expansion into western and central regions.