Addi Industries reported a consolidated net profit of ₹90.31 lakh for the quarter ended June 30, 2026, marking an 8% year-on-year increase from ₹83.96 lakh in Q1FY26. Standalone net profit rose to ₹86.45 lakh from ₹80.33 lakh in the corresponding prior period. Despite the profit growth, the company recorded nil revenue from operations, indicating that earnings were derived exclusively from non-operational sources. The Board of Directors highlighted a material uncertainty regarding the company’s ability to continue as a going concern, noting that while it is exploring new business ventures, none have been implemented yet.

The financial results were approved by the Board on August 01, 2026, and reviewed by the statutory auditors. In compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the unaudited standalone and consolidated results were published in Financial Express and Jansatta on August 02, 2026. The filing also disclosed that the accounts have been prepared on a going concern basis due to significant cash and bank balances, positive net worth, and no borrowings.

Financial Performance

The company’s total income stood at ₹646.56 lakh (consolidated), comprising entirely of other income at ₹134.49 lakh, as revenue from operations was nil. Total expenses decreased significantly to ₹536.68 lakh from ₹743.98 lakh in FY26, primarily due to lower employee benefits and other expenses. However, purchases of stock in trade accounted for ₹508.21 lakh of the consolidated expenses.

Standalone profit before tax was ₹106.02 lakh, compared to ₹106.00 lakh in Q1FY26. Tax expenses totaled ₹19.57 lakh (standalone) and ₹19.57 lakh (consolidated). Earnings per share (basic) were ₹0.80 for both standalone and consolidated figures, up from ₹0.74 in the previous year’s quarter.

What the Numbers Show

The divergence between nil operational revenue and positive net profit underscores the company’s current reliance on non-operating income streams. While consolidated total income appears higher at ₹646.56 lakh due to the inclusion of stock-in-trade purchases in the expense structure, the core operational activity remains dormant. The significant reduction in total expenses from the previous fiscal year suggests cost containment measures are effective, but the lack of revenue generation poses a strategic risk. The Board’s disclosure of material uncertainty reinforces the transitional nature of the business, which is currently preserving cash reserves while seeking new ventures.

Addi Industries Limited reported a consolidated net profit of ₹89.12 lakh for the quarter ended June 30, 2026 (Q1FY26), a 6.1% increase from ₹83.96 lakh in the corresponding period of FY25. The Board of Directors approved these unaudited financial results on August 01, 2026, alongside a significant governance change: the resignation of its statutory auditors, M/s B R Gupta & Co., effective immediately, due to an unresolved dispute over audit fees for FY27. M/s Shilpi Sharma and Co LLP has been appointed to fill the casual vacancy until the ensuing Annual General Meeting (AGM).

The filing was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The resignation letter from B R Gupta & Co., submitted under SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, confirmed no concerns regarding management conduct or information availability. The firm cited only the company's unwillingness to increase remuneration to levels commensurate with Institute of Chartered Accountants of India (ICAI) recommendations as the reason for stepping down.

Financial Performance

Standalone revenue from operations remained nil for the quarter, consistent with the prior year. However, other income contributed significantly to the bottom line. Standalone other income stood at ₹134.49 lakh, down slightly from ₹137.27 lakh in Q1FY25. Total standalone expenses decreased to ₹28.47 lakh from ₹31.27 lakh in the corresponding period, primarily due to lower finance costs (₹12.44 lakh vs ₹0.27 lakh) and other expenses (₹5.64 lakh vs ₹10.89 lakh). This resulted in a standalone net profit of ₹86.45 lakh, up from ₹80.33 lakh in Q1FY25.

On a consolidated basis, which includes subsidiary Aum Texfab Private Limited, revenue from operations was ₹209.08 lakh. Total consolidated income reached ₹345.55 lakh. Consolidated expenses totaled ₹235.97 lakh, leading to a profit before tax of ₹109.58 lakh. After tax expenses of ₹20.46 lakh, the consolidated net profit for the period was ₹89.12 lakh.

Auditor Transition and Going Concern

M/s Shilpi Sharma and Co LLP has been appointed to fill the casual vacancy caused by the resignation of B R Gupta & Co., effective August 01, 2026, until the conclusion of the ensuing AGM. The Board has further recommended their appointment for a term of five consecutive years, subject to shareholder approval at the AGM. Shilpi Sharma and Co holds Firm Registration No. 021442N and has experience in corporate audits and bank branch audits.

The auditor’s review report highlighted a material uncertainty regarding the company’s ability to continue as a going concern. Note 4 in the financial results states that while the Board is exploring modalities for a new business venture, it has not yet been implemented. However, management maintains that the going concern basis is appropriate due to significant cash and bank balances, positive net worth, and no borrowings.

What the Numbers Show

The company’s profitability remains heavily dependent on non-operating income. With standalone revenue from operations at nil, the entire standalone profit of ₹86.45 lakh is derived from other income minus minimal operating expenses. While consolidated revenue exists via Aum Texfab Private Limited, the subsidiary’s contribution to the group’s bottom line is marginal compared to the holding company’s other income streams. Investors should monitor the implementation status of the new business venture cited by management, as its absence continues to cast doubt on long-term operational sustainability despite current liquidity.