Ajel Limited reported a consolidated net profit of ₹4.54 lakh for the quarter ended June 30, 2026, marking a shift from the net loss recorded in the preceding quarter. The company’s standalone operations, however, posted a net loss of ₹8.98 lakh during the same period.

The Board of Directors approved the unaudited financial results for the quarter and half-year ended June 30, 2026, on August 20, 2026. The meeting was held at the corporate office in Hyderabad, Telangana. Statutory auditors GMK & Co LLP issued a limited review report with an unmodified opinion, while highlighting several critical disclosures regarding the company’s balance sheet and compliance status.

Financial Performance

Consolidated revenue from operations rose to ₹365.60 lakh in Q1FY27, up from ₹326.28 lakh in the corresponding quarter of FY26. This growth contributed to the turnaround in profitability at the group level, where total expenses stood at ₹361.06 lakh. In contrast, standalone revenue was ₹111.76 lakh, against total expenses of ₹120.74 lakh, resulting in the aforementioned loss.

Other income remained at zero for both standalone and consolidated entities in the current quarter, whereas it contributed ₹32.86 lakh in the previous quarter. Employee benefit expenses decreased significantly in the consolidated structure, falling to ₹18.85 lakh from ₹44.96 lakh in Q4FY26.

What the Numbers Show

The divergence between standalone and consolidated results highlights the operational weight of the subsidiaries, Ajel Technologies India Private Limited and Ajel Technologies Inc. While the parent company continues to operate at a loss with expenses exceeding revenue by nearly ₹9 lakh, the group-level profitability suggests that subsidiary operations or intercompany adjustments are currently driving the positive bottom line. However, the absence of other income in Q1FY27, compared to the ₹32.86 lakh recorded in the prior quarter, indicates a reduction in non-operational gains that had previously supported total income figures.

Auditor Observations and Risks

The limited review report drew attention to several material matters that warrant investor scrutiny:

• Non-Performing Asset: A loan facility of ₹5 crore availed from Bank of Maharashtra during FY24 has been classified as a Non-Performing Asset (NPA) since October 8, 2024, due to non-repayment of principal and interest.
• Unpaid Dues: The company has not paid any tax or other regulatory statutory dues, including employee-related obligations, up to June 30, 2026. Management confirmation regarding payment status was unavailable to auditors.
• Receivables Verification: Auditors could not confirm the reasonableness of trade payables and receivables balances as requisite details were not provided.
• Investments: Listed equity investments worth ₹91.22 lakh (fair value as on March 31, 2026) were not measured at fair value for the current quarter, nor could physical or dematerialized share certificates be verified for majority holdings.
• Long-Term Advances: An amount of ₹85.96 lakh disclosed under "Other Long Term Loans & Advances" remains unrecovered, with no management information available on recoverability.

Ajel Limited appointed Sheetal Pareek as its Company Secretary and Compliance Officer on July 22, 2026, filling the vacancy created by the resignation of Sneha Chandak. The Board of Directors approved the appointment during a meeting held that day, ensuring immediate continuity in the firm’s regulatory compliance and corporate governance functions. Chandak had resigned from her roles as Company Secretary, Compliance Officer, and Key Managerial Personnel (KMP) effective July 22, 2026, citing a better opportunity as the reason for her departure.

The transition was managed within the same board meeting, which commenced at 11:00 A.M. and concluded at 12:00 P.M. on July 22, 2026. Chandak’s resignation letter was dated July 20, 2026. Following the acceptance of her resignation, the Board, based on the recommendation of the Nomination & Remuneration Committee, appointed Pareek with immediate effect. This swift succession plan prevents any lapse in statutory reporting and listing compliance for the Mumbai-based engineering firm.

Appointment Details

Sheetal Pareek, an Associate Member of the Institute of Company Secretaries of India (Membership No. A34090), brings experience in dealing with matters related to the Companies Act, Listing Regulations, and allied laws. The company confirmed that Pareek has no relationship with any Director or Key Management Personnel of Ajel Limited. Her consent to act in the role was dated July 20, 2026.

Regulatory Compliance

Ajel Limited intimated the appointment to the Bombay Stock Exchange Limited pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure also complied with SEBI Circular No. CIR/CFO/CMD/4/2015 dated September 09, 2015, which mandates detailed annexures regarding changes in key managerial personnel. The filing was signed by Srinivasa Reddy Arikatla, Managing Director of Ajel Limited.

Governance Continuity

The simultaneous acceptance of Chandak’s resignation and appointment of Pareek underscores the company’s focus on maintaining uninterrupted regulatory oversight. Chandak held Institute of Company Secretaries of India Membership No. A68064. Her exit was confirmed to have no material reasons other than those stated in her resignation letter. Pareek’s appointment ensures that all statutory filings and board meeting compliances continue without delay.