Akar Auto Industries Ltd informed the Bombay Stock Exchange that the delay in appointing a woman director stemmed from the time required to identify and select a suitable candidate. The company confirmed it has since appointed the director, thereby ensuring compliance with Regulation 17(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The disclosure was made in response to an email from the BSE dated May 27, 2026, regarding the non-compliance. Akar Auto stated that its Board of Directors will take necessary steps to ensure timely adherence to applicable regulatory requirements moving forward.

Regulatory Compliance Status

The company addressed the specific regulatory breach under the SEBI LODR framework. Key details from the intimation include:

• Regulation Violated: Regulation 17(1) of SEBI LODR Regulations, 2015.
• Reason for Delay: Time involved in identification and selection of a suitable candidate.
• Current Status: Woman Director appointed; compliance ensured.
• Penalty Action: Application submitted to the Stock Exchange seeking waiver of the fine.

What the Numbers Show

While no financial figures are disclosed in this regulatory filing, the procedural timeline indicates a gap between the regulatory scrutiny date and the compliance resolution. The BSE issued its review communication on May 27, 2026, while the company's formal response was dated August 12, 2026. This three-month interval suggests the appointment process concluded after the initial regulatory notice but before the final submission of comments.

The application for a waiver of the fine is currently under process with the Stock Exchange. The outcome of this waiver request will determine if any financial penalty is levied against the company for the period of non-compliance.

Akar Auto Industries reported a significant decline in profitability for the quarter ended June 30, 2026, with net profit falling 74% year-on-year to ₹47.05 lakh. The automotive components manufacturer saw revenue from operations contract by 14% to ₹7,812.04 lakh, compared to ₹9,043.74 lakh in the corresponding period of FY25.

The Board of Directors, meeting on August 12, 2026, approved the unaudited financial results and recommended a dividend of 6%, equivalent to ₹0.30 per equity share of face value ₹5 each, for the financial year 2025-2026. This recommendation is subject to shareholder approval at the upcoming Annual General Meeting.

Financial Performance

Revenue from operations for the quarter stood at ₹7,812.04 lakh, a decrease from ₹7,929.47 lakh in the preceding quarter (Q4FY26) and significantly lower than the ₹9,043.74 lakh recorded in Q1FY25. Total income for the quarter was ₹7,819.68 lakh, including other income of ₹7.64 lakh.

Profit before tax declined 51% to ₹102.32 lakh from ₹210.07 lakh in the prior year period. Total tax expenses amounted to ₹55.26 lakh, comprising current tax of ₹17.08 lakh and deferred tax of ₹38.19 lakh.

What the Numbers Show

The divergence between pre-tax and post-tax performance highlights a shift in tax dynamics. While profit before tax fell by roughly half compared to the previous year, net profit contracted more sharply at 74%. This acceleration in decline is driven by a higher effective tax burden relative to earnings; total tax expenses rose to ₹55.26 lakh in Q1FY26 from ₹28.53 lakh in Q1FY25, despite the lower profit base. Deferred tax expenses contributed ₹38.19 lakh this quarter, up from a deferred tax benefit of ₹10.06 lakh in the same period last year.

Corporate Actions

The Board also approved the re-appointment of M/s Singh Mundada & Associates as Statutory Auditors for a second consecutive term of five years, from the conclusion of the 37th Annual General Meeting to the 42nd. The 37th AGM is scheduled for September 29, 2026, to be held via Video Conference or Other Audio Visual Means.

Singh Mundada & Associates issued their limited review report on August 12, 2026, stating that nothing came to their attention to suggest the unaudited standalone financial results do not comply with SEBI Listing Regulations or contain material misstatements.