Alufluoride Limited reported a decline in profitability for the quarter ended June 30, 2026, driven by supply chain disruptions affecting its core inorganic chemical business. The company’s standalone net profit fell to ₹287.71 lakh, down from ₹318.21 lakh in Q1FY26, while consolidated net profit dropped to ₹274.67 lakh from ₹310.49 lakh year-on-year. Revenue from operations also contracted to ₹2,597.08 lakh compared to ₹4,293.01 lakh in the corresponding previous period, reflecting reduced production volumes.

The Board of Directors approved the unaudited financial results on August 11, 2026, following a limited review by statutory auditors Brahmayya & Co. The filing was submitted pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Management attributed the performance dip primarily to geopolitical tensions related to the USA and Iran conflict, which disrupted the supply of Silicic Acid (FSA), a critical raw material sourced from an adjacent Fertilizer Complex.

Financial Performance Overview

The company faced margin pressure as it procured Fluo-Silicic Acid from distant sources at higher costs due to escalating fuel prices. While cost of materials consumed decreased to ₹1,414.42 lakh from ₹2,086.50 lakh, total expenses remained high at ₹2,547.19 lakh (standalone) and ₹2,560.88 lakh (consolidated). Other income provided some relief, rising sharply to ₹235.83 lakh from ₹34.25 lakh in the standalone figures.

What the Numbers Show

A key analytical observation is the divergence between operational revenue decline and the surge in other income. While revenue from operations fell by approximately 40% year-on-year, other income increased nearly seven-fold to ₹235.83 lakh in standalone accounts. This suggests that non-operating gains partially offset the operational headwinds caused by raw material shortages. However, the core business remains vulnerable to external supply shocks, as evidenced by the continued reliance on expensive distant sources for Fluo-Silicic Acid.

Management indicated that production and financial performance were adversely impacted during the quarter but expressed hope for improved FSA supplies starting from the current quarter. With a completed project expansion, the company anticipates that restored supply chains will drive improvements in both production volumes and revenue in the coming quarters. The consolidated results include a wholly-owned subsidiary, Alufluoride International PTE Ltd in Singapore, which reported a total comprehensive loss of ₹13.69 lakh for the three months ended June 30, 2026.

Alufluoride Ltd has launched a postal ballot process to secure shareholder approval for the continuance of Independent Director Yugandhar Meka, who attained the age of 75 years during his current five-year term. The special resolution, required under Regulation 17(1A) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, allows Meka to remain on the board until July 31, 2029. Remote e-voting opens on July 25, 2026, and closes on August 23, 2026, with results expected by August 25, 2026.

The Board of Directors approved the proposal on July 22, 2026, citing Meka’s extensive experience and contribution to the company. As per the Companies Act, 2013, and relevant SEBI regulations, no physical ballot forms are being dispatched; shareholders must vote electronically via Central Depository Services (India) Limited (CDSL). The cut-off date for eligibility is July 17, 2026.

Voting Timeline and Process

Shareholders holding shares as of the cut-off date can cast their votes through remote e-voting only. The facility is accessible via CDSL’s e-voting platform, with login credentials linked to demat accounts held with CDSL or NSDL, or through physical folio numbers for non-demat holders. Institutional investors must submit scanned board resolutions to the scrutinizer.

Sri G.M.V. Dhanunjaya Rao of GMVDR & Associates has been appointed as the Scrutinizer to ensure a fair and transparent voting process. The results, along with the Scrutinizer’s report, will be displayed on the company’s website and communicated to BSE Limited.

About Yugandhar Meka

Yugandhar Meka is serving his second term as an Independent Director, which began on August 1, 2024. A Commerce Graduate and Fellow Member of the Institute of Chartered Accountants of India, he brings over 49 years of experience in financial services. He was a founder of Karvy & Co. Chartered Accountants and served as Managing Director of Karvy Computershare Ltd. until 2018. Currently, he also serves on the boards of Lokesh Machines Limited and Suryalata Spinning Mills Limited.