Andrew Yule & Company has been fined ₹5.31 lakh by BSE Ltd. for non-compliance with board composition norms during the quarter ended March 31, 2026. The penalty, imposed under Regulation 30 of the SEBI (LODR) Regulations, 2015, stems from a failure to adhere to the provisions of Regulation 17(1) regarding the structure of the Board of Directors.

The exchange communicated the penalty via a notice dated May 27, 2026. In response, the company submitted a request to BSE on the same day seeking a waiver of the imposed fines. Andrew Yule argued that as a Central Public Sector Enterprise (CPSE) under the administrative control of the Ministry of Heavy Industries, the authority to appoint directors rests with the President of India, which caused delays in compliance.

To address the regulatory gap, the company stated it has engaged with the administrative ministry to facilitate the appointment of the required number of Independent Directors. This step is intended to ensure future compliance with the SEBI (LODR) Regulations and avoid further penalties.

The disclosure was filed by Company Secretary Sucharita Das on May 27, 2026. The company emphasized that the non-compliance was not due to operational oversight but procedural constraints inherent to its status as a government enterprise.

Andrew Yule & Company Limited reported a consolidated net loss of ₹19.19 crore for the financial year ended March 31, 2026, widening from a net loss of ₹2.84 crore in the previous year. The standalone net loss for the year stood at ₹31.09 crore. The Board of Directors, which met on May 26, 2026, approved the audited standalone and consolidated financial results but did not recommend a final dividend for FY26.

The company's total income for the year decreased to ₹3,828.65 crore from ₹3,752.74 crore in the previous year. Total expenses rose to ₹4,176.41 crore from ₹4,037.80 crore. Other income included a gain of ₹5,842.05 lakh on the sale of an investment in an associate company. The basic earnings per share for the year stood at a loss of ₹0.39 on a consolidated basis and a loss of ₹0.64 on a standalone basis.

Q4 Financial Performance

On a quarterly basis, Andrew Yule's performance remained under pressure. The company reported a net loss of 429M rupees in Q4, compared to a net loss of 123M rupees in the same period of the previous year, reflecting a significant year-on-year deterioration. Revenue for the quarter declined to 917M rupees from 975M rupees in the corresponding period of the prior year.

Annual Financial Highlights

The full-year consolidated financial results reflect the continued challenges faced by the company. The following table summarises the key annual metrics:

Auditor Observations

M/s. N. C. Banerjee & Co., the statutory auditors, issued an unmodified opinion on the financial results. However, the report highlighted several areas of emphasis and material weaknesses. The auditors noted that the company has introduced "Audit Trail" features only for limited financial transactions, and significant manual intervention in consolidation results in a higher level of audit risk.

The auditors also pointed out delays in the deposit of statutory dues such as Provident Fund, Gratuity, and Leave Encashment. The outstanding liabilities for these delayed payments as of March 31, 2026, amounted to ₹3,209.08 lakh for Provident Fund, ₹2,038.31 lakh for Gratuity, and ₹247.76 lakh for Leave Encashment. Additionally, a penalty was levied by SEBI for non-compliance with Listing Obligations and Disclosure Requirements (LODR) regulations regarding the formation of the audit committee.

Segment Performance

The company operates across segments including Tea, Electrical, and Engineering. The Tea segment reported a loss before tax of ₹87.09 crore for the year. The Electrical-Chennai segment reported a profit before tax of ₹6.17 crore, while the Engineering segment reported a profit before tax of ₹33.04 crore. The auditors noted that proposals for the closure of wholly owned subsidiaries Yule Electrical Ltd. and Yule Engineering Ltd. have been submitted to the Ministry of Heavy Industries.