Arcee Industries reported a net loss of ₹35.68 lakh for the financial year ended March 31, 2026, widening significantly from the ₹13.37 lakh loss recorded in FY25. The company’s revenue from operations contracted by nearly 35% year-on-year to ₹9.90 lakh, reflecting the complete cessation of manufacturing activities across its PVC and steel pipe segments.

The loss expansion was driven by a reversal in other income, which swung from a gain of ₹7.93 lakh in the prior year to a loss of ₹7.79 lakh in FY26, primarily due to losses on the sale of vehicles. Operating expenses remained elevated at ₹50.40 lakh despite nil material consumption, as the company incurred employee benefit costs of ₹8.83 lakh and depreciation of ₹12.39 lakh on idle assets.

Operational Status and Asset Liquidation

Management confirmed that production has stopped entirely due to continuous losses and outdated plant machinery. With no new working capital facilities available from banks, the company is now in the process of disposing of its plant and machinery to settle outstanding dues to raw material suppliers. The turnover was derived solely from the steel pipe segment, while the PVC pipe segment reported nil revenue.

Capital Raise and Corporate Governance

Subsequent to the fiscal year-end, the company allotted 2.15 crore convertible warrants at ₹10.35 per warrant on July 15, 2026, raising approximately ₹22.25 crore. This move follows shareholder approval at an Extra-Ordinary General Meeting held in February 2026. The board also appointed two new independent directors, Mr. Rohan Mehrotra and Mr. Amit Kumar, effective May 2026, strengthening governance oversight during this transitional phase.

What the Numbers Show

The balance sheet reveals a critical liquidity constraint. Cash and cash equivalents dropped by 64% to just ₹3.30 lakh, insufficient to cover current liabilities of ₹185.91 lakh. Furthermore, trade payables remain high at ₹135.00 lakh, with the entire amount classified as outstanding for more than three years, indicating severe payment delays to suppliers. The accumulation of deferred tax assets worth ₹128.58 lakh underscores the persistent unabsorbed losses carried forward.

Arcee Industries has regularised the appointments of Rohan Mehrotra and Amit Kumar as independent directors, while appointing Amit Gupta as an additional director. The Board also approved the Directors' Report for FY26 and fixed the date for its 34th Annual General Meeting.

The meeting, held on September 8, 2026, saw the Board approve several key governance and compliance matters. These included the appointment of M/s. CGH & Associates, Chartered Accountants, as the company's statutory auditors for a five-year term starting from the conclusion of the upcoming AGM.

Director Appointments and Regularisations

The Board acted on recommendations from the Nomination and Remuneration Committee to finalise the board composition ahead of the AGM.

Rohan Mehrotra (DIN: 09073372) and Amit Kumar (DIN: 10996442), who were appointed as Additional Independent Directors on May 20, 2026, have been regularised for five-year terms ending May 19, 2031. Both appointments are subject to shareholder approval at the ensuing AGM.

Additionally, Amit Gupta (DIN: 00255618) was appointed as an Additional Non-Executive Non-Independent Director effective September 8, 2026. His tenure will last until the conclusion of the 34th AGM or the last date it should have been held, whichever is earlier.

Auditor Appointments

The Audit Committee recommended the appointment of M/s. CA Madhur Bansal and Associates as the internal auditor for FY25-26.

For statutory audit duties, the Board approved M/s. CGH & Associates (FRN: 025528C) for a five-year term from the conclusion of the 34th AGM until the 39th AGM. This replaces their interim appointment made in February 2026 following the resignation of the previous auditors, M/s. Jain Mittal Chaudhary & Associates.

AGM Details

The 34th Annual General Meeting is scheduled for September 30, 2026, at 2:00 pm at the company's registered office in Hisar. The share transfer books will remain closed from September 24 to September 30, 2026. CS Chandan Jha has been appointed as the scrutinizer for the e-voting process.