Arunaya Organics reported a 12% decline in net profit to ₹371.85 lakh for the financial year ended March 31, 2026, despite a 25% increase in revenue from operations to ₹10,324.78 lakh. The board approved the audited financial results for the half-year and year ended March 31, 2026, in a meeting held on May 30, 2026. The statutory auditor, M/s. Abhishek Kumar & Associates, issued a qualified opinion regarding the company's compliance with foreign exchange regulations and working capital management. Notably, the audit qualification appeared for the first time, and the auditor confirmed that the financial figures remain unchanged even after adjusting for the qualification.

Financial Performance

Total income for FY26 rose to ₹10,487.65 lakh from ₹8,285.60 lakh in the previous year. Total expenses increased to ₹9,873.21 lakh from ₹7,730.86 lakh. The profit before tax for the year stood at ₹614.44 lakh, compared to ₹554.74 lakh in the previous year. Earnings per share (basic and diluted) decreased to ₹2.18 from ₹3.48 in the previous year. The decline in net profit, despite higher revenue and pre-tax profit, was primarily driven by a significantly higher tax expense of ₹242.59 lakh in FY26 compared to ₹132.65 lakh in the previous year, which included a tax expense of earlier years amounting to ₹70.82 lakh.

Balance Sheet Highlights

As at March 31, 2026, the company's total assets stood at ₹9,005.53 lakh, up from ₹6,113.88 lakh in the previous year. Shareholders' funds increased significantly to ₹4,867.73 lakh from ₹1,692.17 lakh, reflecting the capital infusion from the IPO. Inventories rose to ₹4,367.66 lakh from ₹3,210.37 lakh, while trade receivables increased to ₹2,062.41 lakh from ₹1,440.81 lakh. Cash and cash equivalents grew substantially to ₹917.38 lakh from ₹6.61 lakh at the start of the year.

Auditor's Qualified Opinion

The auditor highlighted that certain payments for import transactions and receivables from export transactions remained outstanding for a period exceeding six months. This delay may have implications on the company's compliance with the Foreign Exchange Management Act, 1999 (FEMA) and could potentially impact its creditworthiness and business relationships with overseas partners. The management stated that the delays were due to pending payment approvals from the Reserve Bank of India and that the financial results for the year were not impacted by these matters. The audit qualification appeared for the first time, and the audited and adjusted figures remain identical across all key metrics.

Capital Allocation and IPO Proceeds

The company raised ₹3,050.80 lakh through its Initial Public Offer in May 2025, issuing 52,60,000 equity shares of ₹10 each at a premium of ₹48 each, and got listed on the Emerge SME Platform of National Stock Exchange of India Limited on May 7, 2025. As of March 31, 2026, the company utilized ₹2,150.80 lakh of the proceeds. A significant portion of the funds earmarked for setting up a new manufacturing facility at Dahej, Bharuch, Gujarat, amounting to ₹900.00 lakh, remained unutilized and were invested in fixed deposits. The company subsequently obtained an overdraft limit against these deposits, which was utilized for general business activities and advances. The Audit Committee confirmed there is no deviation in the use of IPO proceeds from the objects stated in the Prospectus.

Board and Governance Changes

The board reconstituted the Stakeholder Relationship Committee by appointing Mr. Vinod Brijmohandas Agrawal as a member effective May 30, 2026. The committee now comprises Mr. Ashokbhai Divanchand Agrawal as Chairman, Mr. Umesh Krishnankutty Menon, Mrs. Amita Chhaganbhai Pragada, and Mr. Vinod Brijmohandas Agrawal as members. Additionally, the board appointed M/s. G R Shah & Associates as the Secretarial Auditors for the financial year 2025-26. Mr. Gaurang Shah, Proprietor of M/s. G R Shah & Associates, holds vast experience in legal, compliance, secretarial compliances, listing compliance, FEMA compliances, and management consultancy.

Arunaya Organics Limited has appointed M/s. G R Shah & Associates as its Secretarial Auditor for Financial Year 2025-26, effective immediately. The appointment, made by the Board on the recommendation of the Audit Committee, ensures compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The firm, M/s. G R Shah & Associates, Practicing Company Secretaries, brings extensive experience in legal, compliance, and secretarial matters. The proprietor, Mr. Gaurang Shah, specializes in areas including the Companies Act, 2013, listing compliance, corporate compliances, and FEMA compliances.

Appointment Details

The following table outlines the key details regarding the appointment:

The disclosure was submitted to the National Stock Exchange of India Limited on May 30, 2026. Vinod Brijmohanlal Agrawal, Managing Director, signed the filing.