Autofurnish Limited has approved the acquisition of a 55% equity stake in Chhariot EMob Private Limited, marking its entry into the electric vehicle manufacturing and distribution segment.

The board of directors approved the move during its meeting held on September 4, 2026. The acquisition is structured as a cash transaction, with shares acquired at face value. Autofurnish also sanctioned an inter-corporate loan of up to ₹2.50 crore to the target entity, subject to regulatory approvals and mutual terms.

Deal Structure and Terms

The acquisition aims to expand Autofurnish’s business footprint into the e-mobility sector. Chhariot EMob is engaged in the trading, distribution, assembly, and manufacturing of two-wheeler electric vehicles, EV parts, and batteries. The target entity operates within India.

Related Party Disclosure

The filing contains conflicting disclosures regarding related party status. One section states the transaction does not fall under related party transactions, with no promoter interest. Conversely, another section confirms it is a related party transaction, noting that while Autofurnish acquires 55%, its promoters are acquiring the remaining 45% stake.

Financial Background of Target

Chhariot EMob reported nil turnover for the last three years. The acquisition allows Autofurnish to leverage the target’s existing infrastructure for EV assembly and parts manufacturing without immediate revenue integration from historical operations.

Autofurnish reported a consolidated revenue from operations of ₹3,901.20 lakh for the financial year ended March 31, 2026, an 18% increase over the previous year. Despite the top-line growth, profit after tax remained broadly stable at ₹363.33 lakh, reflecting higher finance costs and working capital absorption.

The board of directors approved the annual report and director's report on August 31, 2026. Managing Director Puneet Arora signed off on the resolutions, ensuring compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has scheduled its 11th Annual General Meeting (AGM) to be held via video conferencing on September 25, 2026.

Financial Performance

The company delivered resilient financial performance during FY26, supported by expanded scale across its distribution channels. However, earnings growth trailed revenue growth due to increased operational expenses.

On a standalone basis, revenue from operations grew 14.2% to ₹3,685.75 lakh, while profit after tax rose marginally by 3.4% to ₹321.02 lakh. The profit-before-tax margin on revenue from operations moderated to 13.0% from 14.3% in the prior year.

What the Numbers Show

While revenue expanded significantly, the pace of earnings growth lagged behind. Employee benefit expenses rose 24.2%, and finance costs increased sharply by 123.7% to ₹13,639.71 lakh (consolidated). This divergence indicates that higher borrowing costs and working capital build-up are currently offsetting the benefits of top-line scale. Management has identified demand-linked procurement and credit discipline as key priorities to improve cash conversion.

E-Voting Schedule

The company has engaged CDSL to provide remote e-voting facilities to shareholders. The voting window is open for four days in late September.

Only persons whose names are recorded in the register of members or beneficial owners as on the cut-off date are entitled to avail the facility. Remote e-voting will not be allowed beyond September 24, 2026, at 5:00 pm.

Key Resolutions and Governance

The board approved several administrative and compliance-related matters during the session:

• Appointment of CS Srishti Gupta as the secretarial auditor for the financial year ending March 31, 2027.
• Appointment of CS Srishti Gupta as the scrutinizer for e-voting at the 11th AGM to ensure fair and transparent processes.
• Re-appointment of Mr. Vipul Vashisht as a director liable to retire by rotation.
• Appointment of Mrs. Shrishti Gupta as an Independent Director.

No dividend was recommended for FY26. The profits have been retained to support working capital requirements, business expansion, and long-term growth. The company completed its initial public offering and listed its equity shares on the SME Platform of BSE Limited on May 29, 2026.