Caprolactam Chemicals posts ₹176.1 lakh net profit in FY26 turnaround

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Reviewed by
Ashish TScanX News Team
Key Highlights
  • Caprolactam Chemicals reported a FY26 net profit of ₹176.12 lakh, turning around from a ₹70.87 lakh loss in FY25
  • Revenue from operations grew 56.6% to ₹1,055.75 lakh, driven by a surge in service sales
  • Total assets rose to ₹1,703.96 lakh with trade receivables increasing significantly to ₹621.18 lakh
  • The 37th AGM is scheduled for September 28, 2026, with remote e-voting available from September 24 to 27
  • No dividend was declared for FY26; paid-up capital remains at ₹460 lakh
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Caprolactam Chemicals Limited posted a full-year net profit of ₹176.12 lakh for FY26, reversing a loss of ₹70.87 lakh recorded in the corresponding period of the previous year. The company’s revenue from operations more than doubled to ₹1,055.75 lakh, up from ₹673.96 lakh in FY25.

The 37th Annual General Meeting (AGM) is scheduled for September 28, 2026, to adopt the audited financial statements and approve key corporate actions. Shareholders holding shares as on the record date of September 21, 2026, will be eligible to vote via remote e-voting between September 24 and September 27, 2026.

Financial Performance

The company’s total income rose to ₹1,058.86 lakh from ₹674.92 lakh in the prior year. This growth was primarily driven by a surge in sale of services, which reached ₹1,028.69 lakh compared to ₹606.42 lakh previously. Sales of manufactured goods declined to ₹27.06 lakh from ₹67.54 lakh.

Total expenses increased to ₹842.29 lakh from ₹743.29 lakh. Finance costs rose to ₹71.91 lakh from ₹63.24 lakh, while depreciation and amortisation expenses decreased slightly to ₹161.41 lakh from ₹165.04 lakh. The company incurred a total tax expense of ₹40.44 lakh, comprising current tax of ₹37.35 lakh and deferred tax of ₹3.09 lakh.

Metric FY26 FY25 Change
Revenue from Operations ₹1,055.75 lakh ₹673.96 lakh +56.6%
Net Profit After Tax ₹176.12 lakh (₹70.87) lakh Turnaround
Total Expenses ₹842.29 lakh ₹743.29 lakh +13.3%
Finance Costs ₹71.91 lakh ₹63.24 lakh +13.7%

Balance Sheet and Cash Flow

As of March 31, 2026, total assets stood at ₹1,703.96 lakh, up from ₹1,428.42 lakh. Current assets increased significantly to ₹657.13 lakh, driven by a rise in trade receivables to ₹621.18 lakh from ₹282.42 lakh. Inventories declined to ₹16.26 lakh from ₹40.65 lakh.

Short-term borrowings rose to ₹922.90 lakh from ₹871.34 lakh. The company maintained cash and cash equivalents of ₹8.69 lakh. Net cash generated from operating activities was ₹164.97 lakh, compared to an outflow of ₹56.18 lakh in the previous year.

Corporate Actions

The Board recommended the reappointment of Mrs. Zaver Shankarlal Bhanushali as Managing Director, who retires by rotation. Additionally, shareholders will vote to appoint M/s. Raman S. Shah & Co. as statutory auditors for a five-year term commencing from the conclusion of the AGM.

No dividend has been declared for FY26. The company’s paid-up equity share capital remains unchanged at ₹460 lakh, comprising 46 lakh equity shares of ₹10 each.

Historical Stock Returns for Caprolactam Chemicals

1 Day5 Days1 Month6 Months1 Year5 Years
-0.50%+3.22%+3.53%+6.02%+8.32%-31.38%

How does the significant surge in service revenue compared to the decline in manufactured goods sales signal a strategic pivot in Caprolactam Chemicals' business model?

Given the increase in short-term borrowings to ₹922.90 lakh, what is the company's strategy for debt management and interest cost containment in the coming fiscal year?

With trade receivables more than doubling to ₹621.18 lakh, what measures is the company implementing to improve working capital efficiency and mitigate credit risk?

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Caprolactam Chemicals recommends Raman S. Shah & Co as statutory auditors

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Reviewed by
Jubin VScanX News Team
Key Highlights
  • Caprolactam Chemicals recommends M/s. Raman S. Shah & Co as statutory auditors
  • Proposed audit fees are ₹110000 plus applicable taxes and expenses
  • Appointment is subject to approval at the 37th Annual General Meeting
  • E-voting for the AGM runs from September 24 to September 27, 2026
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Caprolactam Chemicals Limited has recommended the appointment of M/s. Raman S. Shah & Co as its statutory auditors. The Board of Directors approved the proposal during a meeting held on August 31, 2026.

The recommendation follows advice from the Audit Committee, which cited the firm’s professional expertise and suitability for the company’s audit requirements. The proposed engagement is subject to shareholder approval at the ensuing Annual General Meeting (AGM).

Auditor Details

The firm, bearing Registration No. 111919W, is led by signing partner Raman S. Shah (Membership No. 033272). The proposed audit fees are set at ₹110000 plus applicable taxes and reimbursement of out-of-pocket expenses.

Particulars Details
Audit Firm M/s. Raman S. Shah & Co
Signing Partner Raman S. Shah
Proposed Fees ₹110000 plus taxes
Term From conclusion of ensuing AGM until conclusion of 42nd AGM

The appointment requires receipt of requisite consent and eligibility certificates confirming compliance with the Companies Act, 2013. The firm has no relationship with the company’s directors or key managerial personnel.

AGM Logistics

The board also approved logistical arrangements for the 37th AGM, scheduled for September 28, 2026, at 10:30 am. Purva Sharegistry (India) Pvt. Ltd. has been appointed to handle e-voting services.

Mr. Rahul Shivji Gori was appointed as the scrutinizer for the e-voting process. The record date for determining voting eligibility is September 21, 2026. Shareholders may cast votes electronically from 9:00 am on Thursday, September 24, 2026, to 5:00 pm on Sunday, September 27, 2026.

Historical Stock Returns for Caprolactam Chemicals

1 Day5 Days1 Month6 Months1 Year5 Years
-0.50%+3.22%+3.53%+6.02%+8.32%-31.38%

How might the appointment of M/s. Raman S. Shah & Co influence Caprolactam Chemicals' future financial reporting standards and investor confidence?

What are the potential implications of the ₹110,000 audit fee structure for the company's operational costs and profitability margins in the upcoming fiscal year?

Could the specific timeline for the 37th AGM and e-voting process impact shareholder participation rates or the outcome of key resolutions?

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1 Year Returns:+8.32%