Chandni Machines Limited reported a standalone net loss of ₹28.40 lakh for the quarter ended June 30, 2026 (Q1FY26), marking a significant deterioration from the net profit of ₹3.89 lakh recorded in the corresponding period of FY25. The company’s total income from operations declined 3% year-on-year to ₹28.05 lakh, down from ₹28.98 lakh in Q1FY25.

The financial performance for the current quarter reflects a reversal in profitability dynamics compared to the prior year. While the company generated a pre-tax profit of ₹5.20 lakh in June 2025, it incurred a pre-tax loss of ₹28.40 lakh in June 2026. This shift indicates that operating costs or expenses exceeded revenues by a wider margin than in the previous fiscal period.

Financial Highlights

The earnings per share (EPS) turned negative to -₹0.26 per equity share of face value ₹5 each, compared to a positive EPS of ₹0.04 in the same quarter last year. The company’s equity share capital remained unchanged at ₹110.62 lakh.

What the Numbers Show

The divergence between revenue stability and profit volatility is notable. With revenue declining marginally (less than 4%), the swing from a small profit to a significant loss suggests that the pressure was driven by cost structures rather than a collapse in top-line sales volume. The pre-tax and post-tax figures are identical (₹28.40 lakh), indicating no exceptional items or extraordinary gains/losses impacted the bottom line during the quarter.

Corporate Governance

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on August 14, 2026. The results have been filed with the stock exchanges under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The full format of the quarterly financial results is available on the company’s website and the BSE India website.

Chandni Machines Limited shareholders approved a significant expansion of the company’s business scope at an Extra Ordinary General Meeting (EGM) held on July 23, 2026. The resolutions altered the Memorandum of Association (MOA) to include manufacturing metal ingots, marine engineering, naval shipbuilding, and chemical trading. This strategic pivot allows the firm to diversify beyond its existing operations into high-growth sectors such as defense and aerospace components. The resolutions received unanimous support from participating investors, enabling management to deploy capital into these new verticals without further shareholder hurdles.

The meeting was chaired by Chairman & Managing Director Jayesh R. Mehta and complied with Ministry of Corporate Affairs (MCA) General Circular No. 03/2025 and SEBI Listing Regulations. The Board had previously considered these alterations in meetings held on June 18, 2026, and June 24, 2026. The voting process was scrutinized by M/s. S P K G & Co. LLP, with Partner Ashutosh Somani serving as the appointed scrutinizer. Remote e-voting commenced on July 20, 2026, at 9:00 a.m. and concluded on July 22, 2026, at 5:00 p.m., facilitated by Purva Shareregistry (India) Private Limited.

New Business Verticals

The approved alterations insert Sub-clauses 5, 6, 7, and 8 under Main Objects Clause III(A) of the MOA, defining four distinct new operational areas:

The marine segment specifically includes technical support services for maritime safety compliance and the integration of specialized military hardware for naval defense specifications. The company also gained the authority to establish docks, graving docks, and slipways for vessel construction and maintenance.

Voting Results Breakdown

Disclosed pursuant to Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, both resolutions were passed with 100% support among votes polled. No votes were cast against either resolution. Out of 4,291 shareholders on the record date of July 16, 2026, only 32 shareholders participated in the remote e-voting process. The promoter group held 14,75,661 shares and cast 14,63,161 votes in favor, accounting for 99.15% of their holdings. Public non-institutional shareholders held 17,51,692 shares but cast only 1,63,303 votes, representing 9.32% of their holdings.

The total votes polled amounted to 16,26,464 out of 32,27,433 total shares outstanding, resulting in a participation rate of approximately 50.39%. Public institutional shareholders, holding 80 shares, did not participate. The low participation from public non-institutional shareholders highlights the concentration of voting power within the promoter group.

Strategic Implications

The approval provides Chandni Machines Limited with greater flexibility in utilizing funds raised through preferential allotments. By varying the objects of the allotment, the company can redirect capital towards new business opportunities such as defense manufacturing or chemical trading that may not have been anticipated during original fundraising. This structural change aligns the company’s legal framework with its evolving business strategy, potentially enhancing operational agility. The unanimous approval indicates strong alignment between the promoters and participating public shareholders regarding this strategic direction.