Coromandel Engineering Company Limited coromandel engineering company returned to profitability in the first quarter of FY26, reporting a net profit of ₹32.89 lakh for the period ended June 30, 2026. This marks a significant turnaround from the net loss of ₹72.51 lakh recorded in the corresponding quarter of FY25.

The Chennai-based construction firm saw its revenue from operations jump 78.9% year-on-year to ₹1,536.45 lakh, up from ₹859.01 lakh in Q1FY25. However, the cost structure expanded in tandem with revenue, with total expenses rising to ₹1,503.57 lakh from ₹852.69 lakh in the prior year period. Sub-contracting expenses accounted for the largest share of costs at ₹1,036.16 lakh, while materials consumed stood at ₹215.30 lakh.

What the Numbers Show

A key divergence in the quarterly performance lies in the tax treatment compared to the previous year. While the company posted a pre-tax profit of ₹32.89 lakh in Q1FY26, it incurred a current tax expense of ₹78.83 lakh in Q1FY25 despite posting a pre-tax loss of ₹6.32 lakh. This prior-year tax charge significantly deepened the net loss to ₹72.51 lakh in Q1FY25. In the current quarter, no current or deferred tax expense was recorded, allowing the pre-tax profit to flow directly to the bottom line as net profit.

Balance Sheet and Cash Flow Signals

The company’s balance sheet reflects stable borrowing levels, with non-current borrowings remaining unchanged at ₹995.00 lakh and current borrowings slightly decreasing to ₹1,027.69 lakh from ₹1,037.54 lakh as on March 31, 2026. Cash and cash equivalents declined to ₹19.36 lakh from ₹29.58 lakh at the end of FY26, reflecting operating cash outflows partially offset by direct tax refunds.

Operating activities generated a net cash inflow of ₹57.49 lakh, aided by a direct tax refund of ₹57.49 lakh, although cash generated from operations before taxes was negative at ₹63.85 lakh. Investing activities contributed ₹20.55 lakh, primarily from the sale of property, plant, and equipment.

Corporate Governance Updates

During its meeting on August 12, 2026, the Board of Directors approved the unaudited financial results reviewed by M/s. CNGSN & Associates LLP, the statutory auditors. The Board also noted the re-appointment of Dr. Ennarasu Karunesan as Non-Executive Director, who retires by rotation. Dr. Karunesan brings over 35 years of experience in infrastructure and maritime sectors.

The company scheduled its 78th Annual General Meeting for September 29, 2026, to be conducted via Video Conferencing/Other Audio Visual Means. Ms. Vidhya Sivakumar of M/s. Vidhya & Associates was appointed as the Scrutinizer for the meeting.

Coromandel Engineering Company Limited has received shareholder approval for four material related party transactions and the appointment of a new director through a postal ballot process concluded on July 11, 2026. The resolutions, which sought approval for transactions with entities such as Silver Sands Beach Resort and Accord Distilleries And Breweries Private Limited, were passed with overwhelming support. Additionally, Dr. Swetha (DIN: 01728751) was appointed as a Director (Non-Executive – Non-Independent) of the company.

The postal ballot was conducted via remote e-voting from June 11, 2026, to July 10, 2026, under the supervision of scrutinizer Vidhya Sivakumar of M/s. Vidhya & Associates. A total of 51,358 valid votes were polled for the resolutions concerning related party transactions with Silver Sands Beach Resort, Accord Distilleries And Breweries Private Limited, and Bharath Institute Of Higher Education & Research. In each of these cases, 99.85% of the votes were cast in favour, while 0.15% were against. Promoter votes were treated as invalid for these resolutions as the group was interested in the agenda.

For the resolution approving material related party transactions with Mrs. Kalaiarasi, a relative of a director, 24,765,737 valid votes were cast, with 99.999% in favour and 0.001% against. The appointment of Dr. Swetha also received 24,765,737 valid votes, with an identical 99.999% approval rate. No invalid votes were recorded for these two resolutions. The total number of shareholders on the record date of June 5, 2026, was 4,111.

Voting Results Summary

The scrutinizer confirmed that all votes were scrutinized and processed based on reports generated by the e-voting system provided by KFin Technologies Limited. The results were announced by G V Manimaran, Chairman and Managing Director, and will be communicated to BSE Limited. The company has complied with the provisions of Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the Companies Act, 2013 regarding the postal ballot process.