Darjeeling Industries Limited reported a return to profitability in the first quarter of FY27, posting a standalone net profit of ₹29.78 lakh for the period ended June 30, 2026. This marks a significant turnaround from the net loss of ₹17.36 lakh recorded in the same quarter of the previous fiscal year (Q1FY25).

Revenue from operations surged to ₹145.87 lakh, up from ₹74.69 lakh in the preceding quarter (Q4FY26). The company did not report revenue figures for Q1FY25, making year-on-year revenue comparisons unavailable. On a consolidated basis, which includes subsidiary Novva Defence Iinds Limited, the group reported a net profit of ₹25.29 lakh, compared to ₹7.09 lakh in Q4FY26.

Financial Performance

The improvement in profitability was underpinned by higher operational activity and favorable inventory movements. Key financial metrics for the quarter are outlined below:

Other income contributed minimally at ₹0.28 lakh, down from ₹1.45 lakh in the previous quarter. Employee benefit expenses increased to ₹10.69 lakh from ₹4.41 lakh in Q4FY26, reflecting scaled-up operational efforts. Other expenses remained relatively stable at ₹6.99 lakh on a standalone basis.

What the Numbers Show

A notable divergence exists between the cash inflow from operations and the accounting recognition of expenses. While purchases of stock-in-trade amounted to ₹193.70 lakh, the company recorded a negative change in inventory of (₹104.93 lakh). This reduction in inventory levels effectively lowered the cost of goods sold, contributing significantly to the gross margin expansion that drove the return to profitability despite higher absolute purchase volumes compared to the prior quarter.

Capital Raise and Fund Utilization

The Board of Directors approved the receipt of ₹25.00 lakh towards convertible warrants allotted on September 23, 2025. The warrants were issued at a price of ₹16.80 each, including a premium of ₹6.80 per warrant, to non-promoter allottee Dilip Keshrimal Sanklecha.

The company filed a statement confirming no deviation or variation in the utilization of funds raised through the preferential issue of convertible warrants. The proceeds, originally allocated for working capital requirements (₹882.00 lakh) and general corporate purposes (₹294.00 lakh), are being utilized as per the approved objects. During the quarter ended June 30, 2026, an additional tranche of ₹50.00 lakh was received, bringing the cumulative utilization alignment with the stated objectives.

The unaudited financial results were reviewed by Sunit M Chhatbar & Co, Chartered Accountants, and approved by the Board in a meeting held on August 14, 2026.

Darjeeling Industries has accepted the resignation of Ms. Margi Lalitbhai Dedaniya as its Company Secretary and Compliance Officer, effective July 28, 2026. The change in key managerial personnel stems from personal reasons, with no other material factors cited for her departure. This transition marks a shift in the company’s compliance leadership structure.

The intimation was issued to BSE Limited on July 29, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure also references SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. Ashok Dilipkumar Jain, Managing Director of Darjeeling Industries, signed the communication.

Ms. Dedaniya, who holds Membership Number A79078 and ECSIN RA079078G000077978, submitted her resignation letter stating she could not devote sufficient time to the company due to personal commitments. She confirmed that there are no undisclosed material reasons for her resignation beyond those stated in her letter.

Resignation Details

The company noted that Ms. Dedaniya expressed gratitude for the opportunity to serve and extended full support during her tenure. The Board of Directors has acknowledged her resignation with immediate effect from the specified date. Shareholders are advised to note this change in key management personnel for regulatory compliance purposes.