Darshan Orna announced that its statutory auditor, M/s. Shah Karia and Associates, has resigned effective September 1, 2026. The firm cited personal reasons for the departure, stating there were no concerns regarding the company’s management or affairs.

The resignation creates a casual vacancy in the statutory auditor role. Darshan Orna confirmed that neither the resigning auditor nor the Audit Committee identified any material reasons for the change. Consequently, no deliberation by the Audit Committee was required, and no view from the committee is applicable.

Auditor Tenure and Transition

Shah Karia and Associates was appointed on September 4, 2025, for a term scheduled to expire on March 31, 2030. The firm submitted its latest Limited Review Report for the quarter ended June 30, 2026, dated August 8, 2026, prior to tendering its resignation.

Darshan Orna stated that its Board and Audit Committee will consider the appointment of a new statutory auditor to fill the vacancy in due course. Further details regarding the change have been disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Darshan Orna Limited reported a sharp contraction in profitability for the first quarter of FY26, with net profit plunging 76% year-on-year to ₹5.09 lakh. The Ahmedabad-based company posted revenue from operations of ₹1,246.69 lakh for the quarter ended June 30, 2026, a 16% decline from ₹1,478.24 lakh in Q1FY25. The profit decline was more severe than the revenue drop, indicating significant margin pressure primarily driven by rising input costs.

The Board of Directors approved the unaudited standalone financial results on August 8, 2026, following a review by the Audit Committee. The results were submitted pursuant to Regulation 33 and Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015. Shah Karia & Associates, the independent auditors, issued a limited review report stating that nothing came to their attention to suggest the statement contained material misstatements or failed to disclose required information under Ind AS 34.

Financial Performance Overview

Revenue from operations fell by ₹231.55 lakh compared to the previous year’s corresponding period. However, total expenses decreased only marginally, resulting in a compressed profit before tax of ₹5.99 lakh, down from ₹26.48 lakh in Q1FY25. Tax expense stood at ₹0.90 lakh, leading to the final net profit figure.

What the Numbers Show

The most critical factor behind the profit collapse was the disproportionate rise in the cost of materials consumed. While revenue declined by nearly 16%, the cost of materials surged by 72% to ₹1,074.53 lakh from ₹624.95 lakh in Q1FY25. This inversion suggests either a significant shift in product mix towards lower-margin items or a substantial increase in raw material prices that could not be passed on to customers. Additionally, changes in inventories added ₹163.02 lakh to expenses in Q1FY26, compared to ₹804.18 lakh in Q1FY25, indicating different inventory management dynamics between the two periods. Other income remained negligible at ₹0.00 lakh, offering no offset to the operational pressures.

Operational and Corporate Updates

Darshan Orna Limited operates within a single primary business segment. The company’s paid-up equity share capital remained unchanged at ₹2,001.17 lakh, with a face value of ₹2 per share. Basic and diluted earnings per share (EPS) for continuing operations were ₹0.01, down from ₹0.04 in Q1FY25.

In compliance with SEBI (Prohibition of Insider Trading) (Amendment) Regulations, 2018, the trading window remains closed until 48 hours after the declaration of financial results. The trading window had been closed since July 1, 2026. The Board meeting commenced at 12:00 P.M. and concluded at 1:00 P.M. on August 8, 2026.