Deep Polymers Limited reported a 28.7% increase in net profit to ₹665.59 lakh for the financial year ended March 31, 2026, compared to ₹517.34 lakh in the previous year. Revenue from operations for the year rose marginally to ₹9,872.42 lakh from ₹9,817.16 lakh in FY25. The board approved the audited financial results for the fourth quarter and year ended March 31, 2026, at a meeting held on May 30, 2026.

For the quarter ended March 31, 2026, the company recorded a net profit of ₹263.72 lakh, a significant increase from ₹39.19 lakh in the same period last year. Revenue from operations for the quarter stood at ₹2,655.49 lakh, up from ₹2,299.99 lakh in Q4FY25. Total income for the quarter increased to ₹2,891.06 lakh from ₹2,359.37 lakh in the corresponding quarter of the previous year.

Auditor's Report

M/s. S N Shah & Associates, Statutory Auditors, issued an audit report with a modified opinion. The auditors qualified their opinion regarding the non-provision of doubtful debts amounting to ₹308.06 lakh on trade receivables for which legal proceedings have been initiated. Additionally, the company did not restate monetary items denominated in foreign currencies at the exchange rates prevailing at the end of the reporting period as required by Ind-AS 21.

Financial Highlights

The company's basic earnings per share (EPS) for FY26 increased to ₹7.21 from ₹2.11 in the previous year. For the quarter ended March 31, 2026, basic EPS stood at ₹5.55 compared to ₹0.14 in the same quarter of the previous year. Other equity excluding revaluation reserve rose to ₹8,076.58 lakh as of March 31, 2026, from ₹6,335.79 lakh a year ago.

The intimation was signed by Rameshbhai Bhimjibhai Patel, Managing Director of Deep Polymers Limited.

Deep Polymers Limited has released its unaudited financial results for the third quarter ended December 31, 2025, revealing a challenging performance compared to the same period last year. The Gujarat-based polymer manufacturer reported decreased revenue and profitability, though it maintained positive earnings across its operational segments.

Financial Performance Overview

The company's financial metrics for Q3FY26 showed a mixed performance when compared to the previous year:

The decline in revenue from operations by Rs. 152.01 lakhs reflects challenging market conditions, while the significant drop in net profit of Rs. 55.16 lakhs indicates pressure on operational efficiency and cost management.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, Deep Polymers showed resilience despite quarterly challenges:

The nine-month figures demonstrate a more moderate decline compared to the quarterly performance, suggesting that Q3FY26 faced particular challenges that impacted the overall trajectory.

Segment-wise Performance

Deep Polymers operates through three main segments, each showing different performance patterns:

The Rakanpur segment, being the largest contributor, experienced a revenue decline but maintained strong profitability. The Santej segment showed reduced revenue but positive results, while Hajipur, despite revenue growth, continued to report losses.

Auditor Qualifications and Concerns

The statutory auditors, S. N. Shah & Associates, issued a qualified opinion highlighting two significant concerns:

Trade Receivables Issue: The company has trade receivables of Rs. 166.72 lakhs under legal recovery proceedings. The auditors believe adequate provision for doubtful debts should have been made, which would have resulted in an overstatement of profit and assets by Rs. 166.72 lakhs.

Foreign Currency Compliance: The company has not restated foreign currency-denominated items as per Ind-AS-21 requirements, leading to potential overstatement or understatement of foreign currency items and consequent impact on profits.

Impact of Audit Qualifications

The audit qualifications significantly affect the reported figures:

These adjustments would transform the reported profit into a loss, highlighting the materiality of the audit concerns.

Management Response

Management has acknowledged the audit qualifications and stated that appropriate measures have been taken for recovery of outstanding receivables through legal recourse. Regarding foreign currency compliance, management indicated they will take appropriate action in the coming year to ensure compliance with Ind-AS-21 requirements.

The Board of Directors approved these results at their meeting held on February 5, 2026, with the meeting conducted from 1:30 PM to 2:15 PM. The company maintains its paid-up equity share capital of Rs. 2,418.00 lakhs with a face value of Rs. 10 per share.