Earkart Limited reported a 25.35% increase in total revenue to ₹5,403.53 lakh for FY26, driven by growth in both government and private business segments. Despite the top-line expansion, profit after tax (PAT) declined by 28.33% to ₹493.23 lakh, primarily due to a 37.01% rise in total expenditure which outpaced revenue growth. The company’s financial performance reflects its ongoing investments in expansion, R&D, and operational infrastructure to support long-term scalability.

The company’s revenue bifurcation highlights a strong dependence on government orders, which contributed 61.32% of the total revenue at ₹3,313.38 lakh, while the private segment accounted for 38.68% at ₹2,090.15 lakh. Geographically, Uttar Pradesh remained the largest market, generating 76.47% of the total revenue at ₹4,132.13 lakh, followed by Delhi at 8.57% and Gujarat at 5.84%. This concentration underscores the impact of government procurement channels on the company's top line.

Financial Performance

The surge in total expenditure to ₹4,568.38 lakh, up from ₹3,334.35 lakh in FY25, significantly impacted profitability metrics. EBITDA fell by 14.12% to ₹845.80 lakh, with the EBITDA margin contracting to 15.65% from 22.85% in the previous year. Consequently, the PAT margin also narrowed to 9.13% from 15.96%. Earnings per share (EPS) dropped to ₹3.99 from ₹6.59 in FY25.

Strategic Developments

During FY26, earkart focused on strengthening its operational foundation and global presence. The company incorporated Earkart Inc., a wholly-owned subsidiary in the USA, to facilitate international business opportunities. Additionally, it secured a patent for its “Smart Sound Treatment and Diagnosis System and Method Thereof,” reinforcing its proprietary technology platform. The company also expanded its Shop-in-Shop network to 82 clinics across 40+ cities, enhancing its reach in Tier 2 and Tier 3 regions.

Balance Sheet Overview

The company’s balance sheet size expanded significantly, with total assets growing to ₹6,949.20 lakh as of March 31, 2026, compared to ₹3,024.43 lakh in the previous year. This growth was supported by a substantial increase in reserves to ₹5,059.13 lakh and a rise in share capital to ₹1,375.39 lakh. Fixed assets also saw a notable increase, reaching ₹587.75 lakh, reflecting investments in manufacturing and operational capabilities.

Earkart Limited has expanded its global footprint by incorporating a foreign subsidiary, Earkart Health Limited, in the United Kingdom. The new entity was established on June 8, 2026, with a Certificate of Incorporation issued by the relevant UK authorities. This strategic move allows the parent company to enter the healthcare sector, which aligns with its main line of business, ensuring operational synergy and market expansion.

The subsidiary has been incorporated to provide healthcare services and sell healthcare products and other related items. Earkart Health Limited is classified as a related party transaction under the Companies Act, 2013, and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. However, the Promoters, Promoter Group, and other Group Companies hold no interest in the transaction other than the stated shareholding.

Earkart Limited subscribed to 650 equity shares of GBP 10 each, constituting 65% of the paid-up share capital of Earkart Health Limited. The subscription was made entirely in cash, amounting to a total investment of GBP 6,500. The shares were acquired at face value, and the subsidiary currently holds an authorised and paid-up share capital of GBP 10,000.

Financial and Operational Details

The incorporation did not require any specific governmental or regulatory approvals beyond standard registration formalities in the United Kingdom. As a newly incorporated entity, Earkart Health Limited currently reports nil turnover and has no active business operations. The company is poised to commence activities in the healthcare industry, focusing on services and allied products.

The disclosure was submitted to BSE Limited in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Preeti Srivastava, Company Secretary & Compliance Officer of Earkart Limited, confirmed the development on June 22, 2026. The information is now available on the company's official website.