Ecoboard Industries reported a net loss of ₹364.66 lakh for the quarter ended June 30, 2026, widening from a loss of ₹336.29 lakh in the corresponding period of the previous fiscal year. Despite a significant surge in revenue from operations to ₹1,120.48 lakh from ₹163.76 lakh year-on-year, the company’s expenses grew at a faster pace, resulting in a pre-tax loss of ₹364.66 lakh. The results were reviewed by the statutory auditors, Chaturvedi SK & Fellows LLP, and approved by the Board of Directors on August 10, 2026.

The Board meeting also addressed key governance changes, including the resignation of M/s. R Kabra and Co LLP as internal auditor due to professional commitments. The company appointed M/s. T P Ostwal Maheshwari & Associates LLP (TPOM), Chartered Accountants, as the new internal auditor for the financial year 2026–27. Additionally, the Board approved the Annual Report and the Notice for the Annual General Meeting (AGM) for the financial year 2025–26.

Financial Performance

Revenue from operations jumped 585% year-on-year to ₹1,120.48 lakh, reflecting strong operational activity. However, total expenses increased to ₹1,487.02 lakh from ₹507.16 lakh in the same quarter last year. Cost of materials consumed stood at ₹605.80 lakh, while employee benefits expenses rose to ₹114.15 lakh from ₹75.66 lakh. Other expenses remained a significant component at ₹447.54 lakh.

Segment Analysis

The Eco Build (Particle Board) segment contributed ₹959.02 lakh to revenue, a substantial increase from ₹41.72 lakh in Q1FY26. However, this segment reported a profit before interest and tax (PBIT) loss of ₹364.76 lakh. In contrast, the Eco Energy (Bio System) segment generated ₹161.46 lakh in revenue and turned profitable with a PBIT of ₹26.22 lakh, improving from a loss of ₹13.11 lakh in the prior year.

What the Numbers Show

While top-line growth is robust, the widening net loss indicates that operating leverage has not yet materialized. The Eco Energy segment’s shift to profitability provides a positive counterbalance to the losses in the core Eco Build business. The company’s basic earnings per share (EPS) stood at -₹1.38, compared to -₹1.22 in the previous year.

Regulatory Disclosures

The statutory auditor highlighted ongoing litigation matters that have not been provided for in the books. These include:

• An excise duty demand of ₹1,114.64 lakh (excluding interest and penalties) related to lamination papers for years 2008-09 to 2017-18, currently under appeal at the Supreme Court of India.
• Income tax demands of ₹510.44 lakh for assessment years 2017-18 and 2018-19, appealed before the Income Tax Appellate Tribunal (ITAT).
• An income tax demand of ₹179.45 lakh for assessment year 2023-24, appealed before the Commissioner of Income Tax (Appeals).

No provision has been made for these liabilities pending the outcome of the appeal proceedings.

Ecoboard Industries Limited has accepted the resignation of M/s. R Kabra & Co LLP as its internal auditor, effective from the close of business hours on July 29, 2026. The departure marks the end of the firm’s engagement for the financial year 2025-26, with the company now required to appoint a successor to ensure continuity in its internal audit functions.

The resignation was communicated to the Board of Directors via a letter dated July 29, 2026, signed by Manjulatha Boob, Partner at R Kabra & Co LLP. The firm stated that preoccupation with other professional commitments prevents it from devoting the necessary time and attention to discharge its duties with due diligence. This disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Resignation Details

The following table outlines the key details of the auditor’s resignation as disclosed in the filing:

In compliance with SEBI Circular No. SEBI/HO/CFD/CFD-POD-1/P/CIR/2023/123 dated July 13, 2023, and Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, Ecoboard Industries submitted the requisite details to BSE Limited on July 30, 2026. Praveen Kumar Raju Gottumukkala, Whole Time Director and CFO of Ecoboard Industries, signed the intimation letter.

No Material Issues Disclosed

Crucially, R Kabra & Co LLP confirmed in its resignation letter that the decision was solely based on professional workload constraints. The firm explicitly stated that there were no instances of fraud, non-cooperation by management, or any other matters that would require reporting to the Board or Audit Committee under Section 143(12) of the Companies Act, 2013. This clarification helps mitigate concerns regarding potential governance red flags often associated with sudden auditor changes.

What the Numbers Show

While this event does not involve financial metrics, the timing is notable. The resignation occurs during the financial year 2025-26, requiring the Board to initiate the appointment process for a new internal auditor at the earliest to avoid discontinuity in the internal audit function. R Kabra & Co LLP has offered full cooperation to the incoming auditor to ensure a smooth handover, minimizing operational disruption during the transition period.