Euro Leder Fashion Limited reported a net profit of ₹1.79 lakh for the financial year ended March 31, 2026, a sharp decline from ₹19.44 lakh in the previous year. Revenue from operations for the year rose to ₹2,733.80 lakh compared to ₹1,840.48 lakh in FY25. For the quarter ended March 31, 2026, the company reported a net loss of ₹12.14 lakh, contrasting with a net profit of ₹16.89 lakh in the corresponding quarter of the previous year. The company recognized an additional gratuity and leave liability of ₹78.94 lakhs due to the notification of new Labour Codes by the Government of India.

The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 27, 2026. The statutory auditors, Darpan & Associates, issued an audit report with an unmodified opinion on the standalone financial results. The company confirmed that Regulation 23(9) of the SEBI (LODR) Regulations, 2015, is not applicable as its paid-up equity share capital does not exceed ₹10 crore and net worth does not exceed ₹25 crore.

Financial Performance

Total income from operations for FY26 stood at ₹2,970.14 lakh, up from ₹2,024.73 lakh in the previous year. Total expenses for the year increased to ₹2,913.88 lakh from ₹2,003.26 lakh in FY25. The basic earnings per share (EPS) for the year dropped to ₹0.05 from ₹0.50 in the prior year.

Key Financials (₹ in lakhs)

Board Decisions

The Board approved the reappointment of Mr. RM Lakshmanan as Managing Director for a further period of five years effective from June 27, 2026, to June 26, 2031, subject to shareholders' approval. Additionally, Mr. Ravindran Varadarajan was reappointed as a Non-Executive Independent Director for a second term of five years from November 9, 2026, to November 8, 2031. Mr. K. Anand, Chartered Accountant, was appointed as the Internal Auditor for the financial year 2026-27.

Euro-Leder Fashion Limited has disclosed that it is exempt from providing related party transaction disclosures for the financial year ended March 31, 2026. The company communicated this compliance status to BSE Limited on May 27, 2026, citing specific thresholds outlined in the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

The exemption falls under Regulation 15(2) of the SEBI regulations, which relieves certain listed entities from complying with Corporate Governance provisions specified in Regulations 17 to 27 and clauses of Regulation 46. This relief applies specifically to entities whose paid-up equity share capital does not exceed ₹10 crore and whose net worth does not exceed ₹25 crore as on the last day of the previous financial year.

Euro-Leder Fashion confirmed that it falls within category "(a)" of this regulation. The company stated that its paid-up equity share capital and net worth figures remain below the stipulated limits. Consequently, the provisions of Regulation 23(9), which mandates the disclosure of related party transactions, are not applicable to the company for the period in question.

Regulatory Thresholds

The company's eligibility for the exemption is based on the following financial parameters as of the end of the previous financial year:

As a result of this classification, Euro-Leder Fashion is not required to submit the detailed related party transaction disclosures that are typically mandatory for larger listed entities. The company requested that the exchange record this non-applicability for the financial year FY26.