Garg Furnace reported a 34.8% increase in consolidated net profit to ₹1,059.01 lakh for the financial year ended March 31, 2026, compared to ₹763.59 lakh in the previous year. The company's revenue from operations for the year stood at ₹29,460.97 lakh, up from ₹26,161.49 lakh in FY25. The board of directors approved the audited financial results for both standalone and consolidated operations in a meeting held on May 30, 2026.

Standalone Financial Performance

For the standalone entity, net profit for FY26 rose to ₹1,029.27 lakh from ₹763.59 lakh in the prior year. Revenue from operations increased to ₹28,929.97 lakh from ₹26,161.49 lakh. Total income for the year was recorded at ₹28,980.01 lakh. The company reported a basic earnings per share (EPS) of ₹16.36 for the year, compared to ₹15.88 in the previous year.

Consolidated Results

The consolidated financial results include the figures for subsidiary Vaneera Industries Limited, which was acquired on August 22, 2025. Profit for the period attributable to the owners of the company was ₹1,044.50 lakh. Total comprehensive income for the year stood at ₹1,059.78 lakh. The consolidated balance sheet as of March 31, 2026, showed total assets of ₹16,470.30 lakh and total equity and liabilities of ₹16,470.30 lakh.

Operational Metrics and Cash Flows

The company's finance costs for the consolidated results were ₹45.25 lakh, while depreciation and amortization expenses amounted to ₹183.98 lakh. The net cash flow from operating activities for the consolidated entity was a negative ₹1,379.85 lakh, primarily due to changes in working capital. Investing activities resulted in a net outflow of ₹7,209.90 lakh, largely attributed to investments and capital expenditure.

Auditor's Report and Compliance

M/s Ashwani & Associates, Chartered Accountants, the statutory auditors, issued an unmodified opinion on both the standalone and consolidated financial results. The audit was conducted in accordance with the Standards on Auditing specified under the Companies Act, 2013. The company confirmed that the incremental impact of the new labour codes, effective from November 21, 2025, was not material and has been recognized in the financial results.

Garg Furnace Limited has formally declared its non-applicability under the Large Corporate Framework as mandated by SEBI regulations. The company submitted its declaration to BSE Limited on April 14, 2026, confirming its status as on March 31, 2026.

Regulatory Compliance Declaration

The declaration pertains to SEBI circular SEBI/HO/DDHS/CIR/P/2018/144 dated October 19, 2023, which addresses "Fund raising by issuance of debt securities by large entities." Under this regulatory framework, companies meeting specific criteria are classified as Large Corporates and must comply with additional disclosure requirements.

Corporate Governance Framework

The SEBI circular establishes criteria for identifying Large Corporate entities, which are subject to enhanced regulatory oversight and disclosure requirements. Companies falling under this classification must adhere to specific guidelines when raising funds through debt securities issuance.

Garg Furnace Limited's declaration confirms that the company does not meet the applicability criteria outlined in the SEBI framework. This classification impacts the company's regulatory obligations and compliance requirements for debt fundraising activities.

Management Communication

Managing Director Devinder Garg signed the official declaration submitted to BSE Limited. The communication formally requested the exchange to acknowledge receipt and maintain the declaration on record. This proactive disclosure demonstrates the company's commitment to regulatory transparency and compliance with SEBI guidelines.

The declaration ensures that stakeholders and regulatory authorities have clear visibility into the company's status under the Large Corporate Framework, facilitating appropriate regulatory treatment for any future debt securities issuance activities.