High Energy Batteries (India) Ltd reported a net loss of ₹181.50 lakhs for the quarter ended June 30, 2026, reversing a net profit of ₹78.36 lakhs in the corresponding period of the previous year. The downturn was primarily driven by a significant contraction in revenue from product sales, which fell to ₹759.62 lakhs from ₹1,326.23 lakhs year-on-year. Alongside the financial results, the Board of Directors approved the voluntary adoption of a Dividend Distribution Policy and reconstituted the Audit Committee effective July 25, 2026.

Financial Performance: Q1FY27 vs Q1FY26

Total income declined to ₹808.87 lakhs in Q1FY27 from ₹1,418.21 lakhs in Q1FY26. While other operating revenues rose to ₹28.81 lakhs from ₹1.03 lakhs, other income dropped sharply to ₹20.44 lakhs from ₹90.95 lakhs. Total expenses decreased to ₹1,052.80 lakhs from ₹1,312.90 lakhs, largely due to a favorable inventory movement of ₹(871.33) lakhs, which offset a rise in cost of materials consumed to ₹1,086.10 lakhs from ₹328.82 lakhs.

Segment Performance and Governance Updates

The Aerospace Naval and Power System Batteries segment remained the sole revenue contributor, reporting ₹788.43 lakhs in revenue compared to ₹1,327.26 lakhs in Q1FY26. The segment recorded a pre-tax and pre-interest loss of ₹(195.91) lakhs, widening from a profit of ₹159.68 lakhs in the prior year quarter. The Lead Acid Storage Batteries segment continued to report no revenue, with its operations remaining suspended.

In corporate governance developments, the Board reconstituted the Audit Committee with Dr. R Subrahmaniya Sivam as Chairman. Members include Cmde. Saroj Kumar Patel (Retd.), Dr. Vijayamohanan K Pillai, Mrs. Jayashree Ajit Shankar, and Mr. C V Ramana. Additionally, the company voluntarily adopted a Dividend Distribution Policy, effective July 25, 2026, although such adoption is not mandatory for the entity.

Auditor's Review and Shareholder Metrics

Statutory auditors Maharaj N R Suresh and Co LLP conducted a limited review of the unaudited results in accordance with Standard on Review Engagements (SRE) 2410. They confirmed no material misstatement or non-compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Earnings per share turned negative at ₹(2.02), down from ₹0.87 in Q1FY26. Paid-up equity share capital remained unchanged at ₹179.28 lakhs. The company confirmed it has no subsidiary, associate, or joint venture entities as of June 30, 2026.

High Energy Batteries (India) Limited reappointed Mr. M. Ignatius as Director (Operations) at its 65th Annual General Meeting (AGM) held on June 27, 2026. Shareholders approved the reappointment of Mr. M. Ignatius, who retires by rotation and has over four decades of experience in battery design and development with the Indian Navy and DRDO. The meeting also declared a dividend of ₹3 per equity share for the financial year 2025–26.

The resolutions passed included the adoption of financial statements for FY 2025–26, the declaration of dividend, the reappointment of Mr. M. Ignatius, and the commission to non-executive directors. A.S. Kalyanaraman, a Practising Chartered Accountant, served as the Scrutinizer for the e-voting process, verifying the results based on reports from Central Depository Services (India) Ltd (CDSL). Remote e-voting commenced on June 24, 2026, and concluded on June 26, 2026.

Voting Results Summary

The table below summarizes the voting results for the four resolutions passed at the AGM:

Resolution Details

The adoption of financial statements and the declaration of dividend received overwhelming support, with 99.9998% of votes in favour. The reappointment of Mr. M. Ignatius (DIN: 08463140) was also approved with 99.9971% of votes in favour. The resolution regarding the commission to non-executive directors saw 99.3298% of votes in favour, with 32,625 votes against.

The Promoter and Promoter Group held 38,60,327 shares and cast 38,60,327 votes in favour of all resolutions. Public institutions cast 5,37,107 votes in favour. Public non-institutions cast 4,70,785 votes in favour of the financial statements and dividend, with 10 votes against. For the reappointment of the director, public non-institutions cast 4,70,645 votes in favour and 140 against. Regarding the commission to non-executive directors, public non-institutions cast 4,38,160 votes in favour and 32,625 against.