Indo Euro Indchem has appointed Paresh Shah as Whole-time Director, effective August 27, 2026. The board also accepted the resignation of Akshit Lakhani from the same role.

The appointment follows a recommendation from the Nomination and Remuneration Committee. Shah will serve a five-year term ending August 26, 2031, subject to shareholder approval at the upcoming Annual General Meeting.

Leadership Changes

Akshit Lakhani resigned citing pre-occupation and other personal commitments. His resignation takes effect from the closure of business hours on August 27, 2026.

Consequently, Lakhani ceases to be a Member of the Audit Committee and Chairman of the Stakeholders Relationship Committee.

New Director Profile

Paresh Shah brings expertise in sales, marketing, and business development. The company highlighted his experience in developing markets and driving sustainable revenue growth.

The company confirmed that Shah is not debarred from holding office by any regulatory authority. There are no inter-se relationships between Shah and other board members.

Indo Euro Indchem Limited reported a significant expansion in top-line growth for the first quarter of FY27, with revenue from operations rising 163% year-on-year to ₹404.64 lakh. However, this growth did not translate into proportional bottom-line gains, as net profit fell 27% to ₹10.84 lakh compared to ₹14.86 lakh in the same period last year. Basic earnings per share (EPS) for the quarter stood at ₹0.12.

The company’s standalone financial results for the quarter ended June 30, 2026, were approved by the Board of Directors on August 12, 2026. The unaudited results were reviewed by Vora & Associates, Chartered Accountants, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

Revenue from operations more than doubled compared to the previous year, reflecting increased trading activity in chemicals and other segments. Total income, including other income, stood at ₹414.46 lakh, up from ₹169.09 lakh in Q1FY26. Other income, however, declined 36% to ₹9.82 lakh from ₹15.34 lakh in the prior period.

Expenses rose sharply alongside revenue. Purchases of stock-in-trade increased to ₹416.71 lakh from ₹176.64 lakh, while changes in inventories provided a credit of ₹75.27 lakh. Other expenses nearly tripled to ₹52.42 lakh from ₹21.34 lakh, contributing to the compression in profitability despite the revenue surge. Finance costs remained negligible at ₹0.02 lakh, and depreciation was recorded at ₹1.04 lakh.

What the Numbers Show

The divergence between revenue growth and profit decline highlights margin pressure in the current quarter. While revenue grew 163%, total expenses grew at a faster pace of 168%. Specifically, other expenses rose significantly while employee benefits and finance costs remained relatively stable. This suggests that the cost structure is scaling faster than the top-line efficiency, resulting in a lower profit conversion rate compared to the previous year.

Corporate Governance

The Board meeting also focused on internal compliance appointments for the financial year 2026-2027:

• Secretarial Auditor: M/s. VKMG & Associates LLP was re-appointed as Secretarial Auditors.
• Internal Auditor: M/s. Moxit & Associates, Chartered Accountants, was re-appointed as Internal Auditors.

The company operates in a single business segment, trading in chemicals and others, making segment-wise disclosure under Ind AS 108 not applicable. Management noted that no provision for doubtful debts was recommended, citing ongoing efforts for recovery from parties.