Ishan Dyes & Chemicals Limited reported a standalone net profit of ₹146.49 lakh for the quarter ended March 31, 2026, reversing the loss of ₹116.20 lakh recorded in the corresponding quarter of the previous year. However, for the full financial year ended March 31, 2026, the company posted a net loss of ₹710.85 lakh, a significant decline from the net profit of ₹108.50 lakh in FY25. The financial results were approved by the Board of Directors on May 28, 2026.

Financial Performance

Revenue from operations for the quarter stood at ₹3,175.53 lakh, a substantial increase from ₹1,673.11 lakh in the prior year quarter. For the full year, revenue from operations decreased to ₹7,347.13 lakh from ₹10,146.96 lakh in FY25. Total income for the year was ₹7,663.63 lakh, down from ₹10,446.85 lakh in the previous year.

The company’s total expenses for FY26 were ₹8,159.83 lakh, compared to ₹10,234.97 lakh in the preceding year. Profit before tax for the quarter was ₹236.27 lakh, whereas the full year resulted in a loss before tax of ₹496.20 lakh. Basic earnings per share (EPS) for the quarter was ₹0.56, while the annual EPS was a loss of ₹3.00.

Audit Qualifications

Statutory Auditors M/s A R Sulakhe & Co issued a qualified opinion on the standalone financial results. The auditors identified two material qualifications. First, the company advanced a loan of ₹1,460.22 lakh to a related party, Cluster Enviro Private Limited. The auditors noted that the related party has negative net worth and no active business due to legal issues. Consequently, the auditors stated that a provision of ₹1,460.22 lakh is required under Ind AS 109. Had this provision been made, the net loss for the year would have been higher by ₹1,460.22 lakh.

Second, the company valued certain inventories (finished goods) at Net Realisable Value (NRV) amounting to ₹2,759.49 lakh, which exceeded their cost. The auditors stated this is not in conformity with Ind AS 2, which requires measurement at the lower of cost and NRV. The auditors opined that the inventory value should be reduced by ₹284.78 lakh, which would have increased the net loss for the year by ₹284.78 lakh.

Corporate Governance

The Board appointed M/s. H D Panchal & Co., Chartered Accountants, as the Internal Auditor for the financial year ending March 31, 2027. The appointment was based on the recommendation of the Audit Committee. The company stated that the internal auditor is not related to any of the directors of the company.

Ishan Dyes and Chemicals Ltd received an advisory letter from the National Stock Exchange of India Limited (NSE) regarding a delay in implementing the lock-in period for warrants allotted on a preferential basis. The exchange identified a non-compliance with the 3rd proviso of Regulation 167(1) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, which mandates a one-year lock-in from the date of allotment for unlisted convertible securities or warrants.

The company allotted 45,84,872 warrants on September 20, 2025. However, the lock-in was enforced from December 6, 2025, resulting in a delay of more than two months from the date of allotment. The company attributed this delay to operational issues faced while obtaining the International Securities Identification Number (ISIN) and completing corporate action procedures.

Despite the delay, the company confirmed that no purchase or sale of the affected warrants occurred during the period between allotment and the implementation of the lock-in. The NSE issued the advisory letter on June 11, 2026, which was received by the company the following day.

The disclosure, made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, clarified that no fines or penalties were imposed. Consequently, the advisory letter has no material impact on the financials or operations of Ishan Dyes and Chemicals Ltd. The exchange has advised the company to exercise due diligence in future applications to avoid repetition of such violations.

Details of the Non-Compliance

The company has been directed to place the advisory letter before its Board of Directors at the upcoming board meeting.