Kanel Industries Limited reported a net loss of ₹8.56 lakh for the quarter ended June 30, 2026 (Q1FY26), widening from a ₹7.47 lakh loss in the corresponding period of FY25. The Ahmedabad-based company recorded total revenue of ₹0.06 lakh, comprising entirely of other income, as revenue from operations remained nil. Alongside the financial results, the Board of Directors approved significant leadership changes, appointing Shagun Rathi as Company Secretary, Compliance Officer, and CFO, while promoting Keyoor Madhusudan Bakshi from CFO to Chief Executive Officer.

The leadership transition took effect on August 12, 2026, following a board meeting held at the company’s registered office. Ms. Shagun Rathi, a 34-year-old commerce graduate with over seven years of experience, assumes her new roles immediately. Mr. Keyoor Bakshi, who has over 40 years of experience in corporate laws and finance, continues in an expanded capacity as CEO. The Board also approved the Notice and Annual Report for FY26.

Financial Performance

Kanel Industries’ operational activity remained dormant during the quarter, with no revenue generated from core operations. The company’s total expenses stood at ₹8.62 lakh, driven primarily by other expenses of ₹5.82 lakh and depreciation charges of ₹2.35 lakh. Employee benefit expenses were recorded at ₹0.45 lakh.

The previous quarter, Q4FY25, had shown a profit of ₹2.48 lakh, largely aided by extraordinary items of ₹12.87 lakh. In contrast, Q1FY26 saw no such exceptional gains, resulting in a pre-tax loss that flowed directly to the bottom line. Year-to-date losses for FY26 stand at ₹47.93 lakh.

What the Numbers Show

The financial data indicates a continued lack of operational momentum for Kanel Industries. With revenue from operations at zero for three consecutive quarters (Q1FY25, Q4FY25, and Q1FY26), the company’s primary cost drivers are fixed overheads such as depreciation and employee benefits rather than variable production costs. The absence of revenue suggests the company is either in a transitional phase or maintaining minimal operations while preserving capital. The widening loss year-over-year, despite similar low revenue levels, points to slightly higher fixed expense absorption in the current quarter compared to FY25.

Corporate Governance and Compliance

The unaudited standalone financial results were prepared in accordance with Ind AS and reviewed by the statutory auditors, N.S. Nanavati & Co. Chartered Accountants, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Audit Committee reviewed the results before their approval by the Board. Nitesh Shirishchandra Nanavati, proprietor of N.S. Nanavati & Co., issued the limited review report on August 12, 2026.

Kanel Industries has secured Board approval for a rights issue of equity shares worth up to ₹17 crore, marking a definitive step in its capital raising strategy. The decision was taken during the Board of Directors meeting held on July 30, 2026, in Ahmedabad. This move aims to strengthen the company’s balance sheet and fund future expansion plans, with the final terms including pricing and entitlement ratios to be determined by the Rights Issue Committee. The issuance is subject to regulatory approvals under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

In addition to the capital raise, the Board noted significant changes in its composition. Ms. Pooja Khakhi (DIN: 07522176) was appointed as an Additional Director in the category of Non-Executive Independent Director, effective July 30, 2026. Concurrently, the Board noted the resignation of Ms. Jasmin Doshi (DIN: 08686876) from her position as Non-Executive Independent Director. Ms. Doshi cited a change in management and control following the completion of an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, as the reason for her departure. Her resignation is effective from the close of business hours on July 30, 2026.

Rights Issue Details

The approved rights issue involves the offer and issuance of fully paid-up equity shares with a face value of ₹10 each. The total amount not exceeding ₹17 crore will be raised from eligible equity shareholders as on the record date, which will be notified subsequently. The Board or the designated Rights Issue Committee will decide the specific terms and conditions, including the rights issue price, rights entitlement ratio, record date, timing, and payment terms.

Board Composition Changes

The appointment of Ms. Pooja Khakhi brings additional expertise in corporate governance and compliance to the Board. She is a qualified Company Secretary and Law Graduate with over 10 years of experience in corporate laws, secretarial compliance, and SEBI regulations. She holds NISM certifications in Equity Derivatives and Securities Intermediaries Compliance. Ms. Khakhi is not related to any existing directors and is not debarred from holding office by any SEBI order.

Following the resignation of Ms. Jasmin Doshi, the Board reconstituted the Audit Committee, Stakeholders Relationship Committee, and Nomination and Remuneration Committee by replacing Ms. Doshi with Ms. Khakhi. Ms. Doshi confirmed that there were no material reasons for her resignation other than those stated in her letter, which cited other preoccupations and the change in control.

Regulatory Compliance

The intimation regarding the Board’s decisions was issued pursuant to Regulation 30 read with Schedule III of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. The disclosure also references SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Keyvor Bakshi, Director of Kanel Industries Limited (DIN: 00133588), digitally signed the communication. The company has uploaded the requisite details on its official website, www.kanel.in , ensuring transparency and adherence to listing norms.