Kothari Fermentation and Biochem Limited announced that its internal auditor, M/s. Arun K. Garg & Associates, has resigned effective September 25, 2026. The firm cited pre-occupation and other professional commitments as the reason for stepping down from its role for Financial Year 2026-27.

The resignation was tendered via a letter dated September 22, 2026, which the company received on September 25, 2026. This disclosure was made to the BSE in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Resignation Details

The company confirmed that the cessation of services is immediate. The following table outlines the key details disclosed in the regulatory filing:

Next Steps

Kothari Fermentation stated it is currently in the process of identifying and appointing a new internal auditor. This action will be taken in accordance with applicable provisions. The company will provide a separate intimation regarding the new appointment once finalized.

The resigned firm, represented by partner CA Arun Kumar Garg, also issued a no-objection certificate for the appointment of any other Chartered Accountant firm to fill the casual vacancy created by their resignation.

Kothari Fermentation & Biochem reported a net loss of ₹298.93 lakh for FY26, reversing the ₹80.99 lakh profit from FY25. Revenue fell 1.84% to ₹11,213.19 lakh amid rising input costs and pricing pressure. The company has confirmed its 36th Annual General Meeting (AGM) will be held on September 30, 2026.

The AGM notice, published in Financial Express and Jansatta on September 8, 2026, confirms the meeting will take place via video conference or other audio-visual means at 11:30 am. This disclosure complies with Regulations 30 and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

The operating profit margin contracted sharply to 0.21% from 4.77% in FY25. Profit before tax swung to a loss of ₹346.23 lakh from a profit of ₹193.86 lakh. Finance costs rose marginally to ₹369.93 lakh, while depreciation increased to ₹700.24 lakh. The current ratio improved to 1.91 from 1.08 due to lower current liabilities.

What the Numbers Show

Despite a 5.38% rise in production volume, revenue declined, signaling compressed average selling prices or a shift to lower-margin products. Operating profit before interest and tax (PBDIT) dropped significantly to ₹723.94 lakh from ₹1,196.51 lakh, indicating that volume growth could not offset rising costs. Foreign exchange earnings fell to nil from ₹180.50 lakh in FY25, suggesting reduced export activity.

Corporate Governance and Remuneration

The AGM will seek approval for revised remuneration for Chairman and Managing Director Pramod Kumar Kothari and Whole-Time Director Kavita Devi Kothari, effective April 1, 2026, to March 31, 2028. Mr. Kothari’s proposed monthly salary is ₹6,00,000, while Mrs. Kothari’s is ₹5,75,000. Both packages include minimum remuneration provisions regardless of profitability.

Dr. Rajiv Agarwal resigned as an Independent Director on August 13, 2025. Varun Kumar was appointed as an Additional Director and subsequently as an Independent Director on September 30, 2025. The company did not recommend a dividend for FY26.