Kriti Industries (India) Limited reported a standalone net loss of ₹227.59 lakh for the quarter ended June 30, 2026, marking a significant reversal from the net profit of ₹720.09 lakh recorded in the corresponding period of FY26. The decline was driven by a 22.7% year-on-year drop in revenue from operations to ₹1,731.12 lakh, while total expenses rose to ₹1,764.97 lakh from ₹2,175.10 lakh in Q1FY26. Consolidated results showed a net loss of ₹221.08 lakh compared to a profit of ₹725.84 lakh in Q1FY26.

The Board of Directors approved the unaudited financial results on August 11, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors M Mehta & Company issued a limited review report under Standard on Review Engagements (SRE) 2410, confirming that the statements were prepared in accordance with Ind AS 34 and other generally accepted accounting principles in India.

Financial Performance Overview

Revenue from operations stood at ₹1,731.12 lakh for the quarter, down from ₹2,240.56 lakh in Q1FY26. Other income decreased sharply to ₹35.40 lakh from ₹69.16 lakh. Total income for the standalone entity was ₹1,734.66 lakh. On the expense side, cost of materials consumed was ₹7,27.42 lakh, and changes in inventories contributed ₹7,08.75 lakh. Employee benefits expense remained relatively stable at ₹90.76 lakh. Finance costs increased slightly to ₹39.73 lakh from ₹46.85 lakh in the prior year quarter.

The company incurred a pre-tax loss of ₹30.31 lakh, compared to a profit of ₹72.37 lakh in Q1FY26. Tax expenses included a deferred tax benefit of ₹7.55 lakh. Consolidated results reflected a share in the net loss of associate FP Elite Energy Private Limited amounting to ₹5.70 lakh.

ESOP Grant and Corporate Actions

In addition to financial results, the Board approved the grant of 1,00,000 Employee Stock Options (ESOPs) under the Kriti Industries Employee Stock Option Plan 2024. The options were granted at an exercise price of ₹67.62 per share, based on the closing price on the National Stock Exchange of India Limited on August 10, 2026. Each option is convertible into one equity share with a face value of ₹1. The vesting schedule requires a minimum period of one year and a maximum of five years from the date of grant. Exercise must occur within five years from vesting.

What the Numbers Show

The widening loss despite lower absolute expenses highlights a significant revenue contraction. Revenue declined by over ₹500 lakh year-on-year, while cost structures did not reduce proportionately. The sharp drop in other income—from ₹69.16 lakh to ₹35.40 lakh—further pressured top-line performance. The consolidated loss was marginally higher than the standalone loss due to the associate’s contribution, indicating limited offsetting gains from group entities. Investors should monitor whether the revenue decline reflects sector-wide demand softness or company-specific execution challenges.

Kriti Industries (India) Limited has scheduled its 36th Annual General Meeting (AGM) for Wednesday, August 12, 2026, at 3:00 P.M. IST. The meeting will be conducted through Video Conferencing (VC) or Other Audio Visual Means (OAVM). Shareholders will vote on the re-appointment of Shiv Singh Mehta as Chairman and Managing Director and the ratification of the Cost Auditor's remuneration. The company reported a return to profitability in the financial year 2025-26, with a standalone profit after tax of ₹106.68 lakh compared to a loss of ₹449.54 lakh in the previous year.

E-Voting and Scrutinizer Details

Remote e-voting will commence on August 9, 2026, at 9:00 A.M. and conclude on August 11, 2026, at 5:00 P.M. The cut-off date for determining e-voting entitlement is August 5, 2026. Central Depository Services (India) Limited (CDSL) has been appointed as the agency providing the e-voting platform. CS Ishan Jain has been appointed as the Scrutinizer to oversee the e-voting process.

Re-appointment of Chairman and Managing Director

The board has proposed the re-appointment of Shiv Singh Mehta as Chairman and Managing Director for a term of three years, effective from October 1, 2026, to September 30, 2029. Mr. Mehta, who is above the age of 70, holds 20,67,299 equity shares, representing 3.92% of the total paid-up capital. The resolution requires shareholder approval via special resolution. The proposed remuneration includes a salary of up to ₹6.50 lakh per month, perquisites and allowances of up to ₹0.65 lakh per month, and a commission of up to 4% of net profits.

Financial Performance

The company reported a return to profitability in the financial year 2025-26. The standalone profit after tax for the year was ₹106.68 lakh, compared to a loss of ₹449.54 lakh in the previous year. Total turnover or income stood at ₹58,736.73 lakh for 2025-26, down from ₹72,190.67 lakh in 2024-25. The board attributed the previous year's loss to a decrease in institutional sales and a downward trend in PVC prices.

Cost Auditor Ratification

Shareholders will consider an ordinary resolution to ratify the remuneration of the Cost Auditor for the financial year 2026-27. M/s Dhananjay V. Joshi & Associates, Cost Accountants, has been appointed to conduct the cost audit. The remuneration to be ratified is ₹35,000 plus applicable taxes and reimbursement of out-of-pocket expenses at actual.