Kundan Minerals and Metals Limited (formerly Eastern Sugar & Industries Limited) reported a net profit of ₹268.9 lakh for the quarter ended June 30, 2026, a significant improvement from the ₹52.8 lakh profit recorded in the corresponding quarter of FY25. Despite the sharp rise in profitability, total income from operations contracted by 36% year-on-year to ₹95,238 lakh, down from ₹15,114 lakh in Q1FY25.

The company’s financial performance reflects diverging trends in revenue and bottom-line metrics. While operational income dropped substantially compared to the prior year quarter, pre-tax profits surged to ₹319.4 lakh from ₹78.8 lakh in Q1FY25. This divergence suggests improved cost management or favorable non-operational adjustments, although specific drivers were not detailed in the extract.

Financial Performance Overview

The consolidated results highlight a recovery in earnings despite a shrinking top line. The net profit after tax stood at ₹268.9 lakh, compared to ₹52.8 lakh in the previous year’s quarter. For the full year ended March 31, 2026, the company posted a net profit of ₹1,081.5 lakh on revenues of ₹47,573.9 lakh.

Strategic Developments and Regulatory Status

Kundan Minerals operates exclusively in the "Precious metals and related products" segment. During the fiscal year, its subsidiary, Kundan Venture FZCO, acquired a controlling interest of 99% in West Africa Exploration & Mining. The consideration was transferred on May 13, 2026, marking the date control was obtained. The acquisition has been accounted for under Indian Accounting Standards (Ind AS), with foreign subsidiary financial statements translated using closing exchange rates for assets and liabilities.

The holding company also recognized interest income from its associate, Kundan Gold Mines Private Limited. This interest cost was capitalized by the associate as part of exploration intangible assets under development, in accordance with Ind AS. Consequently, the interest income was not eliminated against the share of profit or loss of the associate in the consolidated financial statements.

Corporate Governance and Compliance

The unaudited consolidated financial results were reviewed by the Audit Committee and approved by the Board of Directors on August 13, 2026. The statutory auditors carried out a limited review of the results.

The company remains in a transitional phase regarding its market listing. Although the National Company Law Tribunal (NCLT) approved the resolution plan on October 4, 2023, trading approval for equity shares is still awaited from stock exchanges. Additionally, an Income Tax department survey under Section 133A was conducted on group companies on January 28, 2026.

What the Numbers Show

The data reveals a stark contrast between revenue contraction and profit expansion. With total income falling 36% while net profit rose over fourfold, the company’s profitability appears increasingly decoupled from operational scale. This pattern may indicate that fixed costs have been optimized or that non-operational income streams are playing a larger role in the bottom line, warranting closer scrutiny of the composition of pre-tax profits in future filings.

Kundan Minerals and Metals Limited accepted the resignation of Ms. Shefali Kesarwani as an Independent Director, effective from the close of business hours on July 1, 2026. The resignation follows a disclosure submitted to the stock exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Ms. Kesarwani cited preoccupation and other personal commitments as the reasons for her departure.

The company confirmed that Ms. Kesarwani was not a member of any committee, and consequently, there is no cessation from any committee positions. In her resignation letter, she confirmed that there are no material reasons for her resignation other than those stated. The intimation was signed by Sonica Verma, Company Secretary and Compliance Officer.

Resignation Details

The filing provided specific details regarding the change in the board composition as required under Regulation 30. The table below summarizes the key particulars of the cessation.

Ms. Kesarwani requested that the company intimate the Registrar of Companies and Stock Exchanges regarding her resignation at the earliest. She expressed her gratitude to the Board and committee for the support extended during her tenure.