L.K. Mehta Polymers incorporates green energy subsidiary

L.K. Mehta Polymers has approved the incorporation of a wholly owned subsidiary to diversify its business operations into the green and renewable energy sector. The Board of Directors at its meeting held on June 29, 2026, sanctioned the creation of L.K. Mehta Green Private Limited, subject to name approval by the Registrar of Companies. This strategic initiative aims to explore opportunities in sustainable technologies and expand the company's long-term growth strategy.

The proposed subsidiary will undertake business activities relating to the manufacturing, processing, trading, and marketing of green and renewable energy products. Key focus areas include solar energy, wind energy, bio-energy, and energy-efficient products. Additionally, the entity will engage in the recycling of all types of plastics and other allied or incidental activities.

L.K. Mehta Polymers Limited will subscribe to the entire initial equity share capital of the new entity. This involves the subscription to 10,000 equity shares of ₹10 each, aggregating to a total of ₹1,00,000. The investment is subject to the completion of necessary statutory and regulatory formalities.

The transaction falls under the category of a related party transaction as it involves an investment in a wholly owned subsidiary. However, the company noted that the transaction is exempt from certain related party transaction provisions as applicable. The incorporation is expected to strengthen the company's business opportunities and support its expansion into the sustainability sector.

Details of the Wholly Owned Subsidiary

Particulars	Description
Name of entity incorporated	L.K. Mehta Green Private Limited (subject to approval of name by ROC)
Nature of business	Green & renewable energy solutions, sustainable technologies, recycling and allied activities
Paid-up capital subscribed	₹1,00,000 (10,000 Equity Shares of ₹10 each)
Percentage of shareholding	100% Wholly Owned Subsidiary
Purpose of incorporation	Business diversification and expansion into renewable energy and sustainability sector

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
0.0%	0.0%	-4.46%	-2.78%	-16.94%	-39.49%

L.K. Mehta Polymers reported financial results for the year ended March 31, 2026, showing a rise in total revenue to ₹2953.59 lakh from ₹1915.84 lakh in the previous year. The Board of Directors approved the audited financial results for the half-year and full-year ended March 31, 2026, during a meeting held on May 29, 2026. The statutory auditors, DCJ & Associates, issued an unmodified opinion on the standalone financial statements.

The company recorded a profit before tax of ₹90.04 lakh for FY26, compared to ₹80.03 lakh in the prior year. Net profit for the period stood at ₹62.64 lakh, an increase from ₹60.43 lakh in FY25. Basic earnings per share (EPS) were reported at ₹1.63 for the full year, down from ₹2.08 in the previous year. The board also approved the appointment of internal auditors for the financial year 2026-27.

Financial Performance

Revenue from operations for the full year ended March 31, 2026, reached ₹2919.32 lakh, up from ₹1896.58 lakh in the same period last year. Total expenses increased to ₹2863.55 lakh from ₹1835.80 lakh, driven by higher costs of material consumed and purchases of trading goods. Financial costs for the year amounted to ₹65.81 lakh, while depreciation and amortization stood at ₹13.89 lakh.

Metric	FY26 (₹ in Lakhs)	FY25 (₹ in Lakhs)
Total Revenue	2953.59	1915.84
Total Expenses	2863.55	1835.80
Profit Before Tax	90.04	80.03
Net Profit	62.64	60.43
Basic EPS	1.63	2.08

IPO Fund Utilization

The company confirmed that it raised ₹7,38,40,000 through its Initial Public Offer (IPO). As of March 31, 2026, ₹7,28,40,000 has been utilized for the purposes stated in the offer document. The unutilized balance of ₹10,00,000 is parked in a fixed deposit with HDFC Bank. The auditors certified that there was no deviation or variation in the utilization of the funds raised.