Lakhotia Polyesters (India) Limited announced that its statutory auditor, M/s. Sharp Aarth & Co LLP, resigned effective July 22, 2026, due to pre-occupation with other professional commitments and administrative reasons. The firm cited increased professional commitments and resource constraints as key factors behind its inability to allocate adequate time and resources to discharge its responsibilities effectively. The resignation was communicated via a letter dated July 22, 2026, and has been intimated to BSE Limited pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

M/s. Sharp Aarth & Co LLP was appointed as the statutory auditor on April 1, 2022, with a term scheduled to expire on March 31, 2027. Prior to the resignation, the firm had submitted a limited review report dated July 17, 2026. The auditor confirmed there were no material reasons for the resignation other than those stated and that no concerns were raised prior to stepping down. The firm will comply with the applicable provisions of the Companies Act, 2013, including the filing of Form ADT-3 with the Registrar of Companies.

The disclosure confirms that the auditor did not face any management limitations regarding the inability to obtain sufficient appropriate audit evidence. Furthermore, the lack of information was not prevalent in previous financial statements, and no alternative procedures under SA 705 were required. The Board of Directors has been requested to file the necessary forms and intimations with the Registrar of Companies and other statutory authorities.

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Lakhotia Polyesters (India) Limited reported a profit after tax of ₹4.54 crore for the quarter ended June 30, 2026, a significant increase from ₹0.98 crore in the same period last year. The company's revenue from operations surged to ₹32.17 crore, up from ₹10.26 crore in Q1FY26, driven by its core business of manufacturing and trading Metallic Yarn & Textile Fabrics. Total income for the quarter stood at ₹41.70 crore, compared to ₹16.96 crore in the previous year.

The Board of Directors approved the unaudited standalone financial results at its meeting held on July 17, 2026. The results were reviewed by the Statutory Auditors, Sharp Aarth & Co. LLP, in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company operates a single reportable segment under Ind AS 108, focusing on Metallic Yarn & Textile Fabrics.

Total expenses for the quarter rose to ₹35.57 crore, up from ₹3.57 crore in the corresponding period of the previous year, primarily due to higher costs of material consumed, which stood at ₹32.39 crore. Finance costs for the quarter were ₹1.22 crore, while depreciation and amortization expenses amounted to ₹0.26 crore. The profit before tax for the period was ₹6.13 crore, compared to ₹13.39 crore in Q1FY26.

The company reported a basic and diluted earnings per share (EPS) of ₹0.43 for Q1FY27, up from ₹0.93 in the same period last year. For the financial year ended March 31, 2026, the company reported a profit after tax of ₹23.75 crore on total income of ₹197.61 crore. The figures for the quarter ended March 31, 2026, are balancing figures between audited full-year results and published reviewed year-to-date figures up to the third quarter.

Financial Highlights for Q1FY27