Mafatlal Industries has appointed Deloitte Haskins & Sells Chartered Accountants LLP as its statutory auditors for a term of five years. The Board of Directors approved the appointment on August 7, 2026, following a recommendation from the Audit Committee. The new audit firm will take charge from the conclusion of the 113th Annual General Meeting (AGM), scheduled to be held in FY2027-28, and will serve until the conclusion of the 118th AGM in FY2031-32. This appointment is subject to approval by the company’s members at the upcoming AGM.

The appointment marks a transition in the company’s external audit function. Price Waterhouse Chartered Accountants LLP, which served as the statutory auditor for the preceding two consecutive terms totaling five years, will continue in the role until the conclusion of the 113th AGM. This ensures continuity in financial oversight during the transition period. The move aligns with regulatory requirements mandating rotation of statutory auditors after a specified tenure.

Appointment Details

The Board’s decision was communicated to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure also referenced SEBI Master Circular No. SEBI/HO49/14/14(7)2025-CFD-PoD2/I/3762/2026 dated January 30, 2026. Key details of the appointment are outlined below:

Deloitte Haskins & Sells Chartered Accountants LLP was constituted in 1997 and converted into a Limited Liability Partnership on June 2, 2012. The firm is registered with the Institute of Chartered Accountants of India (ICAI) and operates as part of the Deloitte Haskins & Sells & Affiliates network. Its registered office is located at the 19th Floor, Shapath-V, beside Crowne Plaza Hotel, Karnavati Club, S.G. Highway, Ahmedabad.

Regulatory Compliance and Transition

The appointment process adhered to strict regulatory guidelines. The Audit Committee reviewed and recommended the selection before it was presented to the Board for final approval. Amish Kumar Shah, Company Secretary of Mafatlal Industries Limited, signed the disclosure document dated August 7, 2026. There were no disclosed relationships between the directors and the appointed firm, ensuring independence in the audit function.

Price Waterhouse Chartered Accountants LLP (ICAI Firm Registration No.: 012754N/N500016) will complete its tenure upon the conclusion of the 113th AGM. This marks the end of its second consecutive five-year term. The seamless handover is designed to maintain rigorous financial reporting standards without disruption. Shareholders will vote on the appointment during the 113th AGM, making their consent a critical final step in formalizing the engagement.

Mafatlal Industries Limited reported a standalone net profit of ₹14.62 crore for the first quarter ended June 30, 2026, marking a 68% decline from ₹45.94 crore in Q1FY25. The company's revenue from operations dropped 24% year-on-year to ₹942.47 crore, reflecting weaker demand in its core consumer durables business. Adding to the pressure, EBITDA fell sharply by 57% year-on-year to ₹18.60 crore from ₹43.80 crore, with the EBITDA margin contracting to 1.98% from 3.54% in the same period last year. This performance signals a challenging start to FY26 for the diversified conglomerate, with profitability pressures evident across key segments.

The Board of Directors approved the unaudited financial results on August 7, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory Auditors Price Waterhouse Chartered Accountants LLP issued an unmodified limited review report on both standalone and consolidated financial statements. The results were prepared in accordance with Ind AS 34 and other generally accepted accounting principles in India.

Key Financial Highlights

The table below summarises the key standalone financial metrics for the quarter:

Segment Performance

The decline in top-line growth was primarily driven by the Consumer Durables and Others segment, which saw revenue plummet 42% year-on-year to ₹494.58 crore from ₹849.45 crore in Q1FY25. Despite this, the Textile and Related Products segment showed resilience, growing 6% to ₹405.94 crore. The Digital Infrastructure segment emerged as a bright spot, with revenue surging 543% to ₹41.95 crore from ₹6.52 crore in the prior year period.

What the Numbers Show

A critical observation from the filing is the divergence between operational profitability and net profit. While total income declined due to lower revenues, the company recorded a net impairment gain of ₹8.00 crore on financial assets, compared to a loss of ₹4.61 crore in Q1FY25. This reversal contributed positively to the bottom line. However, other expenses rose significantly to ₹91.69 crore from ₹60.48 crore, indicating increased operational costs that offset some of the gains from asset revaluation. The effective tax rate also shifted, with a deferred tax charge of ₹4.97 crore in Q1FY26 versus a credit of ₹3.68 crore in the same period last year.

Consolidated results mirrored the standalone figures, with group net profit standing at ₹14.68 crore against ₹45.56 crore in Q1FY25. The consolidated revenue was marginally higher at ₹942.65 crore. Earnings per share (basic) stood at ₹2.03, down sharply from ₹6.39 in the previous year's corresponding quarter. The company's paid-up equity capital remained unchanged at ₹14.43 crore.