Mega Flex Plastics Limited has announced its audited standalone financial results for the financial year ended March 31, 2026. The Board of Directors approved the financial statements during a meeting held on May 22, 2026. The company reported a significant improvement in profitability and revenue for the fiscal year.

Financial Performance

For the year ended March 31, 2026, the company recorded a net profit of ₹727.27 lakh, a sharp increase from ₹342.58 lakh in the previous year. This growth was driven by a 29.4% rise in revenue from operations, which reached ₹7,807.56 lakh compared to ₹6,030.75 lakh in FY25. Total revenue for the period stood at ₹8,063.90 lakh.

The company's earnings per share (EPS) on a basic basis improved to ₹6.00 for FY26, up from ₹2.82 in the previous year. Total expenses for the year increased to ₹7,092.81 lakh from ₹5,793.36 lakh, primarily due to higher material costs and operational expansion.

Balance Sheet Highlights

The company's balance sheet reflected a stronger financial position with total assets growing to ₹7,322.50 lakh as of March 31, 2026, up from ₹5,959.78 lakh a year earlier. Shareholders' funds increased to ₹6,247.46 lakh, driven by an accumulation of reserves and surplus which rose to ₹5,034.35 lakh.

Current investments saw a substantial rise, reaching ₹3,309.33 lakh compared to ₹1,408.11 lakh in the prior year. However, trade receivables decreased to ₹41.98 lakh from ₹133.27 lakh. The company maintained a healthy cash and cash equivalent balance of ₹498.49 lakh at the end of the fiscal year.

Key Financial Metrics

The following table summarizes the key financial figures for the financial year ended March 31, 2026, compared to the previous year:

Board Decisions and Appointments

Alongside the financial results, the board approved the re-appointment of M/s. Kanchan Jalan as the Secretarial Auditor and M/s. Vikash Chamaria & Co as the Internal Auditor for the financial year 2026-2027. The statutory auditors issued an unmodified opinion on the standalone financial results.

mega flex plastics has disclosed a material litigation update regarding a GST classification dispute following a judgment by the Hon'ble Division Bench of the Calcutta High Court on May 20, 2026. The case, titled Mega Flex Plastics Limited & Anr. v. Union of India & Ors., addresses the classification of polypropylene leno bags manufactured by the company.

Background of the Dispute

The dispute stems from an order dated October 25, 2018, by the West Bengal Appellate Authority for Advance Ruling. The authority classified PP Leno Bags under Heading 63053300, attracting a GST rate of 5% or 12%, rather than Chapter Heading 39232990, which attracts 18%. Consequently, the company made a payment under protest of ₹6,57,38,093 for the differential GST demand for the quarter ended December 31, 2024.

Court Judgment

The Division Bench of the Calcutta High Court has ruled that the polypropylene leno bags manufactured by the company fall under HSN 3923 2900. Consequently, the goods are taxable at the rate of 18%. The court's decision settles the classification dispute in favor of the tax authorities, overturning the company's previous classification claims.

Financial Impact and Future Action

The company stated that the disputed amount had already been paid under protest in FY 2018–2019. As Mega Flex Plastics intends to file a Special Leave Petition (SLP) before the Supreme Court of India against the judgment, it reported that there is presently no further financial impact resulting from the order.