Mihika Industries reported a significant contraction in business activity for the quarter ended June 30, 2026, with revenue from operations falling 72.7% year-on-year to ₹45.27 lakh. The agriculture product trader’s net profit for the period was ₹1.06 lakh, a decline from the ₹1.42 lakh recorded in Q1FY26. The steep drop in top-line figures reflects lower stock-in-trade purchases, which stood at nil for the current quarter compared to ₹380.08 lakh in the same period last year.

The unaudited financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors at their meeting held on July 23, 2026. The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013, and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors S K Bhavsar & Co conducted a limited review report pursuant to Standard on Review Engagement (SRE) 2410 and found no material misstatement in the disclosed information.

Financial Performance Overview

The company’s total income decreased to ₹59.51 lakh from ₹181.51 lakh in Q1FY25, driven primarily by the collapse in operational revenue. Other income also saw a marginal decline to ₹14.24 lakh from ₹15.40 lakh in the preceding year. Total expenses were contained at ₹58.08 lakh, down significantly from ₹179.59 lakh in the previous year, largely due to the absence of stock purchases and changes in inventory valuation adjustments that previously impacted costs.

Basic earnings per share remained flat at ₹0.01 for the quarter, unchanged from both the preceding quarter and the same period last year. The company incurred a current tax expense of ₹0.37 lakh, compared to ₹0.50 lakh in Q1FY26. There were no exceptional or extraordinary items reported during the period.

What the Numbers Show

The divergence between the drastic fall in revenue and the relatively stable net profit highlights the variable nature of Mihika Industries’ trading model. With purchases of stock-in-trade dropping to zero from ₹380.08 lakh in Q1FY26, the company appears to have operated with minimal inventory turnover in the current quarter. This suggests a pause in active trading cycles rather than a complete cessation of business, as evidenced by the continued generation of other income and minimal employee benefit expenses of ₹1.55 lakh. The lack of cost of materials consumed and depreciation expenses indicates that fixed overheads remain low, allowing the company to maintain profitability despite negligible operational volume.

Mihika Industries approved raising funds up to ₹90 crore through a rights issue and increased its authorized share capital tenfold to support the expansion. The board meeting held on July 17, 2026, sanctioned the issuance of equity shares on a rights basis to eligible shareholders, subject to regulatory approvals. The company also altered its capital clause to increase authorized capital from ₹10 crore to ₹100 crore.

The board approved the raising of funds through the issuance and allotment of equity shares with a face value of ₹10 each. The aggregate amount shall not exceed ₹90 crore. The record date for determining eligibility will be notified later. The Rights Issue Committee was authorized to finalize terms and conditions.

company name appointed Ms. Pooja Sarkar, Ms. Shruti, and Mr. Sudhanshu Shekhar as Additional Non-Executive Independent Directors effective July 17, 2026, for five years. These appointments are subject to shareholder approval at the ensuing Annual General Meeting. Simultaneously, Mr. Saurabh and Ms. Reema Magotra resigned from their positions as Additional Non-Executive Independent Directors effective July 17, 2026, citing pre-occupancy.

The board reconstituted key committees following the changes. Mr. Sudhanshu Shekhar was appointed Chairperson of the Audit Committee, Nomination and Remuneration Committee, and Stakeholders Relationship Committee.

Board Committee Composition

The board approved the Director's Report for the financial year 2025-26 and convened the 43rd Annual General Meeting for September 1, 2026, at 3:00 PM IST via video conferencing.