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 reported a net profit of ₹1.06 lakh for the quarter ended June 30, 2026 (Q1FY26), marking a recovery from the ₹1.42 lakh loss posted in the same period last year. However, the company’s top-line performance weakened considerably, with revenue from operations falling 72.8% year-on-year to ₹45.27 lakh from ₹166.11 lakh. This decline signals a substantial contraction in trading volumes for the agriculture product trader, though profitability was preserved through favorable inventory adjustments and controlled operating expenses.

The Board of Directors approved the unaudited financial results during a meeting held on July 23, 2026, at its corporate office in Ahmedabad. The results were prepared in accordance with Indian Accounting Standards (Ind AS) and reviewed by the Audit Committee prior to board approval. Pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company disclosed the outcome to BSE Limited.

Financial Performance Breakdown

The significant drop in revenue was primarily driven by a steep reduction in purchases of stock-in-trade. In Q1FY26, purchases amounted to nil, compared to ₹50 lakh in the preceding quarter and ₹380.08 lakh in Q1FY25. This indicates a major slowdown in new inventory acquisition during the current period.

Total expenses stood at ₹58.08 lakh, down from ₹59.60 lakh in Q4FY25 and significantly lower than ₹179.59 lakh in Q1FY25. The expense reduction was largely due to the absence of stock purchases and changes in inventories. While purchases were nil, the company recorded a negative change in inventories of ₹50.68 lakh, which reduced total expenses. In contrast, Q1FY25 saw a positive change in inventories of ₹208.23 lakh, contributing to higher costs.

Other income remained stable at ₹14.24 lakh, slightly up from ₹13.84 lakh in the previous quarter. Employee benefit expenses decreased to ₹1.55 lakh from ₹3.86 lakh in Q4FY25, while other expenses rose marginally to ₹5.85 lakh from ₹2.82 lakh.

What the Numbers Show

The divergence between revenue decline and profit retention highlights the impact of inventory management on Mihika Industries’ bottom line. With no new stock purchases in Q1FY26, the company’s revenue recognized likely stemmed from sales of existing inventory or deferred recognitions, rather than active trading cycles. The absence of cost of materials consumed and depreciation suggests minimal operational overheads beyond employee benefits and general expenses. This lean structure allowed the company to maintain profitability despite a 73% drop in operating revenue, indicating that fixed costs are low relative to variable trading activities.

Auditor Review and Compliance

S K Bhavsar & Co., the statutory auditors, conducted a limited review of the financial results in accordance with Standard on Review Engagement (SRE) 2410. The audit firm issued a clean report, stating that nothing came to their attention to suggest the financial statements contained material misstatements or failed to comply with Ind AS and SEBI regulations. The review provided moderate assurance that the interim financial information was free from material errors.

The company operates exclusively in the trading of agriculture products and has no reportable segments under Ind AS. Paid-up equity share capital remains unchanged at ₹1,000 lakh, with a face value of ₹10 per share. Earnings per share (basic and diluted) stood at ₹0.01 for the quarter.