Mirza International reported a standalone net loss of ₹451.44 lakh for the quarter ended June 30, 2026, widening from a loss of ₹1,169.05 lakh in the preceding quarter but contrasting sharply with a net profit of ₹1,766.76 lakh in the same period last year. Standalone revenue from operations fell 12.6% year-on-year to ₹12,356.53 lakh, reflecting a slowdown in both domestic and export footwear sales. The Board of Directors approved the unaudited financial results on August 6, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company’s statutory auditors, Saxena Roongta and Associates, conducted a limited review and expressed an unmodified opinion on the results. The financial statements were prepared in accordance with Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013. Notably, the adoption of Ind AS 116 on leases reduced rent expenses by ₹9.86 lakh but increased depreciation and finance costs by ₹9.54 lakh and ₹8.96 lakh respectively, resulting in a net decrease in loss before tax of ₹8.64 lakh for the quarter.

Financial Performance Highlights

Standalone revenue from operations declined to ₹12,356.53 lakh from ₹14,142.04 lakh in Q1FY25. Total expenses rose to ₹12,893.53 lakh from ₹13,878.48 lakh in the prior year, primarily due to a significant drop in other expenses which fell from ₹2,918.14 lakh to ₹2,225.58 lakh. However, this was offset by an increase in employee benefit expenses, which rose to ₹1,955.00 lakh from ₹1,798.42 lakh. Finance costs decreased significantly to ₹78.00 lakh from ₹208.05 lakh in the corresponding period.

On a consolidated basis, the group reported a net loss of ₹407.04 lakh, compared to a profit of ₹1,780.84 lakh in Q1FY25. Consolidated revenue from operations stood at ₹12,839.85 lakh, down from ₹14,210.55 lakh in the previous year. The earnings per share (basic) for the standalone entity were negative ₹0.33, compared to positive ₹1.28 in the corresponding quarter of FY25.

Segment-Wise Analysis

The footwear segment, which includes domestic and export sales, generated standalone revenue of ₹10,245.47 lakh, down from ₹12,048.48 lakh in Q1FY25. Despite the revenue decline, the segment turned profitable with a result of ₹54.74 lakh, improving from a loss of ₹388.70 lakh in the previous quarter and maintaining profitability against a profit of ₹702.20 lakh in Q1FY25. The tannery segment continued to face challenges, reporting a loss of ₹277.50 lakh on revenue of ₹3,141.32 lakh, compared to a smaller loss of ₹41.86 lakh on higher revenue of ₹4,597.38 lakh in the prior year.

Inter-segment revenue amounted to ₹1,030.26 lakh in Q1FY26, up from ₹530.36 lakh in the previous quarter but down from ₹2,503.82 lakh in Q1FY25. The unallocated and exceptional items contributed ₹48.56 lakh to the total income, a sharp decline from ₹1,873.20 lakh in the corresponding period last year, indicating the absence of significant one-time gains that had boosted profits previously.

What the Numbers Show

The divergence between the standalone and consolidated performance highlights the impact of foreign subsidiaries. While the Indian operations struggled with margin pressure in the tannery segment, the consolidated results were influenced by Mirza (UK) Limited, which reported total assets of ₹14,868.16 lakh and revenue of ₹1,167.96 lakh for the quarter. The absence of the large exceptional gain recorded in Q1FY25 (₹1,861.45 lakh) is the primary driver behind the shift from profit to loss, rather than operational deterioration alone. Operational costs, particularly employee benefits, have risen, suggesting potential wage inflation or headcount increases that need monitoring in subsequent quarters.

Mirza International company name shareholders approved the reappointment of Tauseef Ahmad Mirza, Faraz Mirza, Tasneef Ahmad Mirza, and Shahid Ahmad Mirza, alongside the new appointment of Aqeel Ahmad Khan as Whole-time Director. The resolutions were passed at the company’s 47th Annual General Meeting (AGM) held on August 1, 2026. This outcome ensures leadership continuity for the leather goods manufacturer but highlights a significant governance divergence, as public institutional investors voted overwhelmingly against the reappointment of the existing Mirza family directors despite unanimous promoter support.

The appointments were recommended by the Remuneration and Compensation Committee and approved by the Board of Directors on May 29, 2026. The disclosures were made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and referenced SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Additionally, the filings confirmed compliance with BSE circular no. LIST/COMP/14/2018-19 and NSE circular no. NSE/CML/2018/24, dated June 20, 2018, stating that none of the appointees are debarred from holding office.

Director Appointments and Tenures

The AGM approved specific effective dates and three-year tenures for each role, formalizing the management structure:

Director Profiles and Relationships

Tauseef Ahmad Mirza, Tasneef Ahmad Mirza, and Shahid Ahmad Mirza are brothers. Faraz Mirza is the son of Shahid Ahmad Mirza.

Shahid Ahmad Mirza brings approximately four decades of experience in leather goods technology and oversees the Shoe Division. His brother, Tasneef Ahmad Mirza, holds a diploma in Leather Technology from Leicester University and manages the Tannery Division with over two decades of experience. Tauseef Ahmad Mirza, who holds a Diploma in Shoe Technology from the UK, has more than three decades of experience in the leather industry and focuses on expanding into new markets through brand partnerships.

Faraz Mirza, who holds a degree from the United States, oversees overseas marketing, production, and day-to-day operations. He is also responsible for the e-commerce and domestic retail operations of the men’s footwear brand, Thomas Crick.

Aqeel Ahmad Khan, the newly appointed Whole-time Director, brings 17 years of experience in industrial relations. He specializes in coordinating with government institutions, including the Pollution Control Board, District Industries Centre (DIC), Fire Department, and local administration authorities.

Voting Dynamics

The voting results revealed a stark contrast between shareholder categories. The promoter group, holding 100,876,282 shares, voted 100% in favor of all resolutions. In contrast, public institutional investors, holding 194,712 shares, voted against the reappointment of Faraz Mirza, Tauseef Ahmad Mirza, Tasneef Ahmad Mirza, and Shahid Ahmad Mirza. Public non-institutional investors largely supported the resolutions, with approval rates above 99%. Aqeel Ahmad Khan’s appointment received broad support, with 99.60% institutional backing.

What the Numbers Show

The unanimous promoter backing ensures governance stability for Mirza International, but the near-total opposition from institutional investors to the reappointment of existing directors suggests concerns about leadership continuity or performance. The strong support for Aqeel Ahmad Khan’s new appointment may indicate investor willingness to embrace fresh leadership. The high participation rate of 73.52% of outstanding shares polled underscores significant shareholder engagement in these governance decisions.