Nagarjuna Agri Tech Limited reported a consolidated net loss of ₹3.97 lakh for the quarter ended June 30, 2026, marking a reversal from the net profit of ₹2.17 lakh recorded in the corresponding period of FY26. The Board of Directors approved the unaudited financial results on August 11, 2026. While revenue from operations expanded significantly, driven by increased sales activity, the growth was entirely offset by a disproportionate rise in operational expenses and a sharp increase in finance costs, eroding profitability.

The company’s standalone operations also turned loss-making, posting a net loss of ₹95.16 lakh against a profit of ₹2.17 lakh in Q1FY26. Revenue from operations jumped to ₹20.14 lakh (standalone) and ₹32.18 lakh (consolidated) from ₹1.53 lakh in both segments during the previous year. However, total expenses rose to ₹21.19 lakh (standalone) and ₹32.09 lakh (consolidated), primarily due to increased purchases of stock in trade and cost of materials consumed.

Financial Performance Highlights

The consolidated basic earnings per share (EPS) stood at (0.01), down from 0.02 in the previous year. Standalone EPS declined to (0.31) from 0.02. The statutory auditors, Agarwal Khetan & Co., issued an unmodified review conclusion on the financial statements pursuant to Regulation 33 read with Regulation 63 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were prepared in accordance with Ind AS 34, Interim Financial Reporting.

Operational Drivers and Cost Structure

The primary driver of the margin compression was a substantial increase in finance costs. In the consolidated entity, finance costs rose sharply to ₹164.81 lakh from negligible levels in the prior year, suggesting increased leverage or new borrowing initiatives that weighed heavily on the bottom line. In the standalone segment, finance costs were ₹26.74 lakh compared to zero in the same period last year. Additionally, purchase of stock in trade surged to ₹2,102.00 lakh (consolidated) and ₹1,267.54 lakh (standalone), reflecting higher inventory accumulation to support the revenue growth.

What the Numbers Show

The significant divergence between revenue growth and profitability indicates severe margin compression in the current quarter. While revenue expanded by over 20 times year-on-year, total expenses grew at a similar magnitude, leaving minimal operating buffer. The surge in finance costs, particularly in the consolidated results, highlights a dependency on debt financing to fund operations or inventory buildup. This structure suggests that while top-line momentum is strong, the current cost base is unsustainable without corresponding improvements in operational efficiency or reduction in interest burdens. Management stated they are actively engaged in discussions regarding the future prospects and strategic direction of the company.

Nagarjuna Agri-Tech Limited has accepted the resignation of Sumit Sengupta as a member of its Board of Directors, effective July 31, 2026. The company notified the BSE on August 1, 2026, stating that Sengupta stepped down due to preoccupation with other professional assignments. This leadership change marks an update to the company’s governance structure without indicating any operational disruption or material conflict.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. Deepika Bhutra, Company Secretary and Compliance Officer, signed the submission to the exchange. The filing included Annexure-A detailing the cessation event and Annexure-B containing the original resignation letter dated July 31, 2026.

Sengupta, identified by DIN 09184493, confirmed in his resignation letter that there were no other material reasons for his departure aside from his engagement in other assignments. He thanked the Board and shareholders for the opportunity to serve during his tenure. His resignation became effective at the closure of business hours on July 31, 2026.

Resignation Details

The company’s corporate office remains located at Chatterjee International Centre in Kolkata, while its registered office is situated in Madhapur, Hyderabad. No immediate replacement for Sengupta was announced in this disclosure.