National Standard (India) Limited has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, to the Bombay Stock Exchange. The filing, made under Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, discloses that the company’s operations are entirely dependent on its holding company, Lodha Developers Limited, with 100% of its turnover arising from related-party transactions.

The company reported a total turnover of ₹2,041.81 lakhs for FY26, with a net worth of ₹28,199.54 lakhs. Corporate Social Responsibility (CSR) provisions under Section 135 of the Companies Act, 2013 were applicable to the entity during the period. The report forms an integral part of the company’s 63rd Annual Report.

Operational Structure

National Standard operates as a trading entity focused on the sale of building materials, contributing 100% to its turnover in the construction sector. The company maintains a single office location in Mumbai and has no plants or international operations.

A defining characteristic of the company’s structure is its lack of direct employment. Key Managerial Personnel are on deputation from Lodha Developers Limited. Consequently, disclosures regarding employee welfare, training, safety incidents, and grievance mechanisms for workers are marked as not applicable. The Board of Directors comprises six members, including one woman director, representing 16.67% female representation.

Financial and Governance Highlights

The filing provides specific metrics on financial conduct and governance practices for FY26 compared to the previous year.

The company recorded a reduction in days of accounts payable from 9 days in FY25 to 4 days in FY26. There were no fines, penalties, or disciplinary actions taken against directors or key managerial personnel for bribery or corruption. One shareholder complaint was filed and resolved during FY26, with no pending cases at year-end.

What the Numbers Show

The most significant operational shift disclosed in the report is the complete concentration of revenue within the group structure. While only 40% of sales were to related parties in FY25, this figure rose to 100% in FY26. This indicates that National Standard now functions exclusively as an internal trading arm for its holding company, eliminating external customer exposure. This structural dependency is reinforced by the absence of independent employees and the reliance on deputed staff from Lodha Developers Limited for all management functions.

National Standard (India) Limited reported a net profit of ₹96.59 crore for the financial year ended March 31, 2026 (FY26), a decline from the ₹131.99 crore recorded in FY25. The drop in profitability was driven by a contraction in revenue from operations, which fell to ₹2,041.81 lakh in FY26 compared to ₹2,232.97 lakh in the previous year. Despite the lower operational income, total income remained relatively stable at ₹3,995.77 lakh, supported by other income of ₹1,953.96 lakh. The company is now seeking shareholder approval for significant governance changes and related party transactions totaling ₹75 crore at its 63rd Annual General Meeting (AGM) scheduled for August 28, 2026.

The Board’s Report highlights that the company’s real estate project was completed in 2018, and it currently has no active development projects. Instead, operations focus on trading building materials and earning interest on surplus funds deployed within the group. The proposed related party transactions with Cowtown Infotech Services Limited, a fellow subsidiary, include ₹25 crore for the sale of building materials and ₹50 crore for loans and advances. These transactions represent 367% of the company’s annual consolidated turnover for the preceding financial year, underscoring a strategic dependency on group entities for liquidity and revenue generation.

Financial Performance Overview

The company’s financial structure remains robust with no borrowings, resulting in a debt-free balance sheet. Key financial metrics for FY26 reflect a shift in margin dynamics due to the mix of operating and non-operating income.

Operating profit margin decreased to 0.33% from 0.45% in FY25, while net profit margin stood at 0.47%, down from 0.59%. The current ratio improved significantly to 96.91 from 56.09, driven by a reduction in current liabilities. Trade receivables turnover ratio declined by 30.69% to 7.81, indicating slower collection cycles relative to revenue.

Governance and Board Changes

The AGM will also address critical board appointments and auditor changes. Shareholders will vote on the appointment of M/s. Walker Chandiok & Co. LLP as Statutory Auditors for a five-year term, replacing M/s MSKA & Associates LLP which completes its tenure. The proposed remuneration for the new auditors is ₹5 lakh per annum plus out-of-pocket expenses.

Board composition updates include:

• Vikas Jain: Appointment as Non-Executive Non-Independent Director. He brings over 19 years of experience in corporate finance and currently serves as Co-Head Finance at Lodha Group.
• Sanjay Bahad: Appointment as Independent Director for a first term ending July 5, 2031. He holds a PMP certification and has over three decades of experience in civil construction project management.
• Ritika Bhalla: Re-appointment as Independent Director for a second term ending July 11, 2032.
• Kurian Arimpur: Re-appointment as Non-Executive Non-Independent Director upon retirement by rotation.

What the Numbers Show

The financial data reveals a company transitioning from active real estate development to a holding-style entity focused on asset monetization and intra-group financing. With no employees and key managerial personnel deputed from the holding company, Lodha Developers Limited, operational costs are minimal. The high proportion of other income relative to revenue suggests that the core value driver is the deployment of surplus cash within the Lodha ecosystem rather than organic trading growth. The proposed ₹75 crore in related party transactions further cements this interdependence, allowing National Standard to earn steady interest income while supporting group procurement needs. This structure minimizes operational risk but concentrates exposure on the creditworthiness and performance of the holding company.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE166R01015/adb74b03-4d6d-4bb1-b6c1-0f00e4fd7a5d.pdf