Neopolitan Pizza and Foods Limited reported a sharp contraction in profitability for the financial year ended March 31, 2026, driven by a significant decline in top-line revenue.

The company’s net profit fell 49.8% year-on-year to ₹20.39 lakh, down from ₹40.64 lakh in FY25. This decline followed a 42.2% drop in total income, which stood at ₹2,963.54 lakh compared to ₹5,126.10 lakh in the previous year.

Financial Performance

Revenue from operations was recorded at ₹2,952.68 lakh for FY26. The profit before depreciation and tax (PBDT) declined to ₹59.32 lakh from ₹98.51 lakh in FY25. After accounting for depreciation and amortisation of ₹25.74 lakh and tax expenses, the company reported a profit before tax of ₹33.58 lakh.

What the Numbers Show

The divergence between the decline in revenue and the sharper drop in profitability highlights margin pressure during the period. While total income contracted by over 42%, the net profit nearly halved, indicating that fixed costs or lower-margin trading activities weighed more heavily on the bottom line relative to the top-line reduction. Additionally, the company maintained a strong liquidity position with a current ratio of 10.89 and a negligible debt-equity ratio of 0.01.

Operational Updates

The company continued its expansion in the quick service restaurant (QSR) segment through both company-owned outlets and franchise models. Against the proposed 16 new QSR outlets under its IPO objects, seven were operational, four were under construction, and the remainder were yet to be established as of the reporting date.

Management attributed a decline in royalty income from franchise operations in the fourth quarter to adverse business conditions and global LPG supply disruptions. The statutory auditors noted a deviation in the utilisation of IPO proceeds, primarily relating to ₹408.50 lakh used towards working capital requirements exceeding the originally specified amount.

Corporate Actions

The Board of Directors did not recommend any dividend for FY26, citing long-term requirements and prospects. No amount was transferred to the general reserve. The paid-up equity share capital remained unchanged at ₹17 crore, comprising 1.7 crore equity shares of ₹10 each.

Ms. Arti Mukund Purohit, Executive Director, retires by rotation at the upcoming 15th Annual General Meeting scheduled for September 30, 2026, and offers herself for re-appointment. The meeting will be held via video conferencing.

Promoter Mukund Purohit acquired 5600 equity shares of Neopolitan Pizza and Foods Limited on September 1, 2026. The transaction was executed through the open market.

The acquisition was disclosed under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing was submitted to the BSE Limited and the company on September 2, 2026.

Shareholding Changes

Purohit’s stake in the company increased marginally following the purchase. The details of the holding are outlined below.

The total voting capital of Neopolitan Pizza and Foods Limited remained unchanged at 17,00,00,000 equity shares before and after the transaction. There were no encumbrances or pledges reported on the acquired shares.