Nirman Agri Genetics Limited reported a 30.4% decline in net profit to ₹1,760.53 lakh for the financial year ended March 31, 2026, driven by a 16.9% drop in revenue from operations. The company’s revenue fell to ₹19,657.32 lakh in FY26 from ₹23,670.20 lakh in the previous year, while total expenses decreased to ₹17,842.03 lakh from ₹21,062.76 lakh. The board approved the audited standalone financial results for the year and half-year ended March 31, 2026, at a meeting held on May 30, 2026.

The statutory auditors, M/s Devendra C. Belan & Associates, issued an audit report with an unmodified opinion on the financial results. The company operates a single reportable business segment in Agricultural Seeds and is listed on the SME exchange. The financial statements are prepared in compliance with Accounting Standards prescribed under Section 133 of the Companies Act, 2013, and the company is exempt from adopting IND-AS.

Financial Performance

Profit before tax for the year ended March 31, 2026, stood at ₹1,815.29 lakh, a decrease from ₹2,607.44 lakh in the prior year. The basic earnings per share (EPS) declined to ₹21.98 from ₹31.57 in the previous year. For the half year ended March 31, 2026, the company reported a net profit of ₹302.64 lakh on revenue of ₹5,034.44 lakh.

The statement of assets and liabilities as of March 31, 2026, showed total assets of ₹12,935.34 lakh, compared to ₹11,307.67 lakh in the previous year. Shareholders' funds increased to ₹12,754.68 lakh from ₹10,994.15 lakh, driven by an increase in reserves and surplus to ₹11,953.71 lakh from ₹10,193.18 lakh.

Key Financial Metrics

Cash Flow Analysis

Net cash generated from operating activities was negative at ₹(2,449.66) lakh for the year, compared to ₹(3,136.80) lakh in the previous year. Cash flows from investing activities were positive at ₹11.75 lakh, while financing activities resulted in a net outflow of ₹54.76 lakh. Cash and cash equivalents at the end of the year stood at ₹94.51 lakh, a significant decrease from ₹2,587.17 lakh at the beginning of the year.

The Securities and Exchange Board of India (SEBI) has taken stringent action against Nirman Agri Genetics , an SME-listed company, by prohibiting it from accessing the securities market. This decision comes in the wake of allegations regarding the misuse of funds raised through the company's Initial Public Offering (IPO).

IPO Details and Fund Misuse Allegations

Nirman Agri Genetics raised Rs 20.30 crore through its IPO in March 2023, with First Overseas Capital Ltd. serving as the lead manager. However, SEBI's investigation has uncovered troubling findings:

Specific Allegations

SEBI's investigation revealed several concerning transactions:

1. Rs 6.75 crore allegedly diverted through multiple layers to promoter-linked entities.
2. Rs 12.14 crore claimed to be paid to four vendors with suspect credentials, without providing invoices.

Regulatory Actions

In response to these findings, SEBI has taken the following actions:

1. Banned Nirman Agri Genetics from accessing the securities market.
2. Halted all proposed corporate actions, including:
   • Bonus issues
   • Stock splits
   • Name change to Agriicare Life Corp Ltd.

Investigation Findings

SEBI's investigation yielded several red flags:

• NSE site visits confirmed that the entities receiving funds were non-existent at given addresses.
• No agricultural activities were found at the specified locations.

Changes in Shareholding Pattern

The investigation also highlighted significant changes in the company's shareholding structure:

Notably, the promoter, Pranav Kailas Bagal, sold 8.6 lakh shares, representing 10.71% of his holding, during September.

This case underscores the importance of regulatory oversight in protecting investor interests and maintaining the integrity of the securities market. It serves as a reminder for investors to exercise due diligence and for companies to adhere strictly to regulatory guidelines and ethical practices in fund utilization.