Nitiraj Engineers Limited reported a 78% decline in net profit for the financial year ended March 31, 2026, primarily due to a sharp drop in revenue. The company’s profit for the period stood at ₹106.06 lakh, down from ₹483.10 lakh in the previous year, while revenue from operations decreased 39% to ₹4,641.07 lakh. The board of directors approved the audited standalone financial results for the year and quarter on May 29, 2026.

The statutory auditors issued an unmodified opinion on the financial results, confirming compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. For the quarter ended March 31, 2026, the company reported a net loss of ₹63.74 lakh, contrasting with a profit of ₹39.42 lakh in the preceding quarter ended December 31, 2025. Quarterly revenue from operations also declined significantly to ₹817.76 lakh from ₹1,130.69 lakh in Q3FY26.

Total expenses for FY26 decreased to ₹4,648.09 lakh from ₹7,080.12 lakh in the prior year, driven by lower costs of materials consumed and other expenses. However, employee benefits expense rose to ₹728.79 lakh from ₹655.46 lakh. The finance costs for the year reduced to ₹6.20 lakh compared to ₹20.04 lakh in FY25.

Financial Performance Summary

The balance sheet as of March 31, 2026, shows total assets at ₹9,316.25 lakh, slightly higher than ₹9,255.41 lakh in the previous year. Equity stood at ₹8,233.52 lakh, while liabilities amounted to ₹1,082.72 lakh. Cash and cash equivalents improved to ₹331.54 lakh from ₹204.99 lakh at the end of FY25.

The company’s cash flow from operating activities turned negative at ₹(342.98) lakh for FY26, compared to a positive inflow of ₹1,419.81 lakh in the previous year. This shift was attributed to a significant increase in inventories and other financial assets. Investing activities resulted in a net inflow of ₹629.47 lakh, largely driven by proceeds from the sale of investments amounting to ₹1,370.00 lakh.

Nitiraj Engineers Limited has secured approval from the Government of India as a Government Approved Test Centre (GATC) under Section 24 of the Legal Metrology Act, 2009. The approval was granted by the Ministry of Consumer Affairs, Food & Public Distribution, Department of Consumer Affairs, Legal Metrology Division. Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company disclosed that this development is expected to yield an estimated annual saving of approximately Rs. 50 Lakhs through reduction in external verification costs, logistics expenses, processing timelines, and operational efficiencies.

GATC Approval: Key Details

The certificate authorizes Nitiraj Engineers' Calibration Division, located at J25 & J26, M.I.D.C., Awadhan, Dhule, Maharashtra, Pin Code - 424006, to verify weighing instruments manufactured by the company. The following table summarizes the key parameters of the approval:

The certificate was signed by Ashutosh Agarwal, Director (Legal Metrology), Ministry of Consumer Affairs, Food & Public Distribution, Government of India, and a copy was forwarded to the Controller of Legal Metrology, Government of Maharashtra.

Operational and Financial Benefits

By virtue of the in-house government approved verification and calibration facility, Nitiraj Engineers anticipates significant operational and financial benefits. The approval is expected to deliver the following advantages:

• Estimated annual saving of approximately Rs. 50 Lakhs through reduction in external verification costs and logistics expenses
• Improved turnaround time for product dispatches
• Enhanced operational efficiency
• Strengthened quality control systems
• Improved customer servicing capabilities

The company believes that this approval shall positively contribute towards operational profitability and efficiency in the coming financial years.

Conditions of the GATC Approval

The approval is subject to a comprehensive set of conditions prescribed by the Legal Metrology Division. Key obligations include:

• The company must make its premises available for initial assessment, re-assessment, or inspection by the Director of Legal Metrology or authorized officers as required.
• All instruments at the GATC must be calibrated with valid verification/calibration certificates and accuracies/uncertainties in line with Legal Metrology (General) Rules 2011 or OIML Recommendations; failure to comply may result in suspension of the GATC.
• The GATC must obtain third-party liability insurance sufficient to cover any claims for damage arising from lapses or violations of government instructions.
• The approval certificate must be displayed prominently at the premises where the GATC performs its functions.
• Traceability of all weights and measures certified must be maintained, with records available in soft or hard form at the GATC and on the Legal Metrology portal.
• Photographic or video evidence of the verification of each weight or measure must be maintained at the GATC and on the Legal Metrology portal.
• The GATC approval is neither saleable, assignable, nor transferable.
• Any change in the organisation or qualified persons must be reported immediately to the Director of Legal Metrology.
• The company must apply for renewal of the approval well in advance of its expiry date.

Regulatory and Compliance Context

The approval is governed by the Legal Metrology Act, 2009, which regulates weights and measures in India to ensure accuracy and consumer protection. The Director of Legal Metrology retains the authority to suspend or revoke the GATC approval in the event of non-compliance with the Act, its rules, or any conditions of the approval, subject to providing the holder a reasonable opportunity to show cause. All conditions prescribed after the issuance of the approval are binding on Nitiraj Engineers. The disclosure was filed by Deepika Dalmiya, Company Secretary & Compliance Officer (M.No: A58029), on behalf of Nitiraj Engineers Limited.