North Eastern Carrying Corporation Limited reported a 13% year-on-year increase in net profit to ₹2.01 crore for the quarter ended June 30, 2026, driven by a 9.4% rise in revenue from operations. The growth underscores steady demand in its exclusive transportation business segment, providing shareholders with consistent profitability despite broader market fluctuations. However, statutory auditors highlighted governance concerns regarding the company’s failure to provide for doubtful debts and unconfirmed balances.

The Board of Directors approved these unaudited standalone financial results at a meeting held on August 04, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, M/s. Nemani Garg Agarwal & Co., Chartered Accountants, in accordance with Regulation 33 of the same regulations. The financial results were prepared in accordance with Indian Accounting Standards notified under Section 133 of the Companies Act, 2013.

Financial Performance Highlights

Revenue from operations rose to ₹75.58 crore from ₹69.10 crore in the corresponding period of the previous year. Total income stood at ₹77.25 crore, compared to ₹69.25 crore previously. Operating expenses remained controlled, with employee benefits expense at ₹3.74 crore and finance costs at ₹2.11 crore. Profit before tax increased significantly by 37% to ₹3.29 crore from ₹2.40 crore. Tax expenses amounted to ₹1.28 crore, comprising current tax of ₹1.22 crore and deferred tax of ₹0.06 crore.

Auditor Observations and Governance

The statutory auditors issued a modified conclusion on the statement due to specific observations. M/s. Nemani Garg Agarwal & Co. noted that the company has not provided for doubtful debts, citing management's opinion that debtors are fully realizable. Additionally, the auditors stated that debit and credit balances are subject to confirmation. These disclosures indicate potential monitoring gaps in working capital management that shareholders should monitor.

In other governance matters, the Board re-appointed M/s. Nemani Garg Agarwal & Co. as Statutory Auditor for a five-year term from FY2026-27 to FY2030-31. The Board also approved the re-appointment of Sunil Kumar Jain as Chairman and Managing Director, and Utkarsh Jain as Whole-time Director, both serving five-year terms commencing October 01, 2026.

What the Numbers Show

A notable divergence exists between the growth in pre-tax profits and the flat earnings per share (EPS). While profit before tax surged 37% year-on-year, EPS remained constant at ₹0.18 per share. This is primarily due to an increase in paid-up equity share capital from ₹100 crore to ₹104.50 crore during the preceding quarter, which diluted the per-share impact of the higher absolute profits. The company’s total comprehensive income for the period was ₹1.90 crore.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE553C01016/aa475596-abd5-43db-bc83-99ed41deafa4.pdf

Utkarsh Jain, Promoter and Director of north eastern carrying corp. , has acquired a 12% stake in SG Green Logistics Private Limited for a cash consideration of ₹35.99 crore. The transaction, involving the purchase of 3,356 equity shares, was executed in his individual capacity and does not constitute a related party transaction for the listed entity. The company confirmed that this acquisition bears no relation to its operations, management, or shareholding structure.

SG Green Logistics Private Limited was incorporated on April 21, 2022, and operates in the logistics sector, specifically engaging in fleet carriage and goods transportation. The target entity reported a steady increase in turnover over the past three financial years, reflecting its growth trajectory in the industry.

Financial Performance of Target Entity

The turnover of SG Green Logistics Private Limited has shown consistent growth since its inception. The financial figures for the last three years are detailed below:

The disclosure was made to BSE Limited and National Stock Exchange of India Limited in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. No governmental or regulatory approvals were required for the completion of this acquisition.