Novateor Research Laboratories reported a 23.7% year-on-year increase in net profit to ₹10.12 lakh for the financial year ended March 31, 2026. Revenue from operations expanded by 37.8% to ₹382.75 lakh, driven by higher sales of products and services. The company also converted equity warrants worth ₹121.80 lakh into shares during the period.

Despite the growth in top-line figures, the independent auditors issued a qualified opinion on the financial statements. The audit firm cited non-compliance with Accounting Standards regarding inventory valuation, revenue recognition, and employee benefits.

Financial Performance

The company’s total revenue stood at ₹431.62 lakh, up from ₹325.31 lakh in the previous fiscal year. Other income remained relatively stable at ₹48.88 lakh compared to ₹47.58 lakh in FY25.

While revenue grew significantly, EBITDA remained flat at ₹11.35 lakh. Finance costs increased to ₹8.58 lakh from ₹7.12 lakh, reflecting higher borrowing levels. Depreciation and amortization expenses rose to ₹18.52 lakh.

Auditor Qualifications

Statutory auditors H K Shah & Co highlighted several critical deviations in their report:

• Inventory valuation under AS-2 was not followed, with technical valuations deemed unquantifiable.
• Revenue recognition under AS-9 was not adhered to, as interest incomes were not realized and were subject to disputes.
• Employee benefits under AS-15 were not recorded as provisions; instead, expenses were recognized only when crystallized.
• Segment reporting requirements under AS-17 were ignored.

Additionally, GST turnover aggregating to ₹9.83 lakh remains under reconciliation with the books of account.

What the Numbers Show

Other income constitutes approximately 12.8% of total revenue for FY26, indicating a reliance on non-operating streams alongside core business activities. The company’s debt-equity ratio remains low at 0.09 times, suggesting manageable leverage despite the increase in short-term borrowings to ₹69.80 lakh.

Corporate Developments

The Board proposed shifting the registered office from Ahmedabad city limits to Sanand, Gujarat, citing operational convenience and proximity to manufacturing facilities. Shareholders will vote on this special resolution at the upcoming Annual General Meeting on September 29, 2026. No dividend was recommended for the fiscal year.

Novateor Research Laboratories has scheduled its 15th Annual General Meeting (AGM) for September 29, 2026. The meeting will focus on approving the shift of the registered office to Sanand and ratifying related-party transactions with key directors.

The Board of Directors convened on September 3, 2026, to approve the notice and resolutions for the upcoming AGM. The company also reappointed its auditors for FY27 during this session.

AGM Schedule and Eligibility

The 15th AGM will be held at the current registered office in Ahmedabad on Tuesday, September 29, 2026, at 3:00 pm. Shareholders holding shares as on the record date of September 25, 2026, will be eligible to attend and vote. Since there are no physical shareholders, the register of members and share transfer books will not be closed.

Key Resolutions

The AGM agenda includes ordinary and special business items requiring shareholder approval.

Ordinary Business

• Adoption of Financial Statements: Shareholders will consider and adopt the audited financial statements, including the balance sheet, profit and loss statement, and cash flow statement for the financial year ended March 31, 2026.
• Director Reappointment: Mr. Jitin Jaysukh Doshi (DIN: 07325340), who retires by rotation, seeks reappointment as a director. He holds a Bachelor’s degree in Commerce and has over three decades of experience in marketing and system management.

Special Business

• Shifting Registered Office: A special resolution will seek approval to move the registered office from Dev Atelier, Prahladnagar, to Plot No. PE-11, Sanand-II, GIDC Industrial Estate, Sanand. The board cites operational convenience, proximity to manufacturing facilities, cost optimization, and better connectivity as reasons for the move. This change requires shareholder consent under Section 12 of the Companies Act, 2013.
• Related-Party Transactions: The board seeks approval for transactions with two directors:
  • Mr. Navdeep Mehta: Approval for contracts up to ₹50 lakh for FY27 for purchase/sale of goods and services.
  • Mr. Jitin Jaysukh Doshi: Approval for contracts up to ₹50 lakh for FY27 for similar business activities.

Both transactions are proposed at arm's length prices in the ordinary course of business.

Auditor Appointments

During the September 3 board meeting, Novateor Research Laboratories reappointed:

• Mr. Mehul Raval as Secretarial Auditor for FY27.
• M/s. N. C. Vasa & Co. as Internal Auditor for FY27.

The draft Directors’ Report for FY26 was also approved during the meeting.