Novateor Research Laboratories passed all resolutions proposed at its 15th Annual General Meeting held on September 29, 2026. The company adopted audited financial statements for FY26 and reappointed Jitin Jaysukh Doshi as a director.

The meeting, chaired by Managing Director Navdeep Mehta, commenced at 3:00 pm at the registered office in Ahmedabad. Statutory registers were available for inspection, and the notice convening the meeting was taken as read before resolutions were put to vote. The voting results were subsequently filed with the stock exchange on October 1, 2026.

Key resolutions passed

Shareholders unanimously approved the adoption of the balance sheet, profit and loss statement, and cash flow statement for FY26. Jitin Jaysukh Doshi (DIN: 07325340), who retired by rotation, was reappointed as a director. The board also received authorization to shift the registered office within Gujarat but outside the local limits of the current city.

Voting details and exclusions

The scrutinizer’s report detailed the voting patterns for each resolution. Notably, votes cast by interested parties were excluded from the calculation of valid votes for related party transactions and director reappointments.

For the reappointment of Mr. Doshi and the related party transaction involving him, votes cast by Mr. Jitin Jaysukh Doshi, Jaysukhlal Shantilal Doshi, Preeti Jitin Doshi, Rushabh Jitin Doshi, and Yashika Jitin Doshi were treated as invalid under Section 188(1) of the Companies Act, 2013.

Similarly, for the related party transaction with Mr. Navdeep Mehta, votes cast by Mr. Navdeep Subhashbhai Mehta, Navdeep Mehta HUF, Jyoti Ben Subhas Chandra Mehta, and Subhash Chandra Mangal Mehta were excluded.

Related party transaction approvals

The company secured approval for two ordinary resolutions authorizing related party transactions for FY27 under Section 188 of the Companies Act, 2013. These caps ensure regulatory compliance for dealings with senior management.

What the numbers show

The approval of ₹50 lakh caps for both the Managing Director and the reappointed director indicates a standardized limit on related party exposures for the upcoming fiscal year. This uniform ceiling suggests a structured approach to governance, ensuring that individual director-level transactions remain within a predefined aggregate threshold relative to the company's scale. The high number of invalid votes in related party resolutions reflects strict adherence to statutory requirements excluding interested parties from voting on their own transactions.

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.