Organic Coatings reported a widened net loss of ₹325.88 lakh for the financial year ended March 31, 2026, compared to a net loss of ₹210.23 lakh in the previous year. The company's revenue from operations declined to ₹2,809.33 lakh in FY26 from ₹2,895.79 lakh in FY25, impacted by rising expenses. Total expenses for the year increased to ₹3,145.76 lakh from ₹3,110.68 lakh in the prior year. Consequently, the Board of Directors decided not to recommend any dividend for the year due to the loss.

The statutory auditors, M/s. Soman Uday & Co., issued an audit report with an unmodified opinion on the audited financial statements for the year ended March 31, 2026. The financial results were reviewed by the Audit Committee and approved by the Board at its meeting held on May 30, 2026. The company reported that it does not have different segments, and therefore, segment-wise reporting is not applicable.

Operational Performance

For the quarter ended March 31, 2026, the company reported a net loss of ₹84.99 lakh on a revenue of ₹962.10 lakh. In comparison, the quarter ended March 31, 2025, saw a net loss of ₹77.58 lakh on revenue of ₹635.00 lakh. Total income for the quarter stood at ₹964.82 lakh, while total expenses amounted to ₹1,049.81 lakh.

The basic and diluted earnings per share (EPS) for FY26 were reported at (₹3.27), compared to (₹2.11) in the previous year. The paid-up equity share capital remained constant at ₹997.46 lakh with a face value of ₹10 each.

Financial Position

The company's balance sheet as of March 31, 2026, showed total assets of ₹2,427.99 lakh, up from ₹1,776.82 lakh in the previous year. Current assets increased significantly to ₹1,473.97 lakh, driven by higher inventories at ₹534.59 lakh and trade receivables at ₹805.02 lakh. Cash and cash equivalents improved to ₹97.30 lakh from ₹5.88 lakh.

On the liabilities side, total equity stood at ₹2.27 lakh, a sharp decrease from ₹329.21 lakh in the prior year, primarily due to the accumulated losses reflected in other equity. Total liabilities increased to ₹2,425.72 lakh, with current borrowings rising to ₹689.32 lakh and trade payables reaching ₹1,197.33 lakh.

Corporate Governance Updates

During the Board meeting, the appointment of Mr. Ramanathan Ganesh and Mr. Subhash Ambubhai Patel as Independent Directors was deferred. Additionally, the Board accepted the resignation of Mrs. Nivedita Kulkarni as Company Secretary and Compliance Officer, effective May 29, 2026, due to personal reasons. The company also decided to maintain its books of account at its Baroda works in Gujarat.

Organic Coatings Limited has accepted the resignation of its Secretarial Auditor, Mr. J.J. Gandhi, effective June 10, 2026. The resignation, tendered via email, was for the financial year 2026-27 and took effect immediately. The company disclosed this development to BSE Limited in a filing submitted on June 13, 2026.

Mr. J.J. Gandhi of M/s. J.J. Gandhi & Co., Practicing Company Secretaries, cited personal reasons for his inability to continue in the role. He had been appointed to the position by the Board of Directors at a meeting held on April 29, 2026, pursuant to Section 204 of the Companies Act, 2013.

The company acknowledged a delay in submitting the required disclosure within the prescribed time limit. It attributed the oversight to an inadvertent and unintentional miss, requesting that the exchange condone the delay and treat the intimation as compliant with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details of the Resignation

The following table outlines the key details regarding the change in the Secretarial Auditor:

The information has been made available on the company's website. Ajay R. Shah, Whole-time Director & CFO, signed the disclosure on behalf of Organic Coatings Limited.