oswal agro mills has lost its statutory auditor, M/s. Mehta Chokshi & Shah LLP, following a disagreement over professional fees for the upcoming financial year. The chartered accountancy firm tendered its resignation effective from the closing working hours of August 11, 2026, stating that its fee proposal for continuing as statutory auditors for FY27 was not approved by the company. This development creates a casual vacancy in the auditor’s office that the company must fill in accordance with the Companies Act, 2013.

The resignation was disclosed to the Bombay Stock Exchange and the National Stock Exchange of India Limited on August 12, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing also referenced SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Aruna Oswal, Chairperson of Oswal Agro Mills Limited, signed the intimation letter submitted to the exchanges.

Mehta Chokshi & Shah LLP, which holds Firm Registration No. 106201W/W100598, had been appointed as the statutory auditors at the Annual General Meeting held on September 25, 2025, under Section 139 of the Companies Act, 2013. In its resignation letter addressed to the Board of Directors, the firm explained that it could not continue to discharge its duties without agreed remuneration commensurate with the scope, effort, and professional responsibility involved. Partner Rakesh Agarwal (Membership No. 170685) signed the resignation document.

The auditor explicitly stated that the decision to resign was a business decision arising solely from the non-agreement on fees. The firm confirmed that there are no other reasons, facts, or circumstances connected with the resignation that need to be brought to the attention of the members or creditors of the company. This clarity is significant for investors, as it rules out potential governance issues or disagreements over accounting treatments as drivers for the departure.

As per Section 140(2) of the Companies Act, 2013, Mehta Chokshi & Shah LLP is required to file a statement of resignation in Form ADT-3 with the Registrar of Companies within thirty days from the date of the resignation letter. The firm has requested the company to settle any outstanding professional fees for work already completed. It has also offered reasonable assistance and clarification to the incoming auditor to ensure a smooth transition, subject to the completion of customary professional formalities. The Board of Directors is now tasked with appointing a new statutory auditor to fill the casual vacancy under Section 139(8) of the Act.

Oswal Agro Mills Limited reported a significant turnaround in its consolidated profitability for the first quarter of FY26, driven by improved operational performance. The company posted a consolidated net profit of ₹512.69 lakh for the quarter ended June 30, 2026, marking a sharp recovery from a net loss of ₹1,745.91 lakh recorded in the same period of the previous fiscal year. This positive shift underscores the company's ability to navigate market challenges and stabilize its earnings trajectory early in the financial year.

The Board of Directors, at a meeting held on August 7, 2026, approved the unaudited standalone and consolidated financial results. The filing was submitted to the stock exchanges in compliance with Regulation 33 and Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Srishiti Agrawal, Company Secretary & Compliance Officer, signed off on the disclosure, which was subsequently published in newspapers on August 8, 2026.

Financial Performance Highlights

The company’s standalone operations also returned to profitability, reporting a net profit of ₹99.26 lakh for the quarter, compared to a profit of ₹1,418.74 lakh in Q1FY25. While the standalone profit decreased year-on-year, it represented a recovery from the loss position seen in the full previous fiscal year. The consolidated earnings per share (EPS) stood at ₹0.38, a notable improvement from the diluted EPS of -₹1.64 reported in Q1FY25.

The total comprehensive income for the consolidated entity was ₹1,040.69 lakh, compared to ₹2,347.03 lakh in the prior year quarter. In the standalone segment, comprehensive income was recorded at ₹100.31 lakh versus ₹1,408.94 lakh in Q1FY25.

What the Numbers Show

The most critical aspect of this quarter’s performance is the divergence between standalone and consolidated results. While the standalone entity maintained a modest profit, the consolidated group swung from a significant loss to a healthy profit. This suggests that the subsidiaries or associate companies accounted for under the equity method contributed positively to the bottom line, offsetting any operational pressures in the core standalone business. The reversal of the consolidated loss is a key indicator of improved group-wide efficiency and cost management during the quarter.