oswal greentech disclosed on August 12, 2026, that its statutory auditor, Mehta Chokshi & Shah LLP, has resigned from office effective August 11, 2026. The resignation stems directly from a disagreement regarding audit fees, marking a potential disruption to the company’s financial reporting cycle for the upcoming fiscal year.

The firm stated that it submitted a fee proposal for continuing as statutory auditors for the financial year FY 2026-27, along with the scope of audit work. However, the company did not approve the proposal. In the absence of an agreed remuneration commensurate with the scope, effort, and professional responsibility involved, Mehta Chokshi & Shah LLP declared it unable to continue discharging its duties.

The resignation was communicated pursuant to Section 140(2) of the Companies Act, 2013, read with Rule 8 of the Companies (Audit and Auditors) Rules, 2014. Mehta Chokshi & Shah LLP confirmed that this is a business decision arising solely from non-agreement on fees. The firm explicitly stated there are no other reasons, facts, or circumstances connected with the resignation that need to be brought to the attention of members or creditors.

The company must now appoint a new statutory auditor in accordance with the provisions of the Companies Act, 2013. This may involve filling a casual vacancy under Section 139(8) of the Act if the Board chooses to appoint an interim auditor before the next Annual General Meeting. Mehta Chokshi & Shah LLP requested that outstanding professional fees for work already completed be settled at the earliest.

Mehta Chokshi & Shah LLP will 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 offered to provide reasonable assistance and clarification to the incoming auditor to ensure a smooth transition, subject to the completion of customary professional formalities. The original appointment of Mehta Chokshi & Shah LLP was made at the Annual General Meeting held on September 25, 2025, under Section 139 of the Companies Act, 2013.

Oswal Greentech Limited reported a net profit of ₹841.91 lakh for the first quarter of FY26, driven by improved operational performance compared to the prior year. The company’s total income from operations stood at ₹470.63 lakh for the three months ended June 30, 2026. This result follows a period of volatility, as the company posted a net loss of ₹8,315.70 lakh in the preceding quarter ended March 31, 2026.

The Board of Directors approved the unaudited standalone financial results at a meeting held on August 07, 2026. The results were reviewed by the Audit Committee and filed with the stock exchanges pursuant to Regulation 33 and Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company published an extract of these results in newspapers on August 08, 2026.

Financial Performance

The company returned to profitability in Q1FY26 after reporting losses in the previous quarter and significant losses in the full fiscal year ended March 31, 2026. Basic and diluted earnings per share (EPS) were ₹0.33 for the current quarter, compared to a loss of ₹3.24 per share in Q4FY26 and a profit of ₹0.26 per share in Q1FY25.

What the Numbers Show

The divergence between pre-tax profits and net profit after tax highlights the impact of exceptional items on the company's bottom line. While the net profit before exceptional items and tax was positive at ₹934.19 lakh in Q1FY26, the full-year FY26 saw a massive swing from a pre-tax profit of ₹4,200.72 lakh to a post-tax loss of ₹6,241.86 lakh due to exceptional charges of ₹5,921.47 lakh. In the current quarter, there were no exceptional items, allowing the pre-tax profit of ₹934.19 lakh to translate directly into a post-tax profit of ₹841.91 lakh. This indicates that the recent profitability is operational rather than driven by one-off gains, contrasting with the heavy exceptional losses recorded in the prior fiscal year.