Padmanabh Industries returned to profitability in the first quarter of FY27, reporting a net profit of ₹1.15 lakh for the period ended June 30, 2026. This marks a recovery from the net loss of ₹2.05 lakh recorded in the same quarter of the previous year. Revenue from operations for the quarter stood at ₹110 lakh, a significant increase from the ₹11.50 lakh reported in Q1FY26.

The Board of Directors approved the unaudited standalone financial results during a meeting held on July 22, 2026. The results were reviewed by the Audit Committee prior to approval. S K Bhavsar & Co., Chartered Accountants, conducted a limited review of the financial statements in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Total income for the quarter was reported at ₹110 lakh, driven entirely by revenue from operations as other income remained nil. On the expense side, the company reported total expenses of ₹108.85 lakh. Purchases of stock-in-trade were recorded at ₹115.94 lakh, partially offset by a negative change in inventories of stock-in-trade amounting to ₹16.66 lakh.

The company’s profit before tax for the quarter was ₹1.15 lakh, with total tax expenses recorded at nil for the period. Consequently, the net profit for the period from continuing operations was ₹1.15 lakh. There were no exceptional or extraordinary items reported during the quarter.

Earnings per share (EPS) for the quarter improved to ₹0.02 on a basic and diluted basis, compared to a loss of ₹0.03 per share in the corresponding quarter of the previous year. The paid-up equity share capital remained constant at ₹607.75 lakh with a face value of ₹10 per share.

Financial Performance Summary

All figures are in ₹ lacs except per share data.

Padmanabh Industries Limited has announced its audited standalone financial results for the quarter and year ended March 31, 2026. The Board of Directors approved the results during a meeting held on May 14, 2026, following a review by the Audit Committee. The statutory auditors, M/s. S K Bhavsar & Co., Chartered Accountants (Firm Registration No.: 145880W), issued an unmodified audit report for the period. In compliance with Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published its audited financial results in Jaihind (Gujarati) and Business Standard (English) newspapers on May 15, 2026. The company reported a significant surge in revenue and profitability for the quarter compared to the corresponding period in the previous year.

Financial Performance Overview

For the quarter ended March 31, 2026, Padmanabh Industries reported total income of ₹1471.28 lakh, a substantial increase from ₹246.78 lakh in the same quarter of the previous year. Net profit for the quarter stood at ₹22.86 lakh, marking a 228% rise compared to ₹6.97 lakh in the quarter ended March 31, 2025. For the full year, total income reached ₹2202.77 lakh compared to ₹311.30 lakh in the previous year, while net profit was ₹23.88 lakh against ₹1.46 lakh. The company operates within a single primary business segment — trading of agriculture products.

Key Financial Metrics

The table below summarizes the financial performance for the quarter and year ended March 31, 2026:

Balance Sheet Highlights

As at March 31, 2026, Padmanabh Industries reported total assets of ₹332.09 lakh. The company's balance sheet reflects a significant build-up in current assets, primarily driven by inventories of ₹232.29 lakh and trade receivables of ₹60.53 lakh. Cash and cash equivalents stood at ₹9.62 lakh. On the equity side, paid-up equity share capital was ₹607.75 lakh, while other equity stood at ₹(588.66) lakh, resulting in total equity of ₹19.09 lakh. The key balance sheet figures are presented below:

Cash Flow Summary

For the year ended March 31, 2026, the company generated net cash from operating activities of ₹251.93 lakh, a significant turnaround from a net cash outflow of ₹(283.07) lakh in the previous year. Net cash used in financing activities was ₹(250.78) lakh, primarily on account of repayment of short-term borrowings of ₹(232.93) lakh and interest expenses of ₹(17.85) lakh. As a result, cash and cash equivalents increased from ₹8.47 lakh at the opening of the year to ₹9.62 lakh at the close.

Regulatory Compliance

In accordance with Regulation 47 of SEBI (LODR) Regulations, 2015, Padmanabh Industries published its audited financial results in two newspapers on May 15, 2026. The results were carried in Jaihind, a Gujarati-language newspaper, and Business Standard, an English-language newspaper. The intimation was submitted to BSE Limited and signed by Akash B. Parmar, Managing Director (DIN: 11570362).

Auditor's Observations

While the statutory auditors issued an unmodified audit report, they drew attention to several matters of concern. The auditors noted the absence of balance confirmation letters, party-wise reconciliation statements, and age-wise analysis for certain trade receivable and trade payable balances, making it impossible to verify their existence, completeness, accuracy, and recoverability. Additionally, satisfactory supporting documents for inventory valuation were not provided. The company also failed to appoint an Internal Auditor for the entire financial year 2025-26, constituting a non-compliance with Section 138 of the Companies Act, 2013, which the auditors noted has resulted in a significant gap in the internal control framework. Furthermore, the bifurcation of trade payables between Micro, Small and Medium Enterprise (MSME) and non-MSME creditors was not disclosed, representing non-compliance with the MSME Development Act, 2006. The auditors also flagged that loans granted by the company lacked supporting confirmations and loan agreements, making it impossible to verify their accuracy, recoverability, and interest-free nature. All these matters were communicated to the Board of Directors and the Audit Committee, and the auditors' conclusion was not modified in respect of any of these matters.