Padmanabh Industries Limited announced on August 12, 2026, that its statutory auditor, S K Bhavsar & Co., has resigned from the position effective immediately. The resignation follows a Board meeting held on Wednesday, August 12, 2026, requiring the company to appoint a new statutory auditor to ensure continuity in financial oversight. This development impacts the company's compliance timeline for FY26 audits.

The Board of Directors approved the intimation in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The meeting commenced at 1:30 PM and concluded at 2:00 PM. Akash Parmar, Managing Director of Padmanabh Industries Limited, signed the disclosure submitted to BSE Ltd. The disclosure also references SEBI Circular No. CIR/CFD/CMD/4/2015 dated September 9, 2015.

Reasons for Resignation

S K Bhavsar & Co., Chartered Accountants, cited two primary reasons for their departure. First, the firm referenced other pre-existing professional commitments that conflict with the time required for the audit role. Second, the resignation letter explicitly mentions a "recent change in the management of the Company" as a contributing factor.

The auditor clarified that these factors have made it difficult to devote the requisite time and attention needed to discharge duties effectively. Despite the resignation, S K Bhavsar & Co. confirmed that there are no material reasons for the departure other than those stated. Specifically, the firm declared that the resignation is not due to any fraud, non-compliance, or irregularity in the company’s affairs that would require reporting under Section 143(12) of the Companies Act, 2013.

Auditor Details and Tenure

S K Bhavsar & Co. was originally appointed as the statutory auditor on September 5, 2024. The appointment was made for a term of five years, covering the financial year 2024-25 and subsequent years, in accordance with the Companies Act, 2013 and SEBI (LODR) Regulations.

Shivam Bhavsar, Proprietor of S K Bhavsar & Co. (Membership No: 180566, FRN: 0145880W), signed the resignation letter. The firm’s office is located at 1047, Sun Gravitas, Nr Shyamal Cross Road, Satellite, Ahmedabad-380015.

Regulatory Compliance

The resignation process adhered to all necessary regulatory protocols. The Audit Committee of Padmanabh Industries Limited was informed of the resignation at its meeting. Furthermore, S K Bhavsar & Co. confirmed that it did not receive any communication from the company relating to concerns or issues with the audit prior to the resignation.

A copy of the resignation letter has been submitted to the Registrar of Companies (RoC) and the Stock Exchanges, as mandated by the Companies Act, 2013 and SEBI regulations.

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.