Pushpsons Industries reported a substantial improvement in profitability for the first quarter of FY27, with standalone net profit rising to ₹2.61 lakh compared to ₹0.60 lakh in the same quarter of the previous fiscal year. The carpet and made-ups exporter also saw its revenue from operations more than double, reaching ₹137.30 lakh against ₹72.44 lakh in Q1FY26.

The results were approved by the Board of Directors at a meeting held on August 13, 2026, in New Delhi. The unaudited financial statements were reviewed by the Audit Committee and subsequently taken on record by the Board. Statutory auditors Ritu Gupta & Co. issued an unmodified opinion on the quarterly results before tendering their resignation effective immediately from the close of business hours on August 13, 2026.

Financial Performance

The company’s top-line growth was supported by a sharp increase in operational revenue. Total income for the quarter stood at ₹141.61 lakh, up from ₹75.25 lakh in Q1FY25. Other income contributed ₹4.31 lakh, an increase from ₹2.81 lakh in the prior year period.

Expenses rose in tandem with revenue, totaling ₹139.00 lakh compared to ₹74.65 lakh in Q1FY26. Cost of materials consumed increased to ₹61.16 lakh from ₹48.44 lakh. Employee benefit expenses remained relatively stable at ₹15.32 lakh, slightly lower than the ₹15.82 lakh recorded in the previous year. Finance costs were minimal at ₹0.24 lakh.

What the Numbers Show

A key observation from the filing is the divergence between revenue growth and profit expansion. While revenue grew by approximately 89%, net profit surged by over 335%. This disproportionate rise suggests improved operational efficiency or margin expansion during the quarter, as total expenses grew at a similar rate to revenue (86%) but left a larger residual profit due to the higher base effect of the previous year’s low profitability.

Balance Sheet and Capital Structure

The company maintains a debt-free structure for the current period, with a debt-equity ratio reported as 0.00. This is consistent with the low finance costs disclosed in the income statement. Paid-up equity share capital remains unchanged at ₹527.05 lakh. The basic earnings per share (EPS) for the quarter was ₹0.04, up from ₹0.02 in Q1FY26.

Pushpsons Industries operates in a single reportable segment: 'Export of Carpet & Made-ups'. There were no exceptional items or discontinued operations reported during the quarter. The company also confirmed that there were no outstanding investor complaints received during the period.

Corporate Actions: Auditor Change and AGM Dates

During the same Board meeting, the company announced significant changes to its statutory audit arrangements. M/s. Ritu Gupta & Co., Chartered Accountants (Registration No. 119890W), tendered their resignation as Statutory Auditors effective immediately from the close of business hours on August 13, 2026. In their resignation letter, the firm cited preoccupation with other assignments, personal commitments, and non-availability of audit staff as reasons for stepping down. They confirmed that there were no concerns raised with respect to the management of the Company nor any material reasons for the resignation other than those stated.

To fill this casual vacancy, the Board appointed M/s. R. Verma & Associates, Chartered Accountants (Firm Registration No. 08026N), as Statutory Auditors. This appointment is effective from August 13, 2026, until the conclusion of the ensuing Annual General Meeting (AGM). Additionally, the Board recommended the appointment of M/s. R. Verma & Associates for a term of five consecutive years, commencing from the conclusion of the AGM until the conclusion of the 37th AGM in 2031, subject to shareholder approval. M/s. R. Verma & Associates was set up in 1987 and has expertise in audit, due diligence, taxation, and management consultancy.

The Board also scheduled the company’s 32nd Annual General Meeting for Tuesday, September 29, 2026. The book closure dates for the AGM will be from Wednesday, September 23, 2026, to Tuesday, September 29, 2026 (both days inclusive).

Furthermore, the Board approved an application for the rectification and updation of issued and paid-up share capital in exchange records. This action addresses a historical discrepancy stemming from the forfeiture of equity shares effected in the financial year 2003. The application seeks to update exchange records to reflect the post-forfeiture capital of 46,50,100 equity shares, replacing the previously reflected figure of 58,90,900 equity shares.

Hem Holdings and Trading Limited reported a standalone net loss of ₹259.55 lakh for the quarter ended June 30, 2026, reversing a net profit of ₹15.68 lakh in the corresponding period of FY25. The financial downturn was primarily driven by a non-recurring exceptional item of ₹252.21 lakh, which overshadowed operational activities that generated zero revenue during the quarter. This significant deviation from prior profitability underscores the impact of one-off charges on the company's bottom line, with basic earnings per share plummeting to -₹108.15 from ₹6.53 in the prior year.

The Board of Directors approved the unaudited financial results at its meeting held on August 06, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditor, B.M. Gattani & Co. The auditor issued a report stating that nothing came to their attention to suggest material misstatement in the financial statements prepared under Ind AS 34.

Financial Performance Overview

The company recorded zero revenue from operations and zero other income for the quarter, resulting in total revenue of nil. This contrasts sharply with the preceding quarter (Q4FY26), where revenue stood at ₹8.18 lakh, and the corresponding quarter of the previous year (Q1FY25), which saw revenue of ₹20.71 lakh. Despite the absence of revenue, total expenses amounted to ₹7.34 lakh, driven mainly by other expenses of ₹5.96 lakh and employee benefits of ₹1.37 lakh.

What the Numbers Show

The divergence between the company’s operational stability and its bottom-line loss highlights the impact of non-recurring events. While operating expenses remained relatively contained at ₹7.34 lakh—comparable to the ₹5.03 lakh incurred in Q1FY25—the introduction of a ₹252.21 lakh exceptional item fundamentally altered the profitability profile. With paid-up equity share capital remaining unchanged at ₹24.00 lakh, the basic earnings per share plummeted to -₹108.15 from ₹6.53 in the prior year, reflecting the disproportionate weight of the exceptional charge against the small equity base.