Rama Petrochemicals Limited reported a consolidated net loss of ₹730.03 lakh for the financial year ended March 31, 2026, significantly wider than the net loss of ₹40.72 lakh in the previous year. The company's board approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026 at a meeting held on May 26, 2026. The statutory auditors, Khandelwal & Mehta LLP, issued a qualified opinion on the financial results due to the company's treatment of a payment of ₹185 lakhs towards the release of collateral securities as 'Other Financial Assets', which is not in accordance with generally accepted accounting principles.

Financial Performance

For the quarter ended March 31, 2026, Rama Petrochemicals reported a total consolidated income of ₹16.18 lakh, compared to ₹3.73 lakh in the same period last year. Total expenses for the quarter stood at ₹211.42 lakh. The company reported a basic and diluted earnings per share (EPS) of (₹1.62) for the quarter. For the full year ended March 31, 2026, the company reported a consolidated net loss of ₹730.03 lakh on a total income of ₹59.20 lakh. In the previous year, the company had reported a net loss of ₹40.72 lakh on a total income of ₹9.32 lakh.

Audit Qualification

The statutory auditors, Khandelwal & Mehta LLP, issued a qualified opinion on the financial results. The qualification relates to the company's treatment of a payment of ₹185 lakhs towards the release of collateral securities as 'Other Financial Assets'. The auditors stated this is not in accordance with generally accepted accounting principles, resulting in Retained Earnings and Current Assets being higher by ₹185 lakhs as on March 31, 2026. This qualification has been recurring since the financial year 2021-2022.

Board Decisions

Alongside the financial results, the board approved the re-appointment of M/s H. G. Sarvaiya & Co, Chartered Accountants, as the Internal Auditor for the financial year 2026-2027. The firm, with registration number 115705W, was appointed based on the recommendation of the Audit Committee for a period of one year. The board also approved the Director's Report, Secretarial Audit Report, and the Report on Corporate Governance for the year ended March 31, 2026. The board fixed the date for the Fortieth Annual General Meeting (AGM) as Thursday, August 6, 2026. The meeting will be held through Video Conference (VC) or Other Audio Visual Means (OAVM) in compliance with relevant circulars issued by the Ministry of Corporate Affairs (MCA) and the Securities and Exchange Board of India (SEBI).

Rama Petrochemicals Limited has completed the conversion of 20,99,750 warrants into equity shares on April 13, 2026, marking the successful execution of its third tranche warrant conversion process. The Board of Directors approved this conversion through a circular resolution, raising ₹1,57,48,125 from the exercise of conversion rights by warrant holders.

Warrant Conversion Details

The conversion involved 20,99,750 warrants being converted into an equal number of equity shares with a face value of ₹10.00 each. The warrant holders paid an exercise price of ₹7.50 per warrant, representing 75% of the original warrant issue price of ₹10.00 per warrant.

Allottee Information

The warrant conversion was executed by two promoter group entities, demonstrating continued commitment from the company's promoter group.

Impact on Share Capital

The warrant conversion has resulted in a significant increase in the company's paid-up equity share capital. The newly allotted equity shares will rank pari-passu with existing equity shares in all respects, including dividend rights.

Regulatory Compliance

The allotment was conducted in accordance with SEBI ICDR Regulations, 2018, and the company has fulfilled all disclosure requirements under Regulation 30 of the SEBI Listing Regulations. The warrants were originally allotted on March 21, 2025, with warrant holders having paid 25% of the issue price initially at ₹2.50 per warrant. The current conversion represents the payment of the remaining 75% balance amount.

The conversion process was executed on a preferential allotment basis through private placement, with all regulatory formalities completed as per SEBI guidelines. The company has made the relevant information available on its website at www.ramapetrochemicals.com for stakeholder reference.