Rasandik Engineering Industries reported a narrowed net loss of ₹71.48 lakh for the quarter ended June 30, 2026, compared to a net loss of ₹112.31 lakh in the corresponding period of FY25. This represents a 36.4% reduction in losses year-on-year, driven primarily by a sharper decline in total expenses than in revenue.

The Board of Directors approved the unaudited financial results on August 14, 2026, pursuant to Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015. V. Sankar Aiyar & Co., the chartered accountants, issued a limited review report confirming that the statement complies with Ind AS 34 and relevant listing regulations.

Financial Performance

Revenue from operations stood at ₹1,760.07 lakh for Q1FY27, down 7.5% from ₹1,901.72 lakh in the preceding quarter and 7.4% lower than ₹1,387.11 lakh in Q1FY26. Total income was ₹1,765.02 lakh, including other income of ₹4.95 lakh.

Total expenses decreased to ₹1,859.65 lakh, a 12.0% drop from ₹2,110.96 lakh in Q4FY26 and a 19.5% decline from ₹1,535.53 lakh in Q1FY26. Key expense reductions included:

• Cost of materials consumed: ₹1,212.88 lakh (down from ₹1,356.47 lakh in Q4FY26)
• Employee benefits expense: ₹187.46 lakh (down from ₹202.64 lakh)
• Finance costs: ₹57.75 lakh (down from ₹60.35 lakh)
• Depreciation and amortization: ₹116.56 lakh (down from ₹118.91 lakh)

The profit before tax loss narrowed to ₹94.63 lakh from ₹148.15 lakh in Q1FY26. Deferred tax benefit of ₹23.15 lakh contributed to the final net loss figure.

What the Numbers Show

The divergence between revenue contraction and expense reduction highlights operational leverage efforts. While revenue declined 7.4% year-on-year, total expenses fell 19.5%, indicating successful cost rationalization measures. However, the company continues to operate at an operating loss, with expenses exceeding revenue by ₹99.58 lakh in the quarter. Finance costs remained stable at ₹57.75 lakh, suggesting no significant change in debt servicing obligations despite the working capital challenges.

Balance Sheet and Going Concern

As of June 30, 2026, Rasandik Engineering reported net current liabilities of ₹1,383.90 lakh, an improvement from ₹1,567.95 lakh as of March 31, 2026. The auditors noted this position but confirmed the results were prepared on a going concern basis, supported by:

• Promoter shareholder financial support commitments
• Cost rationalization initiatives
• Extended credit term negotiations with suppliers
• Asset monetization plans

The company received a letter of financial support from its Managing Director and substantial promoter to meet working capital needs as required.

Contingent Liabilities and Assets Held for Sale

The company disclosed several material items affecting future cash flows:

• Plant and equipment valued at ₹110.59 lakh classified as non-current assets held for sale, with full consideration of ₹400.00 lakh already received
• Capital work in progress of ₹320.00 lakh related to the Singur Project, West Bengal, which remains uninstalled following the Supreme Court's nullification of land acquisition
• Potential custom duty liability of ₹337.46 lakh under the EPCG license scheme, with an appeal filed before CESTAT for ₹304.98 lakh payment without interest
• Estimated contingent liability of ₹759.29 lakh for potential interest, redemption fines, and penalties if the CESTAT decision is adverse

Rasandik Engineering Industries India Limited has fixed Friday, July 24, 2026, as the record date to determine shareholder eligibility for its 42nd Annual General Meeting (AGM). The meeting is scheduled for Friday, July 31, 2026, at 11:00 A.M. IST through Video Conferencing (VC) or Other Audio-Visual Means (OAVM). The register of members and share transfer books will remain closed from July 24, 2026, to July 31, 2026, for this purpose.

Key Dates and Schedule

Shareholders whose names appear as beneficial owners or members in the register of members at the end of business hours on July 24, 2026, are eligible to attend and vote at the AGM. The company has established the following cut-off dates for the meeting proceedings:

Documentation and Compliance

The Annual Report for FY 2025-2026 and the Notice of the 42nd AGM will be sent electronically to members with registered email addresses. These documents will also be available on the company's website at www.rasandik.com/report.html . In compliance with Regulation 36(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has sent letters to members without registered email addresses providing the website link to access the Annual Report.