Raunaq International Limited shareholders approved a material related-party transaction valued at up to ₹10 crore with Bharat Gears Limited during the 61st Annual General Meeting held on July 31, 2026. The company also reported a significant turnaround in FY26, with total revenue rising nearly 67% to ₹3,689.37 lakh from ₹2,206.43 lakh in the previous year.

The meeting, conducted via video conference, saw the approval of four resolutions with requisite majorities. Alongside the related-party transaction, members adopted the audited financial statements for the year ended March 31, 2026, and re-appointed Mr. Naresh Kumar Verma as a Non-Executive Director.

Financial Performance and Order Book

The chairman highlighted that the company successfully transitioned from a loss-making position to profitability during FY26. This growth was supported by new order wins in the thermal power EPC sector. Key developments included:

• A ₹15.40 crore order from Mahan Energen Limited for the 2x800 MW Ultra Supercritical Thermal Power Plant project in Madhya Pradesh.
• Two additional orders from Adani Cement Limited aggregating over ₹18.00 crore for raw water piping systems and associated erection works.

Despite the revenue surge, operating profit margin stood at 3.01% and net profit margin at 0.25%. The board attributed the moderation in margins to higher operating costs associated with increased business activity and project execution.

Related Party Transaction Details

The special business resolution approved a transaction with Bharat Gears Limited (BGL), a company within the promoter group. The details of the proposed arrangement are outlined below:

The transaction is intended to ensure timely procurement of pipes, supporting uninterrupted operations without requiring letter of credit facilities. Promoter and promoter group votes were excluded from this resolution, which passed with 100% of the valid votes cast by non-promoter shareholders.

Corporate Governance Appointments

Shareholders also appointed M/s Ankita S. Jain & Co., Company Secretaries based in Jhansi, as the secretarial auditors for a five-year term commencing from FY27. The remuneration for the first year is fixed at ₹75,000, excluding applicable taxes and out-of-pocket expenses.

What the Numbers Show

The debt-equity ratio increased to 0.61 from 0.22 in the previous year, reflecting additional borrowings taken to support business expansion and working capital requirements. This leverage increase coincides with the near-doubling of revenue, indicating a strategic push to scale operations despite tighter banking norms in the EPC sector.

Raunaq International reported a significant turnaround in its profitability metrics for the first quarter of FY27, posting a net loss despite robust revenue growth. The company’s total income from operations rose to ₹1,098.28 lakh for the quarter ended June 30, 2026, marking a 31.6% increase from ₹1,013.42 lakh in the corresponding period of FY26. This top-line expansion contrasts sharply with the bottom-line performance, as the company swung to a net loss of ₹34.13 lakh after tax, compared to a net profit of ₹130.54 lakh in Q1FY26.

Financial Performance Overview

The divergence between revenue growth and net profitability highlights margin pressures during the quarter. While operating income increased by nearly ₹85 lakh year-on-year, the pre-tax position deteriorated significantly. Raunaq International recorded a pre-tax profit of ₹15.29 lakh in Q1FY27, a sharp decline from the ₹130.54 lakh pre-tax profit logged in Q1FY26. This represents an approximate 88% drop in pre-tax earnings despite the revenue uptick.

*Note: EPS for Q1FY26 is derived from the provided Hindi summary table which lists ₹0.64, but the English table lists ₹0.27 for Full Year. The Hindi table explicitly lists Q1FY26 EPS as ₹0.64? No, the Hindi table lists 'प्रति शेयर आय' as 0.64 for 30.06.2026? Wait, the Hindi table says 0.64 for 30.06.2026 and 0.67 for 31.03.2026. The English table says (1.02) for 30.06.2026 and (3.37) for 31.03.2026. There is a discrepancy. The English table is the primary source for 'Un-audited Financial Results'. The Hindi section appears to be a separate ad or incorrect data copy-paste in the source text (it lists Paramount Cables data mixed with Raunaq?). Let's stick strictly to the English 'STATEMENT OF UN-AUDITED FINANCIAL RESULTS' table for accuracy.

Correcting the table based on the primary English source:

Note: The source does not provide Q1FY26 EPS in the primary English table, only Full Year and Q4FY26 balancing figures. The Hindi table data is inconsistent with the English filing and likely erroneous or belongs to another entity in the mixed input. We omit Q1FY26 EPS to ensure data accuracy.

What the Numbers Show

The financial data reveals a severe compression in operating margins. Revenue grew by approximately 8.4% quarter-on-quarter (from ₹834.38 lakh in Q4FY26 to ₹1,098.28 lakh in Q1FY27), yet the company moved from a pre-tax loss of ₹114.26 lakh in Q4FY26 to a modest pre-tax profit of ₹15.29 lakh in Q1FY27. While this indicates an improvement in operational efficiency compared to the immediate preceding quarter, the year-on-year comparison shows that the cost structure has not scaled efficiently with revenue. The tax expense or other comprehensive income items contributed to the final net loss, as the pre-tax position was positive at ₹15.29 lakh, but the after-tax result was negative at ₹34.13 lakh, implying a significant tax provision or other comprehensive income adjustment not detailed in the extract.

Corporate Governance and Approval

The unaudited financial results for the quarter ended June 30, 2026, were reviewed and recommended by the Audit Committee and approved by the Board of Directors in their meeting held on August 14, 2026. The company filed the intimation with the BSE Limited on August 17, 2026, citing a weekly off as the reason for the delay beyond the prescribed timeline under Regulation 30 & 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Neha Patwal, Company Secretary and CFO, signed off on the communication.