Rhetan TMT Limited reported a net profit of ₹3.16 crore for the quarter ended June 30, 2026, up from ₹0.76 crore in the corresponding period of the previous year. While revenue from operations declined to ₹4.06 crore from ₹5.04 crore year-ago, the bottom-line expansion was primarily driven by a surge in other income and favorable inventory adjustments.

The company’s board of directors approved the unaudited financial results on August 12, 2026. Alongside the financials, the board authorized the enhancement of production capacity at its manufacturing facility in Kadi, Gujarat, from 45,000 metric tonnes per annum to 75,000 metric tonnes per annum. The company will initiate procurement for requisite plant and machinery to implement this expansion.

Financial Performance

Revenue from operations stood at ₹4.06 crore for Q1FY26, down from ₹5.04 crore in Q1FY25. However, total income increased to ₹8.52 crore from ₹5.71 crore, largely due to other income rising to ₹4.45 crore from ₹0.68 crore in the prior year quarter.

Total expenses decreased to ₹5.21 crore from ₹4.95 crore in the previous year quarter. Cost of materials consumed rose to ₹4.75 crore from ₹3.66 crore, reflecting operational inputs. However, this was offset by a decrease in inventories of finished goods, work-in-progress, and stock-in-trade, which contributed ₹0.98 crore to income, compared to ₹1.16 crore in the prior year quarter. Finance costs remained stable at ₹0.33 crore.

What the Numbers Show

The divergence between operating revenue and net profit highlights a heavy reliance on non-operating items for current profitability. Other income constituted approximately 52% of the total income for the quarter, up from roughly 12% in the same period last year. This shift indicates that the reported profit growth is not solely derived from core manufacturing operations but is significantly bolstered by external or incidental gains.

Corporate Actions

In addition to the capacity expansion, the board approved several key corporate actions:

• Borrowing Limits: Enhanced borrowing limits from ₹200 crore to ₹300 crore under Section 180(1)(c) of the Companies Act, 2013, subject to member approval at the ensuing Annual General Meeting (AGM).
• Loans and Investments: Increased limits for loans, investments, and guarantees from ₹200 crore to ₹300 crore under Section 186 of the Companies Act, 2013, also pending AGM approval.
• Management Re-appointment: Recommended the re-appointment of Shalin Ashok Shah as Managing Director for five years, effective January 8, 2027, subject to shareholder approval.
• Auditor Appointment: Approved the re-appointment of GMCA & Co., Chartered Accountants, as statutory auditors for a second term of five years.
• Board Composition: Appointed Jhanvi Vikas Sethi as an Additional Independent Director effective August 12, 2026. The Audit, Nomination & Remuneration, and Stakeholders Relationship Committees were reconstituted with Rushabh Shah as Chairperson.

The company’s 42nd AGM is scheduled for September 16, 2026, to be held via video conferencing. The board also approved shifting its registered office within Ahmedabad, Gujarat.

Rhetan TMT Limited has accepted the resignation of Mrs. Deepti Ghanshyam Gavali as an Independent Director, effective August 07, 2026. The company disclosed the change in board composition to the Bombay Stock Exchange and National Stock Exchange on the same day, citing personal reasons for her departure. This leadership change reduces the number of independent directors on the Board, potentially impacting committee compositions until a successor is appointed.

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Shalin Ashok Shah, Managing Director and DIN holder 00297447, signed the intimation letter confirming receipt of the resignation dated August 07, 2026.

Resignation Details

Mrs. Deepti Ghanshyam Gavali (DIN: 10272798) tendered her resignation from the office of Independent Director due to personal reasons. In her resignation letter addressed to the Board of Directors, she requested that all formalities regarding her exit be completed, including filings with the Ministry of Corporate Affairs.

Regulatory Compliance

The company confirmed that there are no other material reasons for the resignation beyond those stated in the letter. As per Clause 7B of Para A of Part A of Schedule III of the Listing Regulations, Mrs. Gavali provided a confirmation that no additional material factors influenced her decision to step down. The resignation letter was enclosed as Annexure II to the regulatory filing.

Board Composition Impact

The departure of an independent director requires the company to ensure continued compliance with SEBI’s listing requirements regarding the proportion of independent directors on the Board. While the source document does not specify the current total strength of the Board or the timeline for appointing a replacement, such vacancies are typically filled through nomination and remuneration committee recommendations followed by shareholder approval or board appointment depending on the urgency and existing composition.