Riyaasat Lifestyle Limited filed its annual report for FY26 and issued the notice for its fifth Annual General Meeting (AGM). The ethnic wear company reported a 34.55% year-on-year increase in revenue from operations to ₹3,337.46 lakh, driven by expanded retail presence and operational scale.

The Board of Directors approved the financial statements and governance documents on September 5, 2026. The 5th AGM is scheduled for September 29, 2026, at 11:30 am via video conferencing or other audio-visual means. Shareholders holding shares as on the cut-off date of September 22, 2026, are eligible to vote.

Financial Performance

Revenue from operations grew from ₹2,480.46 lakh in FY25 to ₹3,337.46 lakh in FY26. Profit before tax increased to ₹627.01 lakh from ₹587.69 lakh in the previous year. Net profit after tax stood at ₹519.41 lakh, up from ₹478.24 lakh in FY25. EBITDA improved to approximately ₹572.42 lakh from ₹512.17 lakh in FY25.

Balance Sheet and Capital Structure

The company’s total assets increased significantly to ₹8,060.06 lakh from ₹3,391.25 lakh in FY25. Long-term borrowings rose to ₹2,640.00 lakh from ₹210.72 lakh, reflecting capital expenditure on property, plant, and equipment, which grew to ₹3,188.52 lakh from ₹29.27 lakh. Inventories also expanded to ₹4,104.62 lakh from ₹2,140.27 lakh.

Subsequent to the financial year-end, Riyaasat Lifestyle raised ₹3,019.73 lakh through an Initial Public Offering (IPO) completed on July 1, 2026. The paid-up share capital increased from ₹7,89,56,780 to ₹10,74,44,780 following the allotment of 28,48,800 equity shares.

Corporate Governance and AGM Agenda

The AGM agenda includes the reappointment of Mrs. Sobhanaben Ramanbhai Galiya as a director upon retirement by rotation. Additionally, shareholders will vote on the appointment of M/s Nirav Shah & Associates as Secretarial Auditor for five consecutive years, from April 1, 2026, to March 31, 2031, pursuant to Regulation 24A of the SEBI Listing Regulations.

The board noted no changes in the nature of business during FY26. No dividend was proposed for the financial year ended March 31, 2026, as resources were preserved for planned business growth and expansion activities.

What the Numbers Show

While revenue growth of 34.55% outpaced profit growth of 6.73%, this divergence reflects significant upfront investments in infrastructure and inventory. Capital expenditure surged to over ₹3,188 lakh, primarily for new retail spaces, indicating a strategic shift towards physical expansion that will likely impact near-term margins before yielding long-term returns.

Riyaasat Lifestyle has initiated a postal ballot process to seek shareholder approval for varying the utilisation of its Initial Public Offering (IPO) proceeds. The company aims to reallocate ₹712.98 lakh originally earmarked for new showrooms in Surat and Mumbai towards expanding its existing Mumbai presence and setting up a new store in Ahmedabad.

The board of directors approved the proposal during a meeting held on September 1, 2026, in Ahmedabad. The decision was communicated to BSE Limited pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice was published in the Financial Express on September 2, 2026.

Variation Details

The company raised a total of ₹3,019.73 lakh through its IPO, as per the prospectus dated June 29, 2026. As of the disclosure date, ₹1,680.37 lakh had been utilised, leaving an unutilised balance of ₹1,339.36 lakh. The proposed variation affects only the capital expenditure component for setting up four new stores.

The deviation arises from changes in commercial feasibility and lease agreements for two of the four proposed locations.

Reasons for Variation

The reallocation is driven by specific developments at the proposed Mumbai and Surat locations:

• Surat: The lease agreement for the proposed showroom at Athwalines was cancelled by the owner, Gokul Space Developers Private Limited, on July 15, 2026. Consequently, the ₹189.70 lakh earmarked for this location will be redirected to set up a new showroom at Sigma Commerce Zone, Satellite, Ahmedabad.
• Mumbai: Instead of opening a new store at Kalaghoda, the company plans to utilise the ₹523.28 lakh allocation to expand its existing showroom at Santacruz (West). This includes acquiring additional premises (Basement, 3rd Floor, and 4th Floor) via an e-auction under the SARFAESI Act, facilitated by Religare Finvest Limited.

Funds allocated for Hyderabad (₹323.04 lakh) and Bengaluru (₹319.01 lakh) remain unchanged.

Postal Ballot Process

Shareholders holding equity shares as on the cut-off date of August 28, 2026, are eligible to vote. The remote e-voting period commences on September 2, 2026, at 9:00 am and ends on October 1, 2026, at 5:00 pm. NSDL will facilitate the e-voting process.

M/s. Nirav Shah & Associates, Practicing Company Secretary, has been appointed as the scrutinizer for the exercise. The results will be declared within two working days after the closure of voting.

What the Numbers Show

The unutilised IPO proceeds stand at ₹1,339.36 lakh, representing approximately 44% of the total funds raised. The proposed variation ensures that the capital originally intended for expansion is not stranded due to lease cancellations but is instead redirected to consolidate operations in Mumbai and enter the Ahmedabad market, maintaining the company's retail growth trajectory without altering the overall business strategy.