Saffron Industries board of directors approved the audited financial statements for the fiscal year ended March 31, 2026, along with the Directors' Report. The approval was finalized during a meeting held on August 20, 2026, at the company's registered office.

The board also approved the notice for the company's 33rd Annual General Meeting (AGM). The meeting is scheduled to take place on September 24, 2026, at 11:00 am at Nava-Bharat Bhawan, Chatrapati Square, Wardha Road, Nagpur.

Key Agenda Items

The AGM will transact the following business:

• Consider and adopt the audited financial statements for FY26, including the reports of the Auditors and the Board of Directors.
• Appoint a director in place of Mr. Manoj Rameshwar Sinha (DIN: 07564967), who retires by rotation and offers himself for reappointment.

Share Transfer Book Closure

The Register of Members and Share Transfer Books will remain closed from September 17, 2026, to September 24, 2026, both days inclusive. This closure period coincides with the record date for determining shareholder eligibility for the AGM.

The board meeting commenced at 3:35 pm and concluded at 4:00 pm on August 20, 2026. The disclosures were made in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Saffron Industries Ltd reported a standalone net profit of ₹12.058 lakh for the quarter ended June 30, 2026 (Q1FY27), marking a turnaround from a net loss of ₹9.204 lakh in the corresponding quarter of FY25. The company’s total revenue from operations stood at ₹105.884 lakh, a sharp decline of 65.8% compared to ₹309.556 lakh in Q1FY25. This performance reflects the continued dominance of its Construction & Real Estate Development segment, which generated ₹105.864 lakh in revenue, while the Paper Manufacturing segment recorded zero operational income for the third consecutive quarter.

The Board of Directors, chaired by Whole Time Director Manoj Sinha, approved the unaudited financial results at a meeting held on July 29, 2026, in Nagpur. The results were reviewed by the Audit Committee and subjected to a limited review by Jagdish Khatri & Associates, the statutory auditors, in accordance with Standard on Review Engagement (SRE) 2400. The filing was submitted to the Bombay Stock Exchange pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Segment Performance

The company’s financial health remains bifurcated between its two primary business units. The Construction & Real Estate Development segment delivered a pre-tax profit of ₹11.264 lakh, contributing positively to the bottom line despite a significant drop in revenue from ₹309.556 lakh in Q1FY25. In contrast, the Paper Manufacturing segment continues to struggle, reporting only ₹0.794 lakh in other income against zero operational revenue. While this represents a minor improvement over the ₹194.005 lakh loss incurred in the same period last year, the segment remains non-operational in terms of core sales.

Note: Paper Manufacturing profit derived entirely from other income; operational revenue is zero.

Balance Sheet and Cash Flow

As of June 30, 2026, Saffron Industries reported total assets of ₹1,227.354 lakh, an increase from ₹1,197.317 lakh at the end of FY26. Current assets rose to ₹1,166.672 lakh, driven by an increase in inventories to ₹720.314 lakh and other current assets to ₹212.503 lakh. However, the company maintains negative equity of ₹807.269 lakh, reflecting accumulated losses that outweigh its equity share capital of ₹718.520 lakh. Total liabilities stood at ₹2,034.623 lakh, with current liabilities comprising ₹1,839.071 lakh, including trade payables of ₹655.419 lakh.

Cash flow from operating activities improved to ₹13.236 lakh in Q1FY27, up from negative cash flows in prior periods. This improvement was largely due to a decrease in receivables of ₹10.249 lakh and an increase in trade payables of ₹61.506 lakh, which offset the cash outflow from increased inventories. Investing activities generated ₹0.794 lakh primarily from interest income, while financing activities remained neutral with no new borrowings or repayments.

What the Numbers Show

The most critical observation from Q1FY27 is the complete decoupling of the Paper Manufacturing segment from operational revenue generation. While the segment’s loss has narrowed dramatically due to the absence of high depreciation charges (which were ₹194.800 lakh in Q1FY25 but only ₹0.024 lakh in Q1FY27), it contributes nothing to top-line growth. The company’s profitability is now entirely dependent on the Real Estate segment, which is itself facing a steep revenue contraction. With negative equity persisting and inventory levels rising, management faces the challenge of converting stock into sales to improve liquidity without further diluting margins.