Shareholders of Sagar Systech Limited unanimously approved the company’s financial statements for FY26 and re-elected Mukesh Babu as a director during its 42nd Annual General Meeting (AGM) held on August 12, 2026. The meeting, convened in Mumbai, also reviewed the reports of the Board of Directors and the independent auditors for the fiscal year ended March 31, 2026.

The AGM was chaired by Mukesh Babu, Chairman and Director, who provided an overview of the company’s performance before opening the floor for shareholder queries. Mrs. Meena Babu, Managing Director; Mr. Mehul Patel, Independent Director; Mr. Kalpesh Damor, Chief Financial Officer; and Ms. Prachi Sahu, Company Secretary, were present. Independent Director Vijay Vora was absent due to prior commitments.

Voting and Attendance

A total of 20 shareholders attended the meeting, comprising two promoters and 18 public shareholders. The attendance breakdown was as follows:

The company facilitated remote e-voting from August 8 to August 11, 2026, managed by MUFG Intime India Private Limited. Physical voting was arranged for shareholders who had not cast votes electronically, in compliance with Secretarial Standard SS-2.

Resolutions Passed

Two ordinary resolutions were moved and passed unanimously:

• Adoption of the annual audited financial statements and the reports of the Board of Directors and Auditors for the financial year ended March 31, 2026.
• Re-appointment of Mukesh Champaklal Babu (DIN: 00224300) as a director, who retires by rotation and offered himself for re-election.

Ms. Prachi Sahu informed members that the auditors’ report did not contain any qualifications, observations, or comments with adverse effects on the company’s functioning. Documents including the register of directors’ shareholdings and contracts involving directors were available for inspection at the venue.

CS V. V. Chakradeo served as the scrutinizer for the voting process. The final e-voting results and the combined scrutinizer’s report are expected to be uploaded to the company’s website and stock exchanges within 48 hours of the meeting’s conclusion.

Sagar Systech Limited reported a net loss of ₹29.79 lakh for the first quarter of FY27 (Q1FY27), ending June 30, 2026, marking a significant deterioration from the ₹3.64 lakh net profit recorded in the corresponding period of FY26. The widening loss was primarily driven by income from operations turning negative at ₹14.43 lakh, compared to ₹15.91 lakh in Q1FY25, while total expenses increased to ₹15.79 lakh from ₹13.06 lakh year-on-year.

The results were reviewed by independent auditors Shah, Shah & Shah pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board of Directors approved the unaudited standalone financial results on August 5, 2026. The financial statements were prepared in accordance with Indian Accounting Standard 34 (Ind AS-34) as prescribed under Section 133 of the Companies Act, 2013.

Financial Performance Highlights

The company’s operational performance weakened considerably in the current quarter. Income from operations fell sharply into negative territory, reflecting challenges in core business activities. While other income also declined to ₹0.34 lakh from ₹0.80 lakh in the previous year, the primary drag came from the reversal in operating income. On the expense front, employee costs rose to ₹8.19 lakh from ₹5.52 lakh, and finance expenses remained elevated at ₹5.18 lakh.

For the full fiscal year ended March 31, 2026 (FY26), the company reported a net profit of ₹0.95 lakh on total income of ₹59.95 lakh. In contrast, the year-to-date comprehensive income for FY26 stood at a loss of ₹128.43 lakh, heavily influenced by other comprehensive income items.

What the Numbers Show

A critical divergence exists between the company’s bottom-line profit and its total comprehensive income for Q1FY27. While the net loss widened to ₹29.79 lakh, total comprehensive income after taxes registered a positive figure of ₹46.80 lakh. This positive outcome is entirely attributable to other comprehensive income (OCI), which surged to ₹76.59 lakh in the quarter, compared to a loss of ₹26.47 lakh in Q1FY26. This suggests that non-operating valuation changes or reserve adjustments are currently offsetting operational losses, masking the underlying profitability pressure in the core business segments.