Sar Auto Products reported a net profit of ₹37.11 crore for the quarter ended June 30, 2026, marking a 221.3% year-on-year increase from ₹11.55 crore in Q1FY26. The surge was primarily driven by revenue from operations, which more than doubled to ₹533.19 crore from ₹226.94 crore in the corresponding period last year, highlighting robust demand for its gears and transmission components.

The Board of Directors approved the unaudited financial results on August 3, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, J. A. Sheth & Associates, Chartered Accountants.

Financial Performance

While total income rose to ₹565.43 crore from ₹252.13 crore, total expenses increased to ₹528.33 crore from ₹240.58 crore. This expense rise was largely due to higher cost of materials consumed at ₹827.11 crore against ₹150.96 crore in Q1FY26. However, significant negative changes in inventories of finished goods and work-in-progress amounting to ₹(546.50) crore helped mitigate the impact of higher material costs on the bottom line.

Board Changes and Governance

Concurrently with the financial results, the Board noted the resignation of Vijay Narendrabhai Kalariya (DIN: 10454403) as an Independent Director effective August 3, 2026, citing personal reasons and pre-occupation. Mr. Kalariya confirmed no other material reasons for his resignation and stated he does not hold directorships in other listed companies.

On the recommendation of the Nomination and Remuneration Committee, the Board appointed Harsh Mukeshbhai Radiya (DIN: 11803235) as an Additional Director under the category of Non-Executive Independent Director. His appointment is effective from August 3, 2026, for a term of five consecutive years, subject to shareholder approval at the ensuing Annual General Meeting. Mr. Radiya holds an MBA in Finance from NMIMS, Mumbai, and is currently associated with a CA firm. He has no shareholding in the company and is not related to any promoters or key managerial personnel.

What the Numbers Show

The dramatic improvement in net profit is largely attributable to inventory adjustments rather than pure margin expansion. While revenue surged over 134% YoY, the reduction in inventory levels contributed significantly to lowering total expenses relative to income. Investors should monitor whether this profitability trend sustains without such large inventory write-downs in subsequent quarters. The company operates in a single segment focused on manufacturing gears, gearboxes, and other transmission components.

Corporate Actions

The Board also appointed Mr. Kalpesh P. Rachchh of K.P. Rachchh & Co. as the Secretarial Auditor for FY27 and as the Scrutinizer for the 39th Annual General Meeting. The notice for the AGM, along with the record date, will be intimated separately in due course.

Sar Auto Products has accepted the resignation of Vijay Narendrabhai Kalariya as an Independent Director, effective August 3, 2026. The Board of Directors approved the change during its meeting held on August 3, 2026, citing personal reasons and pre-occupation as the primary drivers for his exit. The company confirmed that there are no other material reasons for the resignation beyond those stated in the official letter.

The move follows a formal intimation submitted to BSE Ltd under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In his resignation letter dated July 25, 2026, Kalariya stated that he would be unable to discharge his duties due to these commitments. He further confirmed that he does not hold any directorship or serve as a chairperson or member of committees in any other listed companies, satisfying the regulatory requirements for independent directors.

Resignation Details

The Board expressed appreciation for Kalariya’s contributions during his tenure. Shreyas R. Virani, Whole Time Director of Sar Auto Products, signed the communication to the exchange, acknowledging the cessation of Kalariya’s role. The company noted that the resignation aligns with the guidelines outlined in the SEBI Master Circular dated January 30, 2026, and other relevant circulars governing director appointments and resignations.

Kalariya’s departure marks a change in the company’s board composition, though no immediate replacement was announced in the filing. The Board will likely address the vacancy in accordance with corporate governance norms and regulatory timelines for maintaining an adequate number of independent directors.