Sarthak Industries holds 42nd AGM, reappoints whole-time director

Sarthak Industries Limited held its 42nd Annual General Meeting (AGM) on August 18, 2026, through video conference and other audio-visual means. The meeting, presided over by Whole-time Director Mr. Ajay Peshkar, saw the participation of 32 members. Shareholders approved the ordinary and special business items outlined in the notice dated July 20, 2026.

Key Resolutions Approved

The members passed resolutions regarding the adoption of financial statements and key appointments. The voting process utilized both remote e-voting and e-voting at the AGM, with M/s. Amit Preeti & Associates appointed as the scrutinizer to ensure a fair process.

Resolution Type	Description	Status
Ordinary	Adoption of financial statements for FY26	Passed
Ordinary	Re-appointment of Ms. Deepika Arora as director	Passed
Ordinary	Ratification of Cost Auditors' remuneration for FY27	Passed
Special	Re-appointment of Mr. Ajay Peshkar as Whole-time Director	Passed

Management Participation

The following directors and key managerial personnel attended the meeting from Indore:

Mr. Ajay Peshkar (Whole-time Director)
Mr. Shashikant Padgil (Independent Director)
Mrs. Ankita Hasmukhdas Sethi (Independent Director)
Ms. Deepika Arora (Non-Executive Director)
Mr. Nimishek Ved (Independent Director)

Ms. Riya Bhandari (Jain), Company Secretary & Compliance Officer, confirmed the presence of the requisite quorum. Invitees included Chief Financial Officer Mr. Om Prakash Mundra, Statutory Auditor Mr. Avinash Baxi of M/s. Ashok Khasgiwala & Co. LLP., and Secretarial Auditor Mr. Ajit Jain of M/s. Ajit Jain & Co.

Meeting Proceedings

Mr. Peshkar provided an overview of the company's operations and financial performance for FY25-26. He addressed questions raised by shareholders who had registered in advance. The meeting concluded at 1:18 pm after all business items were transacted in accordance with the Companies Act, 2013, and SEBI (LODR) Regulations, 2015.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+3.14%	-5.43%	+8.23%	-19.55%	-38.39%	-66.46%

Sarthak Industries reported a significant year-on-year expansion in top-line growth for the first quarter of FY26, with total revenue rising 39.7% to ₹8,250.33 lakh. The company’s Board of Directors approved the unaudited standalone financial results on August 13, 2026, following a limited review by statutory auditors Ashok Khasgiwala & Co. LLP.

Despite the robust revenue growth, net profit after tax contracted 54.8% to ₹51.32 lakh, down from ₹113.63 lakh in Q1FY25. The divergence between revenue performance and bottom-line results was largely influenced by a steep decline in other income, which fell to ₹18.71 lakh from ₹305.58 lakh in the preceding quarter (Q4FY25) and ₹15.15 lakh in the same quarter last year.

Segment Performance

The trading business remained the primary revenue driver, contributing ₹8,049.96 lakh to total sales, a 39.8% increase from ₹5,759.74 lakh in Q1FY25. This segment also generated the bulk of the operating profit, reporting a segment result of ₹144.96 lakh before tax and interest.

In contrast, the cylinders business recorded a segment loss of ₹4.56 lakh, widening from a loss of ₹7.95 lakh in Q4FY25 but deteriorating from a profit of ₹1.60 lakh in Q1FY25. Revenue from this segment grew moderately to ₹188.40 lakh from ₹138.04 lakh year-ago.

Segment	Revenue (₹ Lakh)	Segment Result (₹ Lakh)
Trading Business	8,049.96	144.96
Cylinders Business	188.40	(4.56)
Unallocated-Others	11.97	(13.71)
Total	8,250.33	126.69

What the Numbers Show

A critical observation from the filing is the heavy reliance on non-operating items for profitability in the prior year comparison. In Q1FY25, other income constituted a negligible portion of total revenue, but the current quarter’s other income of ₹18.71 lakh is significantly lower than the ₹305.58 lakh recorded in Q4FY25. This volatility in other income directly impacted the net profit margin, which contracted to 0.62% from 1.92% in Q1FY25. Additionally, finance costs increased to ₹56.89 lakh from ₹40.03 lakh year-ago, further pressuring the bottom line despite the rise in operating revenue.

Balance Sheet and Other Metrics

Total assets stood at ₹9,563.00 lakh as on June 30, 2026, down from ₹10,635.15 lakh at the end of FY25. Total liabilities decreased to ₹4,926.30 lakh from ₹6,068.27 lakh. Earnings per share (basic) were reported at ₹0.55, compared to ₹1.22 in the same quarter of the previous fiscal year.

The company noted that the government of India has consolidated multiple labour legislations into four New Labour Codes effective November 21, 2025. However, as the corresponding rules are yet to be notified, the company stated no material liability is envisaged at the reporting date.