Sarthak Metals Limited reported a 25.3% year-on-year increase in net profit for the first quarter of FY27, rising to ₹132.92 lakh from ₹106.05 lakh in the corresponding period last year. Revenue from operations grew by 19.4% to ₹552.12 lakh, supported by higher sales volumes in its core business segment.

The company’s Board of Directors, meeting on August 13, 2026, approved the unaudited financial results along with the limited review report issued by its auditors, Begani & Begani. The board also ratified the cost audit report for the financial year 2025-26 and approved the reconstitution of its key statutory committees.

Financial Performance

The company’s top-line growth was accompanied by improved operational efficiency, although profit before tax saw a more modest gain of 32.4% to ₹207.27 lakh. The profit for the period was derived entirely from core operations, with no exceptional items recorded during the quarter.

Other income contributed ₹139.28 lakh to total income, up significantly from ₹62.12 lakh in the previous year’s quarter. This component accounted for approximately 2.5% of total income, indicating a stable contribution relative to operating revenues.

What the Numbers Show

A notable divergence exists between the growth rates of revenue and expenses. While revenue grew by 19.4%, total expenses increased by 20.4%. However, the composition of expenses shifted materially: cost of materials consumed dropped sharply to ₹99.30 lakh from ₹385.78 lakh in Q1FY26, while purchases of stock-in-trade rose to ₹456.58 lakh from nil. This suggests a change in inventory management or procurement strategy, where the company may be holding more finished goods or trading stock rather than consuming raw materials directly in the same proportion as the prior year. Despite the slight outperformance of expense growth over revenue growth, the absolute profit margin expanded due to the significant reduction in material consumption costs.

Balance Sheet Highlights

As of June 30, 2026, the company maintained a strong cash position with cash and cash equivalents totaling ₹532.92 lakh, down slightly from ₹568.54 lakh at the end of March 2026. Total assets stood at ₹1,359.51 lakh, a marginal decrease from ₹1,370.14 lakh in the preceding quarter. The company reported zero borrowings under both current and non-current liabilities, indicating a debt-free balance sheet structure for these categories.

Inventory levels decreased to ₹357.10 lakh from ₹392.43 lakh, aligning with the reported change in inventories of -₹6.53 lakh during the quarter. Other financial assets under non-current assets increased to ₹175.96 lakh from ₹145.56 lakh, reflecting potential investments or long-term receivables.

Corporate Governance Updates

Effective August 24, 2026, the company reconstituted its Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, and Corporate Social Responsibility Committee. Mr. Dwadas Venkata Giri serves as Chairperson of these committees, alongside members Mr. Sunil Dutt Bhatt and Mrs. Ushasree Bhagavatula, who is designated as an Additional Independent Women Director.

The financial statements were prepared in accordance with Ind AS 34 ‘Interim Financial Reporting’ and reviewed by Begani & Begani, Chartered Accountants. The firm issued a limited review report stating that nothing came to their attention to suggest the statements did not disclose all required information or contained material misstatements.

Sarthak Metals Limited has fixed Tuesday, August 11, 2026, as the record date to determine shareholder eligibility for voting at its 31st Annual General Meeting (AGM). The company announced that only members whose names appear in the Register of Members as of the cut-off date will be entitled to vote. The AGM is scheduled to be held on Tuesday, August 18, 2026, at 12:30 P.M. (IST) at Hotel Ashish International in Bhilai, Chhattisgarh.

In compliance with Section 108 of the Companies Act, 2013, and Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has provided a remote e-voting facility. Shareholders may cast their votes electronically prior to the meeting or via ballot paper during the AGM. The e-voting facility will be available from 9.00 a.m. (IST) on Saturday, August 15, 2026, until 5.00 p.m. (IST) on Monday, August 17, 2026.

The company has engaged Bigshare Services Private Limited to facilitate the e-voting process. Members who acquire shares after the notice is sent but hold them on the record date may obtain their login ID and password by requesting ivote@bigshareonline.com , copying cs@sarthakmetals.com . The remote e-voting module will be disabled immediately after the closing time on August 17.

Sarthak Metals has dispatched the Notice of the AGM along with the Annual Report 2025-26 electronically to members with registered email addresses. Physical letters containing the URL link to the Annual Report are being sent to members without registered email addresses. The documents are also available on the company’s website, the BSE, and the NSE. For queries regarding e-voting, members may contact Mr. Nithin Nair, Client Service Executive, Bigshare Services Pvt Ltd, at 1800 22 54 22.

Key Event Details

Shareholders holding shares in demat form are requested to update their email addresses with their Depository Participant, while those holding physical shares should update details with the Registrar and Transfer Agent.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE017W01010/35f4c15cb90f4edd.pdf