Seemax Resources net profit falls 26% in FY26 as revenue declines
Seemax Resources net profit fell 26% to ₹174.88 lakh in FY26 as revenue declined to ₹1,374.41 lakh. Finance costs rose to ₹167.36 lakh, but other income surged to ₹125.17 lakh. The board approved the audited results on July 27, 2026.
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Seemax Resources Limited reported a net profit of ₹174.88 lakh for the fiscal year ended March 31, 2026 (FY26), a 26% decline from ₹235.56 lakh in FY25. The Vadodara-based company’s revenue from operations fell to ₹1,374.41 lakh from ₹1,441.86 lakh, while finance costs rose to ₹167.36 lakh from ₹118.58 lakh. Despite the operational headwinds, total income increased to ₹1,499.58 lakh, buoyed by a sharp rise in other income to ₹125.17 lakh from just ₹4.19 lakh in the previous year.
The Board of Directors approved the audited financial results on July 27, 2026, during a meeting at the company’s registered office in Gujarat. Statutory auditors Milind Nyati & Co. LLP issued an unmodified audit opinion on the standalone financial results. The company listed its equity shares on the SME Platform of the Bombay Stock Exchange on July 7, 2026, following an initial public offer (IPO) of 14,00,000 equity shares at a premium of ₹131 per share.
Financial Performance Overview
| Particulars | FY26 (₹ Lakh) | FY25 (₹ Lakh) |
|---|---|---|
| Revenue From Operations | 1,374.41 | 1,441.86 |
| Other Income | 125.17 | 4.19 |
| Total Income | 1,499.58 | 1,446.05 |
| Total Expenses | 1,257.42 | 1,129.64 |
| Profit Before Tax | 242.17 | 316.41 |
| Net Profit After Tax | 174.88 | 235.56 |
While revenue contracted, employee benefit expenses decreased to ₹599.84 lakh from ₹629.44 lakh. However, finance costs increased significantly, impacting the bottom line. Earnings per share (EPS) stood at ₹5.83 for FY26, down from ₹7.85 in FY25.
Balance Sheet and Cash Flow
Total assets stood at ₹2,300.23 lakh as of March 31, 2026, up from ₹1,846.25 lakh in the previous year. Shareholder funds increased to ₹747.12 lakh from ₹572.25 lakh. Non-current liabilities rose to ₹708.33 lakh, with long-term borrowings increasing to ₹580.70 lakh from ₹468.02 lakh. Current liabilities also grew to ₹844.78 lakh, primarily due to higher short-term borrowings of ₹647.05 lakh compared to ₹499.52 lakh last year.
Cash flow from operating activities generated ₹244.96 lakh in FY26, a decrease from ₹394.14 lakh in FY25. Investing activities consumed ₹407.78 lakh, mainly due to increases in short-term loans and advances and purchase of fixed assets. Financing activities provided ₹92.84 lakh, reflecting proceeds from long-term borrowings and increases in short-term borrowings. Cash and cash equivalents closed at ₹10.01 lakh, down significantly from ₹79.99 lakh at the end of FY25.
Related Party Transactions
The filing disclosed several related party transactions involving directors and entities linked to them:
- Amit Trivedi (Managing Director): Received remuneration of ₹4.80 lakh and reimbursement of expenses of ₹2.79 lakh. A loan given to him stood at ₹16.41 lakh.
- Seema Trivedi (Director): Received remuneration of ₹2.40 lakh. A loan given to her closed at ₹0.32 lakh.
- Sanjay Patil (CFO): Received remuneration of ₹6.47 lakh and expense reimbursements of ₹0.40 lakh.
- Seemax Industries (Partnership firm with director interest): The company gave a loan of ₹558.19 lakh, earning interest income of ₹59.82 lakh. Trade receivables from this entity stood at ₹134.07 lakh.
What the Numbers Show
The most notable divergence in Seemax Resources’ FY26 results is the decoupling of operational revenue from total income growth. While revenue from operations declined by approximately 4.7%, other income jumped nearly 30-fold to ₹125.17 lakh. This suggests that the company’s profitability in FY26 was heavily supported by non-operating gains rather than core business expansion. Additionally, the rise in finance costs alongside increasing debt levels indicates a higher leverage burden, which may pressure margins if interest rates remain elevated or if operating revenues do not recover.
What specific initiatives is Seemax Resources planning to implement to reverse the decline in core operational revenue and reduce its reliance on non-operating income?
How does the company intend to manage its rising debt burden, given that short-term borrowings increased significantly while cash and cash equivalents dropped to ₹10.01 lakh?
Will the recent IPO proceeds be utilized primarily for debt repayment to lower finance costs or for capital expenditure to drive future revenue growth?
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