SEL Manufacturing has accepted the resignation of Dharminder Pal from the position of Non-Executive Non-Independent Director, effective from the closure of business hours on August 07, 2026. The departure is due to personal reasons and results in Pal ceasing membership in the Audit Committee, Nomination and Remuneration Committee, and Risk Management Committee. He also steps down as Chairman of the Stakeholders Relationship Committee. This change alters the composition of the Board and its key oversight committees, though no immediate replacement has been announced.

The company disclosed the resignation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was submitted to the stock exchanges in compliance with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Naveen Arora, Whole-time Director of SEL Manufacturing, signed the regulatory filing on August 08, 2026.

Resignation Details

Committee Exits

Upon his exit from the Board, Dharminder Pal will no longer serve in any committee capacities. The specific roles he vacates include:

• Audit Committee
• Nomination and Remuneration Committee
• Risk Management Committee
• Stakeholders Relationship Committee (as Chairman)

The company stated that it wishes Pal continued success in his future endeavors. The Board has not yet announced a successor for the vacant director seat or the committee chairmanship.

SEL Manufacturing Company Limited reported a net loss of ₹4,199.50 lakhs for the quarter ended June 30, 2026 (Q1FY27), marking a slight deterioration from the ₹4,104.62 lakhs loss recorded in Q1FY26. Revenue from operations plummeted by 47.6% year-on-year to ₹301.09 lakhs, down from ₹575.07 lakhs in the corresponding period of the previous fiscal year. The financial results, approved by the Board on August 6, 2026, highlight severe operational constraints, with the company unable to fully utilize its manufacturing capacities due to ongoing liquidity stress.

The Board also approved the Board’s Report and Corporate Governance Report for FY26 and scheduled the 26th Annual General Meeting for September 30, 2026, to be held via Video Conferencing / Other Audio Visual Means. The unaudited financial results were reviewed by independent auditor Kamboj Malhotra & Associates, who issued a qualified opinion citing the absence of impairment testing for Property, Plant & Equipment and Capital Work in Progress as required under Ind AS 36.

Financial Performance Snapshot

Finance costs remained a significant burden at ₹1,940.89 lakhs for the quarter, while depreciation expenses stood at ₹2,076.61 lakhs. Other income declined sharply to ₹2.73 lakhs from ₹13.86 lakhs in the preceding quarter. The company incurred exceptional items amounting to ₹0.82 lakhs. Total comprehensive income for the period was a loss of ₹4,821.33 lakhs.

What the Numbers Show

The divergence between declining revenue and persistent high fixed costs underscores the structural challenges facing SEL Manufacturing. With major plants shut down for the majority of the period, the company relied heavily on job work activities to generate limited revenue. This operational deficit is exacerbated by an inability to infuse the stipulated working capital; under the approved resolution plan, the company was required to bring ₹6,500 lakhs but infused only ₹2,500 lakhs. Consequently, cumulative losses have reached ₹85,077 lakhs till date.

Material Uncertainties and Compliance Issues

The auditor highlighted a material uncertainty related to the company’s ability to continue as a going concern. Key issues include:

• Unpaid Dues: The company has defaulted on quarterly installments due from September 30, 2023, to June 30, 2026, amounting to ₹36,098.41 lakhs. Additionally, monthly interest and other charges due from July 2023 to June 2026, totaling ₹21,249.96 lakhs, remain unpaid.
• Legal Moratorium: An interim ex parte order dated August 16, 2023, by the National Company Law Tribunal (NCLT), Chandigarh Bench, grants a complete moratorium on payments to banks until the next hearing date.
• Listing Fees: Outstanding listing fees of ₹5.85 lakhs for FY26 and FY27 remain unpaid as of the approval date.
• Insolvency Risk: Shareholders had previously passed a resolution in October 2023 regarding the initiation of the Corporate Insolvency Resolution Process under Section 10 of the Insolvency and Bankruptcy Code, 2016, if necessary.

The company has filed applications before the NCLT concerning the non-declassification of the company from defaulter lists by banks and financial institutions, as mandated within 30 days of the resolution plan’s effective date.