Sellowrap Industries reported an 8% rise in net profit to ₹891.53 lakh for the financial year ended March 31, 2026, compared to ₹825.74 lakh in the previous year. Revenue from operations increased 23.6% to ₹20,081.65 lakh from ₹16,245.01 lakh in FY25. The company's Board approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, in a meeting held on May 25, 2026. Following the results, the company's management participated in a virtual investor interaction on June 1, 2026, to discuss the business overview, operational performance, and growth strategy.

Financial Performance

For the quarter ended March 31, 2026, the company recorded a profit of ₹157.76 lakh, a decline from ₹240.75 lakh in the same period of the previous year. Revenue for the quarter stood at ₹6,791.39 lakh. Total expenses for the year rose to ₹18,916.24 lakh from ₹15,219.79 lakh in the prior year. Earnings per share (EPS) for the year stood at ₹6.49, down from ₹8.18 in FY25.

Consolidated Results

On a consolidated basis, net profit for FY26 increased to ₹1,012.79 lakh from ₹961.16 lakh in the previous year. Revenue from operations for the year was ₹20,081.65 lakh. The consolidated results include the financials of associate company Sellowrap EPP India Pvt Limited. The statutory auditors, M/s. V. B. Jain & Co, issued an unmodified opinion on the standalone and consolidated financial results.

H2FY26 Performance

While Sellowrap maintained robust top-line growth in H2FY26—driven by strong automotive OEM demand—profitability faced transient pressures from geopolitical supply disruptions, evolving domestic labor regulations, and surging input costs. The management noted that US-Israel airstrikes on Iran on February 28, 2026, caused Strait of Hormuz traffic to fall approximately 70% within hours, triggering energy price shocks and shipping chaos. Natural gas supply disruptions directly impacted the production of plastics, rubber, and chemical compounds critical to auto components. Additionally, the INR depreciated from ₹85.53 to ₹94.71 between March 2025 and March 2026, a 10% fall that directly inflated import-linked input costs. Polymer prices in India rose due to supply disruptions and rising feedstock costs.

Corrective Measures

To counter raw material and forex inflation, Sellowrap successfully initiated price revisions with key automotive OEMs to pass through accelerated input costs. The company is investing in process automation to reduce reliance on the contractual workforce. Targeted hiring of experienced, multi-skilled operators is underway to raise output per head and reduce defect rates. A cross-functional cost review has also been initiated, targeting procurement, logistics, and overheads.

IPO Proceeds Utilization

The company confirmed there was no deviation in the utilization of proceeds from its Initial Public Offer (IPO), which raised ₹30.27 crore. The total net proceeds of the fresh issue amounted to ₹2,598.37 lakh. As of March 31, 2026, unutilized IPO proceeds totaling ₹1,239.85 lakh were temporarily invested in fixed deposits with HDFC Bank pending deployment. The funds were allocated for capital expenditure, working capital, and general corporate purposes.

Balance Sheet Highlights

The company's total assets stood at ₹17,556.56 lakh as of March 31, 2026, up from ₹13,568.58 lakh a year ago. Shareholders' equity increased to ₹8,127.88 lakh from ₹4,604.88 lakh. Non-current investments rose significantly to ₹2,425.12 lakh from ₹1,081.19 lakh. The trading window, which was closed from April 1, 2026, will reopen on May 27, 2026.

Sellowrap Industries Limited announced the resignation of Mr. Vishal Srivastava from the position of General Manager (Operational) Plant Head, effective from the close of business hours on June 11, 2026. The resignation, attributed to personal reasons, was approved and noted by the Board of Directors during its meeting held on May 25, 2026. The disclosure was made to the National Stock Exchange of India Ltd. in compliance with Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

The company confirmed that Mr. Srivastava will be relieved on the specified date, ensuring proper handover of responsibilities. The regulatory filing included an annexure detailing the event, specifying the reason for the change and the effective date of cessation. The appointment details and profile were marked as not applicable in the disclosure document.

Details of Resignation

The resignation follows a communication from Mr. Srivastava regarding his inability to continue due to family urgency. The company has processed the resignation in accordance with its policy and the notice period served by the employee.