Shah Construction Company Limited has filed its Annual Report for the financial year 2025-26 with BSE Limited, reporting a net loss of ₹175.36 lakh, an improvement from the ₹269.07 lakh loss recorded in the previous fiscal year. The company’s 78th Annual General Meeting is scheduled for October 30, 2026, at 3:30 pm via video conferencing.

The filing includes the audited financial statements for the year ended March 31, 2026. Key agenda items for the upcoming AGM include the adoption of financial statements, re-appointment of directors, and the appointment of statutory auditors. Remote e-voting facilities will be available from October 27 to October 29, 2026, with October 23, 2026, fixed as the cut-off date for eligibility.

Financial Performance and Balance Sheet

The company’s total income rose to ₹771.73 lakh in FY26 from ₹613.87 lakh in FY25. Revenue from operations increased significantly to ₹524.39 lakh, driven by display, venue, and leasing income. Despite the revenue growth, the company remained in the red due to high finance costs and other expenses. Employee benefits expense also saw a sharp rise, increasing to ₹107.72 lakh in FY26 from ₹70.58 lakh in FY25.

What the Numbers Show

A critical divergence exists between operational growth and debt servicing capacity. While revenue from operations grew by over 41%, finance costs remained the largest expense head at ₹534.79 lakh, exceeding total operating revenue. This indicates that interest obligations are consuming more than 100% of core business income, leaving other income and cost controls as the primary levers for narrowing the net loss. Additionally, the company’s negative equity position of ₹9,568.44 lakh highlights significant balance sheet stress, despite management’s assertion of going concern status based on immovable property valuations. The cash flow statement reveals that while operating activities consumed ₹272.38 lakh, financing activities generated a net inflow of ₹506.87 lakh, primarily through borrowings from related parties, which increased to ₹6,880.01 lakh.

Governance and Compliance Updates

The Board recommended the re-appointment of Mr. Sanjay Damji Shah as Director, who retires by rotation. Mr. Hitesh Popatlal Sangoi is proposed for re-appointment as Non-Executive Independent Director for a second five-year term. M/s. Mittal & Associates, Chartered Accountants, are recommended for re-appointment as Statutory Auditors for a second term until 2031.

The Secretarial Audit Report noted several non-compliances, including delays in board meeting intimations and non-submission of shareholder complaint statements. The report also highlighted that the company failed to appoint a Managing Director or CEO following the cessation of Mr. Mehul Jadavji Shah's term, as his re-appointment was not approved by shareholders in September 2025. The company faces a demand of ₹35.19 crore from the Collector regarding land use change charges, with partial payments made and properties attached as part of recovery actions.

Shah Construction Company Ltd has closed its trading window for dealing in equity shares, effective from October 1, 2026. The closure remains in force until 48 hours after the declaration of the company's un-audited financial results for the quarter and half year ended on September 30, 2026.

Regulatory Compliance and Scope

The decision was taken pursuant to the SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended, and the company's Code of Internal Procedures and Conduct for Regulating, Monitoring and Reporting Trading in its securities. The restriction applies to all Designated Persons and their immediate relatives.

Filing Details

The notice was submitted to the Corporate Relationship Department of BSE Limited on September 28, 2026. The filing was signed by Apeksha Jenil Shah, Company Secretary and Compliance Officer, confirming that the trading window closure is to be taken on record by the exchange.