Shangar Decor FY26 Results: Net profit up 82% to ₹147.46 lakh
- Net profit rose 82% YoY to ₹147.46 lakh for FY26
- Revenue from operations increased 25% to ₹2,326.07 lakh
- Depreciation expense more than doubled to ₹320.24 lakh
- Auditors raised concerns over unverified trade receivables
- No dividend declared for the financial year
*this image is generated using AI for illustrative purposes only.
Shangar Decor posted a net profit of ₹147.46 lakh for the financial year ended March 31, 2026, marking an 82% increase from the previous year's ₹80.90 lakh. Revenue from operations grew 25% year-on-year to ₹2,326.07 lakh.
The company's 31st Annual General Meeting is scheduled for September 30, 2026. While operational metrics improved, the statutory auditors issued a qualified opinion on internal financial controls and raised concerns regarding the verification of trade receivables and payables.
Financial Performance
The company demonstrated strong top-line growth alongside improved profitability margins. Depreciation expenses more than doubled, reflecting the capitalization of new assets during the period.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue from Operations | ₹2,326.07 lakh | ₹1,858.45 lakh | +25% |
| Total Expenses | ₹2,118.31 lakh | ₹1,731.41 lakh | +22% |
| Profit Before Tax | ₹208.34 lakh | ₹127.54 lakh | +63% |
| Net Profit | ₹147.46 lakh | ₹80.90 lakh | +82% |
| EPS (Basic) | ₹0.03 | ₹0.02 | N/A |
What the Numbers Show
Depreciation charges surged to ₹320.24 lakh from ₹137.79 lakh in the prior year, driven by a near-doubling of Property, Plant, and Equipment (PPE) net block to ₹3,700.44 lakh. This indicates significant recent capital expenditure that has yet to fully translate into proportional revenue generation, though it supports the 25% top-line growth. Other income remained negligible at ₹0.57 lakh, confirming that the profit expansion was purely operational rather than driven by one-off gains.
Auditor Qualifications and Governance
Statutory auditors S K Bhavsar & Co highlighted material weaknesses in internal financial controls, specifically citing inadequate documentation of policies and IT controls. The auditors also noted they could not verify the existence and recoverability of certain trade receivables and payables due to missing balance confirmation letters.
Additionally, the secretarial audit report flagged non-compliance with SEBI regulations regarding the appointment of independent directors and internal auditors earlier in the fiscal year, though the company stated these were rectified by April 2026. No dividend was recommended for FY26.
Historical Stock Returns for Shangar Decor
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.00% | -4.00% | 0.0% | -7.69% | -36.84% | -76.47% |
How will the material weaknesses in internal financial controls and IT policies impact Shangar Decor's ability to secure future debt financing or attract institutional investors?
Given the near-doubling of PPE net block, what is the expected timeline for these new capital expenditures to drive proportional revenue growth beyond the current 25% increase?
What specific measures is management implementing to resolve the verification issues regarding trade receivables and payables, and how might this affect future working capital management?
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