The Board of Directors of Shekhawati Industries approved the unaudited standalone financial results for the quarter ended June 30, 2026, on August 12, 2026. The company reported a net profit of ₹636.75 lakh, compared to ₹281.42 lakh in the corresponding quarter of FY25. Earnings per share (basic and diluted) stood at ₹1.85, up from ₹0.82 in Q1FY25.

Total income for the quarter was ₹975.44 lakh, driven largely by other income of ₹822.38 lakh. This figure includes a write-back of liabilities no longer payable amounting to ₹735.47 lakh and fair value gains on equity shares and mutual funds of ₹40.47 lakh. In contrast, revenue from operations fell 49% year-on-year to ₹153.06 lakh, down from ₹300.35 lakh in Q1FY25.

Financial Performance

Revenue from operations consisted of ₹152.13 lakh from product sales and ₹0.93 lakh from other operating revenue. Job work income, which contributed ₹655.85 lakh in Q4FY26, was nil in the current quarter. Service income, recorded at ₹300.00 lakh in Q1FY25, was also absent in Q1FY27.

Total expenses rose to ₹323.00 lakh from ₹142.43 lakh in the previous year’s quarter. This increase was attributed to construction materials consumed, which stood at ₹731.18 lakh, partly offset by a reduction in inventory of construction materials of the same value. Cost of materials consumed was ₹146.82 lakh. Finance costs increased to ₹10.48 lakh from ₹0.74 lakh in Q1FY25.

Segment-wise Results

The textile operations segment reported operating revenue of ₹153.06 lakh, down from ₹300.35 lakh in Q1FY25. The segment incurred an operating loss of ₹67.09 lakh, compared to a profit of ₹176.75 lakh in the same period last year. Real estate operations reported no revenue or results for the quarter.

Segment assets for real estate operations grew to ₹2,323.67 lakh from ₹976.81 lakh in Q1FY25, reflecting ongoing development activities. Textile operations assets decreased slightly to ₹486.56 lakh from ₹517.74 lakh at the end of FY26. Total assets as of June 30, 2026, stood at ₹3,792.61 lakh.

What the Numbers Show

Other income accounted for 84% of total income in Q1FY27, highlighting a significant divergence between operational performance and bottom-line results. While revenue from operations contracted nearly by half, the write-back of liabilities and fair value gains drove the substantial profit growth. This indicates that the current quarter’s profitability was non-operational in nature, driven by balance sheet adjustments rather than core business activities.

The company incurred tax expense of ₹15.68 lakh towards taxation of earlier years. There were no exceptional items or deferred tax provisions in the quarter. The statutory auditors, SGCO & Co. LLP, issued a limited review report on the financial results.

Shekhawati Industries Limited accepted the resignation of Independent Director Sushil Kumar Poddar effective June 22, 2026, due to personal considerations. The board has reconstituted all its committees following the change in composition. Poddar cited difficulties in discharging his duties effectively as the reason for his departure.

The Board of Directors and management expressed their appreciation for Poddar's contributions during his tenure. Consequently, the board has updated the structure of its committees to reflect the cessation of the director.

Poddar ceased to be the chairman of four key committees: the Audit Committee, Stakeholder Relationship Committee, Nomination and Remuneration Committee, and Corporate Social Responsibility Committee. The company disclosed these details in a filing submitted to the exchanges.

The resignation was submitted pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The director confirmed there were no material reasons for his resignation other than the personal considerations stated.

Details of Cessation

Board Committee Updates