Sheshadri Industries reported a net profit of ₹72.73 lakh for the quarter ended June 30, 2026, marking a significant turnaround from the net loss of ₹1.27 crore recorded in the same period of the previous fiscal year. The positive bottom line was primarily driven by a ₹34.64 lakh gain from exceptional items—specifically the sale of used equipment—and improved operational efficiency that kept expenses below total income of ₹701.51 lakh. This result is particularly notable given the company’s accumulated losses of ₹1,633.95 lakh and a balance sheet where current liabilities exceed current assets, prompting the financial statements to be prepared on a going concern basis.

The Board of Directors approved the unaudited standalone financial results during a meeting held on August 10, 2026, at the company’s registered office in Secunderabad. The proceedings were conducted in compliance with Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In addition to approving the financials and the Directors' Report for FY26, the Board re-appointed Jeetender Kumar Agarwal (DIN: 00041946) as Managing Director.

Financial Performance Highlights

Total expenses for the quarter amounted to ₹663.42 lakh, down from ₹805.33 lakh in the preceding quarter. Key expense components included purchase of stock-in-trade at ₹375.51 lakh and finance costs of ₹58.80 lakh. Depreciation and amortization remained stable at ₹36.78 lakh. The profit before exceptional items and tax stood at ₹38.09 lakh. In contrast, the same quarter last year saw a negative impact of ₹2.25 crore from exceptional items, which had dragged the company into a net loss position despite similar operational margins.

What the Numbers Show

The shift from a net loss to a net profit is largely driven by the absence of the large exceptional loss recorded in Q1FY26 and modest operational cost control. While revenue from operations declined slightly to ₹577.56 lakh from ₹634.46 lakh year-on-year, the company managed to keep total expenses lower than total income. However, investors should note that the company continues to operate with substantial accumulated losses exceeding ₹1,600 lakh. The financial health remains fragile, with current liabilities exceeding current assets, necessitating the going concern disclosure based on the market value of immovable properties.

Auditor’s Qualified Conclusion

K.S. Rao & Co., the statutory auditors, issued a qualified conclusion on the interim financial results. The qualification arises because no provision has been made in the books of account for interest payable on outstanding unpaid statutory dues of Tax Deducted at Source (TDS). The total amount involved is ₹32.78 lakh, including arrears of ₹31.23 lakh up to March 31, 2026. Apart from this matter, the auditors stated that nothing came to their attention to suggest that the statement does not disclose the information required under SEBI regulations or contains any material misstatement. The review was conducted in accordance with Standard on Review Engagements (SRE) 2410.

Sheshadri Industries Limited disclosed that promoter Jeetender Kumar Agarwal increased his stake to 65.19% through an off-market acquisition of shares on June 25, 2026. The transaction involved the purchase of 2,37,981 equity shares, representing 4.80% of the total voting capital, from Westend Developers Limited. This move strengthens the promoter's control over the entity following the disposal of shares by the public shareholder.

Prior to the transaction, Agarwal held 60.39% of the shares, amounting to 29,95,162 equity shares. Westend Developers Limited held 2,37,981 shares, which constituted 4.80% of the share capital before the sale. The acquisition was executed in compliance with Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The disclosure confirms that Westend Developers Limited does not belong to the promoter or promoter group.

Following the transaction, the total equity share capital and total voting capital of Sheshadri Industries Limited remain unchanged at Rs. 4,95,95,770, divided into 49,59,577 equity shares of Rs.10 each. There were no changes to the encumbered shares or other instruments such as warrants and convertible securities. The mode of acquisition was off-market.

The table below details the changes in shareholding for both the promoter and the seller:

The company submitted the necessary documentation to the stock exchange on June 26, 2026. Rozie Mukharjee, Company Secretary and Compliance Officer for Sheshadri Industries Limited, signed the disclosure on behalf of the company. Anand Gupta, Director of Westend Developers Limited, authorized the disclosure regarding the disposal of shares.