Shivalik Bimetal Controls Limited has disclosed the resignation of M/s Arora Gupta & Co., Chartered Accountants (FRN: 021313C), as statutory auditors for two of its wholly-owned subsidiaries. The Board of Directors noted the resignations in a meeting held on August 06, 2026, with the changes taking effect immediately. This development requires the company to appoint new statutory auditors to ensure continuous compliance with regulatory standards for its subsidiary operations.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular no. SEBI/HO/CFD/CFDPoD1/P/CIR/2023/123 dated July 13, 2023. The affected entities are Shivalik Engineered Products Private Limited and Shivalik Bimetal Engineers Private Limited. Both firms had been appointed for five-year terms following shareholder resolutions passed in 2022.

Arora Gupta & Co. stated that the resignations stem from practical difficulties in deploying adequate audit resources commensurate with the expanded requirements. Since becoming wholly-owned subsidiaries of the listed parent, both entities have witnessed significant growth in operational scale and complexity. This enlargement has triggered broader applicability of accounting standards and listed-company regulations, substantially increasing the scope, volume, and resource demands for statutory audits.

The firm confirmed that it completed the statutory audits for standalone financial statements up to March 31, 2026, and limited reviews for the quarter ended June 30, 2026, prior to stepping down. In its resignation letters, the auditor explicitly denied any disagreement with management or the Board of Directors. Furthermore, the firm asserted that it had not identified any fraud, suspected fraud, material irregularity, or other matters requiring disclosure to shareholders or regulators under the Companies Act, 2013 or SEBI Listing Regulations.

What the Numbers Show

The timing of the resignation coincides with the completion of the FY26 audit cycle, suggesting a strategic exit point rather than a mid-term disruption. However, the cited reason—resource constraints due to expanded compliance scope—highlights the operational burden placed on smaller audit firms when their clients become part of larger listed groups. For Shivalik Bimetal Controls, this necessitates a swift appointment process to avoid gaps in statutory oversight for its key manufacturing subsidiaries.

The company secretary, Aarti Sahni (M. No.: A25690), submitted the intimation to both BSE Limited and National Stock Exchange of India Ltd. on August 06, 2026. The filing included Annexure-A detailing the resignation particulars and Annexure-B containing the original resignation letters from Amit Arora, Partner at Arora Gupta & Co. (Membership No.: 514828).

Shivalik Bimetal Controls Limited reported a 44% year-on-year increase in consolidated net profit to ₹330.07 lakh for the quarter ended June 30, 2026 (Q1FY27), driven by a 33% rise in revenue from operations. The Board of Directors, meeting on August 06, 2026, approved these unaudited standalone and consolidated financial results and declared a final dividend for the financial year 2025-26, with August 26, 2026, fixed as the record date. EBITDA for the quarter stood at 432M rupees versus 320M rupees in the year-ago period, with the EBITDA margin improving to 23.74% from 23.4% year-on-year. This performance underscores the company's robust operational momentum early in the fiscal year.

The Board also addressed significant governance changes, accepting the resignation of M/s. Arora Gupta & Co. Chartered Accountants as Statutory Auditors due to resource constraints amid the company's operational growth. Consequently, M/s. Walker Chandiok & Co LLP was appointed as Statutory Auditor to fill the casual vacancy effective August 07, 2026, with a proposal for a five-year term subject to shareholder approval at the upcoming Annual General Meeting (AGM). Additionally, Mr. Kabir Ghumman, Managing Director, offered himself for re-appointment under retire-by-rotation provisions.

Financial Performance Highlights

The company's consolidated revenue from operations climbed to ₹1,821.96 lakh in Q1FY27, up from ₹1,365.97 lakh in the corresponding quarter of the previous year. Standalone revenue grew to ₹1,318.08 lakh from ₹1,166.95 lakh. The profit before tax on a consolidated basis stood at ₹438.35 lakh, compared to ₹303.86 lakh in Q1FY26. Earnings per share (basic and diluted) increased to ₹5.73 from ₹3.96 in the prior year's quarter.

The following table summarises key consolidated and standalone performance metrics for the quarter:

Key operational metrics for the consolidated business are presented below:

An exceptional item of ₹25.75 lakh was recorded in both standalone and consolidated statements, representing funds received under the Pradhan Mantri Viksit Bharat Rozgar Yojna (PM-VBRY) for the period August 1, 2025, to March 31, 2026.

Governance and Auditor Changes

M/s. Arora Gupta & Co., which served as Statutory Auditor since September 2022, resigned citing an inability to deploy adequate resources commensurate with the expanded audit requirements due to the company's scale and complexity growth. They confirmed no disagreements with management or Board regarding accounting policies or internal controls. M/s. Walker Chandiok & Co LLP, a firm established in 1935 with 98 partners, will serve as Statutory Auditor until the ensuing AGM. The Board also re-appointed Mr. Ramawatar Sunar as Cost Auditor for FY2026-27 and appointed M/s. Malik S. & Co. as Tax Auditors.

What the Numbers Show

The divergence between standalone and consolidated growth metrics highlights the contribution of group entities. While standalone revenue grew by nearly 13%, consolidated revenue surged over 33%, indicating that subsidiaries and joint ventures are driving disproportionate top-line expansion. The share of profit from the joint venture, Innovative Clad Solutions Private Limited, rose sharply to ₹227.31 lakh from ₹55.79 lakh in the previous year, significantly boosting overall profitability despite modest standalone margin expansion. The improvement in EBITDA margin to 23.74% from 23.4% year-on-year further reflects strengthening operational efficiency at the consolidated level.

Forward-Looking Events

Shivalik Bimetal Controls will host an earnings conference call on Friday, August 07, 2026, at 3:00 PM IST, hosted by Dickenson World via Zoom Webinar. The 42nd Annual General Meeting is scheduled for Wednesday, September 02, 2026, at 10:30 AM via video conferencing. Shareholders must hold shares as of the record date, August 26, 2026, to be eligible for the final dividend.