Shree Securities Limited has filed its revised 33rd Annual Report for FY26, proposing a significant reduction and consolidation of its share capital to eliminate accumulated losses. The company aims to reduce its paid-up equity share capital by 98%, cancelling ₹78.2 crore of capital to set off against accumulated losses of ₹86.7 crore as of June 30, 2026.

The restructuring plan requires shareholder approval at the upcoming Annual General Meeting (AGM) scheduled for September 29, 2026. Following the reduction, the remaining capital will be consolidated, increasing the face value of each share from Re. 1 to ₹10. The move is designed to present a cleaner balance sheet and restore eligibility for raising fresh capital.

Capital Reduction Scheme

The proposed scheme involves reducing the existing paid-up equity share capital from ₹79.8 crore (79.8 crore shares of Re. 1 each) to ₹1.59 crore (1.59 crore shares of Re. 1 each). This reduction will extinguish ₹78.2 crore of accumulated losses. Subsequently, the post-reduction capital will be consolidated into 15.96 lakh shares of ₹10 each.

The scheme does not involve any cash outflow or payout to shareholders. The proportionate shareholding pattern will remain unchanged. The effective date for the reduction will be upon confirmation by the National Company Law Tribunal (NCLT).

Financial Performance FY26

Shree Securities reported a net profit of ₹6.17 lakh for FY26, a sharp decline from ₹65.72 lakh in FY25. Revenue from operations rose 9.4% to ₹74.53 lakh from ₹68.08 lakh in the previous year. The drop in profitability was driven by higher expenses, including finance costs of ₹14.38 lakh compared to nil in FY25.

The company's total assets increased to ₹18.27 crore from ₹10.30 crore in FY25, largely due to a rise in loans outstanding to ₹15.80 crore from ₹9.08 crore. Borrowings also surged to ₹7.42 crore from nil in the prior year.

Governance and Auditor Changes

The board appointed Mr. Udayan S Kachchhy as an Additional Non-Executive Independent Director effective September 4, 2026, pending shareholder approval at the AGM. He brings expertise in accountancy and education management.

M/s. Sunit M Chhatbar & Co., Chartered Accountants, was recommended for appointment as Statutory Auditors for five years from FY27 to FY31. This follows the resignation of M/s. R. K. Kankaria & Co., which served as auditors until August 10, 2026. The secretarial audit report highlighted several compliance delays, resulting in fines imposed by BSE for late submission of investor complaints, corporate governance reports, and financial results.

Key Resolutions

Shareholders will vote on several special resolutions at the AGM:

• Approval of the reduction and consolidation of share capital.
• Increase in the foreign portfolio investor (FPI) limit to 49% of paid-up equity share capital.
• Authorization for the board to advance loans and provide guarantees under Section 185 and 186 of the Companies Act, 2013, up to ₹100 crore.
• Appointment of Mr. Udayan S Kachchhy as an Independent Director for five years.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE397C01026/d53483be-43e8-4f4f-a09d-497e556f946f.pdf

Shree Securities Limited reported a widened net loss of ₹2,739.14 lakh for the first quarter of FY27 (Q1FY27), ending June 30, 2026. The deterioration in profitability was driven by exceptional items, which offset an operating profit of ₹5.86 lakh. Despite the loss, the company’s revenue from operations surged to ₹66.7 lakh, up from ₹15.82 lakh in the same quarter last year.

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on August 10, 2026. The figures were prepared in accordance with Companies (Indian Accounting Standard) Rule, 2015, and Regulation 33 and Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Statutory Auditors carried out a limited review of the financial results for the quarter.

Financial Performance

The company’s operational performance showed improvement in top-line growth, but the bottom line remained under pressure due to non-operating factors. Total revenue from operations increased significantly compared to both the previous quarter and the corresponding period last year.

Revenue from operations stood at ₹66.7 lakh in Q1FY27, compared to ₹26.65 lakh in Q4FY26 and ₹15.82 lakh in Q1FY26. This represents a substantial year-on-year increase in operational activity.

What the Numbers Show

A critical divergence exists between the company’s operational performance and its reported net loss. On an operating basis—before tax and exceptional items—Shree Securities posted a profit of ₹5.86 lakh, marking a turnaround from the ₹25.22 lakh loss recorded in the preceding quarter (Q4FY26).

However, exceptional items resulted in a massive drag on the final bottom line, leading to a net loss of ₹2,739.14 lakh after tax. This indicates that while core business operations improved, non-recurring or one-time costs severely impacted overall profitability for the period. The earnings per share (basic and diluted) stood at -₹0.34, reflecting the heavy loss burden on equity shareholders.

Equity share capital remained unchanged at ₹7,980 lakh during the quarter. The company did not declare any dividend for the period.