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.

Shree Securities Limited has announced the resignation of its statutory auditor, M/s. R. K. Kankaria & Co., effective August 10, 2026. The firm, which served as the company’s statutory auditor since September 30, 2023, cited preoccupation as the primary reason for stepping down. The resignation follows an advance intimation letter dated June 20, 2026, and a formal resignation letter submitted on August 10, 2026, by Shreyansh Kothari, Partner at R. K. Kankaria & Co.

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company notified BSE Limited and The Calcutta Stock Exchange Limited on August 11, 2026. In compliance with SEBI Circular CIR/CFD/CMD1/114/2019 dated October 18, 2019, the auditors completed the limited review of the quarterly results for the quarter ended June 30, 2026, signing the report on August 10, 2026, before tendering their resignation.

Auditor Transition Details

M/s. R. K. Kankaria & Co., Chartered Accountants (Firm Registration No. 321093E), had been scheduled to hold office until September 30, 2028. The firm’s address is listed as 12B, Russel Street, 7th Floor, Kolkata-700 071. The resignation process involved no reported concerns or disputes between the auditor and the company’s management or Audit Committee.

Regulatory Compliance and Reporting

The company confirmed that there were no instances where information requested by the auditor was not provided. Consequently, there were no management-imposed limitations or circumstances beyond management’s control that affected the audit evidence. The auditors also confirmed that no alternative procedures under SA 705 (Revised) were required due to lack of information.

In their declaration, Shreyansh Kothari affirmed that the information provided in the resignation letter is correct and complete, with no other material reasons for the resignation. The company is now expected to appoint a new statutory auditor in accordance with applicable regulations to ensure continuity in financial reporting oversight.