Shweta Jain & Co LLP has tendered its resignation from the position of statutory auditor for Pulsar International , effective August 17, 2026. The chartered accountancy firm stated that the decision stems from professional and practical challenges, including a shortage of staff and difficulties in securing requisite information from the company in a timely manner.

The audit assignment for the financial year 2025-26 was undertaken after Shweta Jain & Co LLP was appointed to fill a casual vacancy in the office of the statutory auditor. According to the resignation letter, the firm issued the audit report for the financial year ended March 31, 2026, and the limited review report for the quarter ended June 30, 2026, prior to stepping down.

Reasons for Resignation

The firm outlined two primary factors contributing to its decision to resign:

• Appointment pursuant to casual vacancy: The late appointment made it difficult to complete the audit process within required timelines given the circumstances and time available.
• Resource and Information Constraints: The firm cited a shortage of professional staff, which limited its ability to deploy adequate resources. Additionally, it reported practical difficulties in obtaining records, explanations, and access to relevant data from the company, leading to delays in finalizing the audit report.

Shweta Jain & Co LLP explicitly confirmed that the resignation is not on account of any dispute, disagreement, or professional misconduct on the part of the company or its management. Instead, it attributed the exit solely to professional resource constraints and the practical challenges associated with the timely completion of the audit assignment.

Regulatory Compliance

The firm requested that Pulsar International complete all necessary statutory and regulatory formalities arising from the resignation. This includes filing prescribed forms with the Registrar of Companies and making necessary disclosures where applicable. The resignation letter serves as formal notification to the Board of Directors, ensuring the company can appoint a new auditor to comply with statutory timelines without further delay.

Pulsar International reported a net loss of ₹7.3 lakh for the quarter ended June 30, 2026, compared to a net profit of ₹40.4 lakh in the same period of FY25. The company’s revenue from operations fell sharply by 68% year-on-year to ₹23.0 crore, down from ₹75.0 crore in Q1FY25.

The Board of Directors approved the standalone unaudited financial results during its meeting held on August 14, 2026. This date followed a postponement from the originally scheduled August 10 meeting. The Statutory Auditors, Shweta Jain & Co LLP, issued a limited review report on the interim financial results.

Financial Performance

Total revenue stood at ₹23.1 crore for the quarter, significantly lower than the ₹74.0 crore recorded in Q1FY25. Total expenses were ₹23.2 crore, resulting in a pre-tax loss of ₹7.3 lakh. In the previous year’s quarter, total revenue was ₹75.0 crore against expenses of ₹70.9 crore, yielding a pre-tax profit of ₹40.4 lakh.

Revenue from operations in Q1FY27 was ₹2299.5 lakh, compared to ₹749.7 lakh in Q1FY25. However, total expenses rose to ₹2319.5 lakh from ₹709.3 lakh in the prior year period. Key expense drivers included purchases of stock-in-trade at ₹1172.0 lakh and changes in inventories amounting to ₹1116.3 lakh. Depreciation and amortisation expenses were ₹16.7 lakh, while employee benefits cost ₹1.2 lakh.

What the Numbers Show

The shift from profit to loss was driven by a significant increase in inventory-related costs despite lower operational revenue. Changes in inventories of finished goods, work-in-progress, and stock-in-trade accounted for ₹1116.3 lakh of the total expenses in Q1FY27, whereas this figure was zero in Q1FY25. This suggests a buildup in inventory levels that has not yet translated into sales revenue, impacting the bottom line. Meanwhile, other income contributed ₹12.8 lakh in the current quarter, compared to nil in the previous year.

The company’s paid-up equity share capital remains at ₹4283.4 lakh. Basic earnings per share were flat at ₹0.00, compared to ₹0.06 in Q1FY25. The trading window for insiders remains closed until 48 hours after the public release of these results.