Solvex Edibles Limited reported a standalone net loss of ₹12.57 lakh for the financial year ended March 31, 2026, a significant decline from the net profit of ₹283.86 lakh recorded in the previous year. The company's board approved the audited standalone and consolidated financial results for FY26 on May 30, 2026. Revenue from operations for the year decreased to ₹6,667.48 lakh from ₹7,470.61 lakh in FY25, while total expenses stood at ₹6,624.68 lakh.

Auditor's Qualified Opinion

Arora Gupta & Co., the statutory auditor, issued a qualified opinion on the financial results. The report highlighted that the company raised IPO funds aggregating ₹830.99 lakh for plant and machinery, of which ₹306.00 lakh was released as an advance. The auditors observed that ₹140.00 lakh of this advance was paid to a supplier in March 2026, which was simultaneously received back from the same party by a subsidiary, Golden Pearl Oil Products LLP, and reflected as a liability. The related plant and machinery had not been received by the audit date. Additionally, ₹590 lakh of IPO proceeds used to repay borrowings was subsequently redrawn for general business purposes, raising concerns about compliance with issue objects and regulatory requirements.

The auditors also noted that the company did not recognize employee benefit obligations for gratuity and leave encashment as required by Accounting Standard (AS) 15. Due to the absence of actuarial valuation, the liability could not be determined, leading to an understatement of profit and liabilities. Furthermore, the company did not recognize interest payable to Micro and Small Enterprises, a non-compliance with the Micro, Small and Medium Enterprises Development Act, 2006, and Accounting Standard (AS) 29.

Financial Performance

The standalone financial statements show a basic and diluted loss per share of ₹0.16 for FY26, compared to earnings per share of ₹4.36 in the previous year. The company's cash and bank balances increased significantly to ₹586.62 lakh as of March 31, 2026, from ₹9.29 lakh in the prior year, primarily driven by IPO proceeds. Shareholders' funds rose to ₹3,632.33 lakh, supported by an increase in share capital to ₹895.20 lakh and reserves and surplus to ₹2,737.13 lakh.

On a consolidated basis, the group reported a net profit of ₹7.10 lakh for FY26, down from ₹408.97 lakh in the previous year. Consolidated revenue from operations stood at ₹15,425.62 lakh. The auditors flagged non-payment of income tax liabilities across the group aggregating ₹333.37 lakh, comprising dues from the holding company and its subsidiaries, Shree Oils and Fats (I) Private Limited and Golden Pearl Oil Products LLP.

Fund Utilization

The company stated that total IPO proceeds of ₹1,886.98 lakh were raised between September 22, 2025, and September 26, 2025. As of March 31, 2026, the company reported utilizing ₹1,303.61 lakh, with ₹583.37 lakh remaining unutilized. The utilization included ₹306.00 lakh for capital expenditure, ₹590.00 lakh for repayment of borrowings, and ₹278.99 lakh for general corporate purposes. The company submitted a statement confirming no deviation or variation in the utilization of funds, although the auditor's report contradicted this assessment regarding the end-use of specific amounts.

Solvex Edibles Limited has announced that its board of directors will meet on May 30, 2026, to discuss and approve the company's financial performance for the fiscal year ending March 31, 2026. The meeting is scheduled to take place at 3:00 p.m. at the company's registered office in Uttar Pradesh, with provisions for directors to participate via video conferencing.

Agenda Highlights

The primary focus of the meeting is the consideration and approval of the audited standalone and consolidated financial results for the financial year 2025-26. Alongside the results, the board will review the accompanying audit reports. The directors authorized to sign and file these documents with the stock exchanges include Managing Director Ashish Goel, Whole-time Director Vishal Goel, Chief Financial Officer Jaideep Singh, and Company Secretary Swati Vaish.

IPO Fund Utilization

Another critical item on the agenda is the review and approval of the Audit Committee's recommendation regarding the utilization of funds raised through the company's Initial Public Offering (IPO). The board will consider a certificate issued by the statutory auditors dated March 31, 2026, detailing the deployment of these proceeds.

The table below outlines the allocation and utilization of IPO funds as per the prospectus:

Other Business

The board will also consider and approve related party transactions (RPTs) based on the Audit Committee's recommendations. Routine items such as granting leave of absence, confirming quorum, and noting minutes from previous meetings are included in the agenda. The meeting will conclude with a vote of thanks.