Sonal Adhesives reported a 14.6% year-on-year increase in total revenue for FY26, reaching ₹12,827.5 lakh, while net profit declined 22.3% to ₹137.2 lakh. The company has scheduled its 35th Annual General Meeting for September 24, 2026.

The Khopoli-based adhesive manufacturer saw significant growth in export turnover, which more than doubled to ₹3,396.6 lakh from ₹1,657.1 lakh in the previous fiscal year. However, rising raw material prices and increased finance costs pressured operating margins.

Financial Performance

Total income from operations stood at ₹12,644.4 lakh compared to ₹11,033.3 lakh in FY25. Other income contributed ₹183.1 lakh, primarily driven by exchange fluctuation gains of ₹158.4 lakh.

Profit before interest and tax fell to ₹166.1 lakh from ₹242.5 lakh, impacted by an exceptional item of ₹17.1 lakh related to past service costs for gratuity. Finance costs rose 25.7% to ₹162.3 lakh, reflecting higher borrowing levels.

What the Numbers Show

Export revenue accounted for approximately 26.9% of total operating revenue in FY26, up from 15% in the prior year. This shift highlights the company's growing reliance on international markets to offset domestic margin pressures. Despite the revenue growth, the net profit margin contracted to 1.08% from 1.60%, indicating that cost inflation outpaced pricing power during the period.

Balance Sheet Signals

Borrowings increased significantly, with total debt rising to ₹2,177.7 lakh from ₹1,110.6 lakh. This led to a debt-equity ratio expansion to 1.98 from 1.12. The company raised cash credit limits and took over a term loan facility to meet working capital requirements. Cash and cash equivalents remained modest at ₹9.4 lakh.

Corporate Actions

The Board recommends the re-appointment of Mr. Sandeep Arora as Managing Director for three years, effective June 1, 2026, with a remuneration of ₹3 lakh per month. No dividend was recommended for the year to conserve reserves. The share transfer books will remain closed from September 21 to September 23, 2026.

Sonal Adhesives reported a net loss of ₹2.42 lakh for the quarter ended June 30, 2026, marking a significant contraction from the ₹5.90 lakh loss posted in the previous quarter (March 31, 2026). The company’s total income for the period stood at ₹5.38 lakh, driven primarily by operational revenue of ₹5.00 lakh and other income of ₹0.38 lakh. No comparative figures were provided for the corresponding quarter of the previous fiscal year (Q1FY25).

The Board of Directors approved the unaudited financial results during a meeting held on August 11, 2026. The results have been reviewed by the Audit Committee and prepared in accordance with Indian Accounting Standards (Ind AS) under Section 133 of the Companies Act, 2013.

Financial Performance

Sonal Adhesives operates in a single business segment focused on consultancy and advisory services. The company has no subsidiaries, associates, or joint ventures, making consolidated financial results inapplicable.

Earnings per share (basic and diluted) stood at (₹0.02) for the quarter, compared to (₹0.04) in the preceding quarter. The paid-up equity share capital remained constant at ₹1,428.78 lakh.

What the Numbers Show

The primary operational driver for Sonal Adhesives remains consultancy and advisory services, as disclosed in the filing notes. With total income limited to ₹5.38 lakh against a net loss of ₹2.42 lakh, the company continues to operate at a loss, though the magnitude of the deficit has decreased substantially from the prior quarter. The absence of data for the corresponding period last year prevents a year-on-year growth assessment, but the quarter-on-quarter improvement suggests a stabilization in cost structures or revenue generation relative to Q4FY26.