Sonal Adhesives Limited reported a significant contraction in profitability for the first quarter of FY27, with net profit falling nearly 50% year-on-year. The Khopoli-based adhesive manufacturer posted a net profit of ₹22.89 lakh for the quarter ended June 30, 2026, compared to ₹44.75 lakh in the corresponding period of FY26. Revenue from operations also slipped 3% to ₹2,752.30 lakh, down from ₹2,828.75 lakh a year ago.

The decline in earnings was primarily driven by an increase in cost of materials consumed, which rose to ₹2,251.79 lakh from ₹2,602.13 lakh in Q1FY26, though this figure appears lower in absolute terms due to the revenue drop. However, the margin pressure is evident when comparing expenses against income; total expenses stood at ₹2,735.99 lakh, leaving a slim profit before tax of ₹25.80 lakh. In contrast, the company had reported a profit before tax of ₹56.11 lakh in Q1FY25.

Financial Performance Overview

The financial results, reviewed by statutory auditors Haziyani & Associates, highlight a challenging operating environment. While other income dropped significantly to ₹9.50 lakh from ₹21.35 lakh a year ago, finance costs increased to ₹35.70 lakh from ₹24.82 lakh. Depreciation and amortisation expenses remained relatively stable at ₹33.53 lakh.

What the Numbers Show

A critical observation from the filing is the disproportionate impact of non-operational factors on the bottom line. Other income, which includes interest and miscellaneous gains, fell by more than half to ₹9.50 lakh. Given that the profit before tax is only ₹25.80 lakh, the contribution of other income constitutes approximately 37% of the pre-tax profit. This high dependency on non-core income streams suggests that core operational margins remain thin and vulnerable to fluctuations in interest rates or one-off gains.

Furthermore, the year-to-date performance for FY26 (ended March 31, 2026) shows a total revenue of ₹12,644.41 lakh and a net profit of ₹137.17 lakh. The sharp quarter-on-quarter decline in revenue from ₹3,423.41 lakh in Q4FY26 to ₹2,752.30 lakh in Q1FY27 indicates a potential seasonal slowdown or reduced demand in the immediate post-fiscal period.

Corporate Actions and Appointments

During the same board meeting held on August 12, 2026, the company announced several key administrative appointments for the upcoming fiscal year:

• Secretarial Auditor: The Board appointed CS Prashant Diwan (FCS: 1403) as the Secretarial Auditor for FY27. He brings 43 years of professional experience in corporate compliance and statutory matters.
• Cost Auditor: M/s. S K Agarwal & Associates (FRN: 100322) was appointed as the Cost Auditor for FY27. Their remuneration will be placed before shareholders for ratification at the Annual General Meeting.

AGM Details

The company scheduled its 35th Annual General Meeting for September 24, 2026, to be conducted via video conference. The e-voting period will run from September 21 to September 23, 2026. Shareholders holding shares as on September 18, 2026, will be eligible to vote. The register of members will remain closed from September 18 to September 24, 2026, inclusive.

Sonal Adhesives Ltd has transmitted 4,75,400 equity shares to the legal heirs of Ms. Kamal Arora following her demise. The shares were transferred to Mr. Sandeep M. Arora, Ms. Megha M. Arora, and Ms. Mona M. Arora on June 20, 2026. The aggregate shareholding of the promoter and promoter group remains unchanged at 11.54% of the total share capital, as the transmission falls under the exemption provided by Regulation 10(1)(g) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The company submitted the disclosure to BSE Limited on June 23, 2026, under Regulation 10(6) of the SEBI SAST Regulations. The equity share capital of Sonal Adhesives Ltd stands at ₹ 6,06,10,000, comprising 60,61,000 equity shares of ₹ 10 each. Mr. Sandeep M. Arora, the Managing Director, acquired 3,30,031 shares, while Ms. Megha M. Arora and Ms. Mona M. Arora received 63,269 and 82,100 shares respectively.

The transmission altered the individual holdings within the promoter group. Ms. Megha M. Arora's previous holding of 1,42,000 shares increased to 2,05,269 shares, while Ms. Mona M. Arora's holding rose from 82,000 shares to 1,64,100 shares. Mr. Sandeep M. Arora, who previously held no shares, now holds 5.45% of the total share capital.

The updated shareholding pattern for the acquirers is detailed below:

The transferor, Ms. Kamal Arora, held 4,75,400 shares, representing 7.84% of the total share capital prior to the transmission. The company stated that the updated disclosures ensure compliance with regulatory requirements and provide accurate information to the shareholders.