Sunita Tools Limited has delivered samples, prototypes, and approved test reports for NATO Specification and Standard 155mm M107 Artillery Shells to its customer under an Interim Sales Agreement. The company also announced that its US subsidiary, Sunita Defence Inc, has secured a new order worth USD 97,632, while its legacy business has started the financial year with a healthy order book.

NATO-Grade Artillery Shell Milestone

The company has successfully delivered the required samples and prototype units of the 155mm M107 Artillery Shells, which conform to NATO Specifications and Standards. Alongside the physical samples and prototypes, Sunita Tools has also submitted various approved test reports to the customer, fulfilling the documentation and quality verification requirements under the Interim Sales Agreement. The samples were ready for some time, but delivery was delayed due to disturbances in shipping channels. The agreement will be converted to a Sales Agreement from an Interim Sales Agreement following the clearance of the prototype batch.

US Subsidiary and Business Developments

Sunita Defence Inc, a 100% subsidiary where Sunita Tools Limited holds a majority stake, received an order of USD 97,632 from a reputed Supply Chain Company in the USA. Additionally, the subsidiary has been approved as a vendor by Southern States Cooperative, a Richmond, Virginia-based farm supply and service cooperative founded in 1923. This cooperative serves over 300,000 farmer-members through 1,200 retail outlets. The company anticipates this approval will sizably increase its order book from July onwards.

Operational Outlook

The legacy business of Sunita Tools Limited has commenced the financial year well and maintains a very healthy order book for June and July. The company is currently evaluating proposals from leading professional services firms to initiate a comprehensive organizational due diligence review. Commenting on the developments, Mr. Sanjay Pandey, Chairman & Whole Time Director, stated that the samples were delivered on time and met specified quality standards, the USA acquisition is performing as expected, and the legacy business is growing according to expectations.

Sunita Tools Limited reported a 27.8% rise in net profit to ₹650.66 lakh for the financial year ended March 31, 2026, compared to ₹509.12 lakh in the previous year. Revenue from operations surged 56.8% to ₹4,644.23 lakh from ₹2,962.12 lakh in FY25. The company’s board approved the revised audited standalone and consolidated financial results for FY26 on June 04, 2026, following the rectification of clerical and typographical errors identified in the initial submission.

The audit was conducted by K M A & Co., Chartered Accountants, which issued an unmodified opinion on the financial results. The report confirms that the results present a true and fair view in conformity with the recognition and measurement principles laid down in applicable accounting standards. The financial statements were prepared in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Standalone Financial Performance

For the year ended March 31, 2026, total revenue stood at ₹4,708.60 lakh, a significant increase from ₹3,014.83 lakh in the prior year. Total expenses for the period rose to ₹3,885.76 lakh from ₹2,332.90 lakh. Profit before tax for the year was ₹822.85 lakh, compared to ₹681.93 lakh in FY25. The basic and diluted earnings per share (EPS) for the year increased to ₹10.53 from ₹8.53 in the previous year.

Consolidated Results

On a consolidated basis, the company reported a net profit of ₹618.91 lakh for FY26, up from ₹512.52 lakh in the previous year. Revenue from operations for the consolidated entity increased to ₹4,730.57 lakh from ₹3,008.30 lakh. The net profit attributable to equity shareholders of the parent company stood at ₹633.20 lakh for the year ended March 31, 2026.

Capital Allocation and Assets

During the year, the company allotted 1,23,076 and 47,385 equity shares upon conversion of warrants on October 20, 2025, and October 30, 2025, respectively. The company received ₹415.50 lakh, representing 75% of the issue price, and utilized the entire net proceeds towards capital assets. As of March 31, 2026, the company’s cash and cash equivalents stood at ₹1,738.81 lakh on a standalone basis.