Sunraj Diamond Exports Limited held its 36th Annual General Meeting on September 30, 2026, through video conferencing. The meeting focused on the adoption of standalone and consolidated financial statements for the fiscal year ended March 31, 2026.

Key resolutions passed

Shareholders transacted two primary agenda items during the session:

1. Adoption of audited financial statements, including the balance sheet, profit and loss account, cash flow statement, and director and auditor reports for FY26.
2. Appointment of Mrs. Shruti Sunny Gandhi as a director in place of herself, who retired by rotation and was eligible for re-appointment.

Meeting proceedings

Sunny Gandhi, Whole-time Director, presided over the meeting. He provided an overview of the diamond industry landscape and the company’s financial performance for FY26. The notice convening the meeting, the Directors’ Report, and annual accounts were taken as read with member consent.

Remote e-voting facilities were extended via National Securities Depository Limited from September 27 to September 29, 2026. Members present virtually who had not voted remotely were permitted to vote during the AGM. Kiran Doshi, Practising Company Secretary, served as the scrutinizer to oversee voting conduct. E-voting results will be uploaded to the company website and communicated to stock exchanges.

Sunraj Diamond Exports Limited reported a standalone net profit of ₹5.11 lakh for FY26, marking a 41% decline from ₹8.70 lakh in the previous year. The company’s consolidated bottom line swung to a loss of ₹5.65 lakh, compared to a profit of ₹5.98 lakh in FY25.

While standalone revenue from operations grew 26.5% to ₹23.37 crore, the consolidated entity recorded a loss before tax of ₹21.32 crore. This deterioration was driven by a significant increase in cost of traded goods, which nearly doubled to ₹15.76 crore from ₹8.88 crore in the prior year.

Financial Performance Overview

The company’s standalone operations showed mixed results, with top-line growth failing to translate into bottom-line stability due to rising input costs and other expenses. The consolidated view reflects the additional burden from its subsidiary, Sunraj Diamonds DMCC, which incurred a loss of ₹3,434 during the period.

What the Numbers Show

A critical divergence exists between the standalone and consolidated performance. While the standalone entity remained profitable due to a substantial tax credit of ₹15.66 crore arising from adjustments for earlier years, the consolidated entity posted a loss. This indicates that the operational profitability was negative; the standalone profit was entirely driven by non-operational tax benefits rather than core business growth. The consolidated loss before tax of ₹21.32 crore highlights the underlying operational stress masked by these one-time tax adjustments in the standalone accounts.

Balance Sheet and Liquidity

The company’s total assets decreased to ₹255.25 crore from ₹268.13 crore in the previous year. Inventories, which constitute a major portion of current assets, declined slightly to ₹164.63 crore. Trade receivables stood at ₹88.53 crore, with a significant portion aged over three years, raising concerns about collection efficiency despite management’s assertion of recoverability.

Borrowings, primarily unsecured loans from directors, reduced to ₹146.83 crore from ₹167.55 crore. The cash position improved marginally to ₹2.39 crore on a standalone basis, aided by positive operating cash flows of ₹20.91 crore driven by working capital releases.

Operational Context

The diamond trading sector faced headwinds in FY26, characterized by weak global demand and competition from lab-grown diamonds. The company’s management noted that raw material prices remained low, which impacted margins but offered some opportunity for traders. No dividend was recommended for the year, consistent with the need to conserve resources amidst fluctuating profits.