Surat Trade & Mercantile Limited reported a 12% year-on-year increase in net profit to ₹9.67 crore for the first quarter ended June 30, 2026, driven by a robust 32% surge in revenue from operations. The Surat-based commodity trader posted revenue of ₹49.35 crore, up from ₹37.29 crore in Q1FY25, reflecting strong trading activity and improved operational efficiency. This performance highlights the company’s ability to capitalize on market opportunities despite broader sectoral volatility.

The Board of Directors approved the unaudited financial results on August 12, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Sharp & Tannan Associates, the statutory auditors, conducted a limited review of the standalone financial statements under Standard on Review Engagements (SRE) 2410 and issued an unmodified conclusion. The results were prepared in accordance with Indian Accounting Standards (Ind AS), specifically Ind AS 34 for interim financial reporting.

Financial Performance

Total income for the quarter stood at ₹57.50 crore, compared to ₹45.14 crore in Q1FY25. Other income contributed ₹8.16 crore, a notable improvement from a negative balance of ₹0.36 crore in the preceding quarter (Q4FY26) and a positive ₹7.85 crore in the same quarter last year. Total expenses were ₹46.26 crore, with purchases of stock-in-trade accounting for ₹68.40 crore, offset by a decrease in inventories of ₹24.23 crore.

Earnings per share (basic) rose to ₹0.44 from ₹0.39 in the previous year. The company recorded a profit before tax of ₹11.24 crore, against ₹10.06 crore in Q1FY25. Tax expenses totaled ₹15.72 crore, comprising current tax of ₹9.45 crore and deferred tax of ₹6.27 crore.

Regulatory Disclosure and Governance

The company disclosed a non-compliance with Regulation 23 of the SEBI LODR Regulations regarding certain related-party transactions with Managing Director Alok P. Shah during FY25-26, which exceeded prescribed thresholds without prior shareholder approval. The matter was ratified by the Board and shareholders, and a Voluntary Settlement Application was filed with SEBI on August 11, 2026, under the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018. The outcome remains uncertain and is disclosed as a contingent liability.

The Board approved the re-appointment of Deepak N. Shah as an Independent Director for a second term of five years, effective August 11, 2027, subject to shareholder approval at the upcoming Annual General Meeting. The 80th AGM is scheduled for September 22, 2026, via Video Conferencing. Jigar Vyas & Associates has been appointed as the scrutinizer for e-voting. The cut-off date for AGM entitlements is August 21, 2026.

Surat Trade & Mercantile Surat Trade & Mercantile conducted its First Extra-Ordinary General Meeting (EGM) for the Financial Year 2026-27 on August 10, 2026. The meeting, held via Video Conferencing/Other Audio-Visual Means (VC/OAVM), addressed three critical governance and operational matters: the re-appointment of a key executive, an expansion of corporate investment powers, and the ratification of material related-party transactions.

The proceedings commenced at 11:30 a.m. (IST) and concluded at 12:03 p.m. (IST). The company confirmed that the required quorum was present to commence business. In compliance with Section 108 of the Companies Act, 2013 and Rule 20 of the Companies (Management and Administration) Rules, 2014, shareholders were provided remote e-voting facilities. Voting commenced on August 7, 2026, at 9:00 a.m. and ended on August 9, 2026, at 5:00 p.m., with voting rights determined based on the shareholding record as of August 1, 2026.

The Board placed three resolutions before the shareholders for approval. The first resolution sought to re-appoint Suhail P. Shah (DIN: 00719002) as Whole-Time Director for a period of five years. This ordinary resolution ensures continuity in executive leadership. The second resolution, classified as a special resolution, aimed to increase the limit for making investments, providing loans, giving guarantees, and securities under Section 186 of the Companies Act, 2013. This adjustment is typically intended to provide the company with greater financial flexibility for strategic capital allocation.

The third resolution involved the approval and ratification of Material Related Party Transactions with Mr. Alok P. Shah (DIN: 00218180), Managing Director, which exceeded prescribed limits for the Financial Year 2025-26. This ordinary resolution serves to regularize past transactions in compliance with regulatory norms. All three resolutions were voted upon via remote e-voting and e-voting during the EGM (Insta-poll).

M/s. Jigar Vyas & Associates, Practicing Company Secretaries, Surat, appointed Mr. Jigar Vyas (FCS No. 8019, CP No. 14468) as the Scrutinizer to oversee the voting process. Kfin Technologies Limited facilitated the e-voting infrastructure. The consolidated outcome of the voting is pending the receipt of the Scrutinizer's Report and will be disclosed subsequently on the company’s website and to the stock exchanges.

Resolutions Transacted at the EGM

The meeting was conducted in adherence to General Circulars issued by the Ministry of Corporate Affairs (MCA) and Circulars issued by the Securities and Exchange Board of India (SEBI). Ankita Prasiddha Shroff, Company Secretary and Compliance Officer, certified the proceedings.