Surbhi Industries reported a net profit of ₹36.09 lakh for the quarter ended June 30, 2026, marking a 25% year-on-year decline from the ₹48.04 lakh recorded in Q1FY26. The Surat-based manufacturer saw revenue from operations contract by 18% to ₹667.99 lakh, down from ₹818.34 lakh in the corresponding period of FY26, as broader cost pressures and reduced non-operating income offset savings in material consumption.

The Board of Directors approved the unaudited financial results on July 28, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, Ghael Choksi & Company. The company prepared the financial statements in accordance with IND AS notified under the Companies (Indian Accounting Standards) Rules, 2015.

Financial Performance Breakdown

Revenue from operations stood at ₹667.99 lakh, compared to ₹775.89 lakh in the preceding quarter (Q4FY26) and ₹818.34 lakh in the same quarter last year. Other income decreased significantly to ₹29.73 lakh from ₹87.30 lakh in Q4FY26 and ₹40.97 lakh in Q1FY26, contributing to a total income of ₹697.72 lakh.

Total expenses amounted to ₹661.63 lakh, a decrease from ₹822.14 lakh in the previous quarter but higher than the ₹811.27 lakh incurred in Q1FY26. Cost of materials consumed declined to ₹407.96 lakh from ₹427.91 lakh in the prior year period. However, this saving was partially negated by a rise in depreciation and amortisation expenses, which jumped to ₹102.06 lakh from ₹91.20 lakh in Q1FY26. Finance costs also remained elevated at ₹29.29 lakh compared to ₹53.62 lakh in the same quarter last year, though they were lower than the ₹61.95 lakh seen in Q4FY26.

What the Numbers Show

The divergence between revenue contraction and expense management highlights operational headwinds. While Surbhi Industries successfully reduced its cost of materials consumed, the increase in depreciation expenses suggests significant capital investments are impacting short-term profitability. Furthermore, the sharp decline in other income—from ₹40.97 lakh in Q1FY26 to ₹29.73 lakh in Q1FY27—indicates a reduction in non-operating returns, which previously provided a buffer against operating margin pressures. The absence of deferred tax benefits, unlike the ₹46.70 lakh benefit seen in Q4FY26, further compressed the bottom line, resulting in a net profit that is significantly lower than both the preceding quarter and the same period last year.

Surbhi Industries Limited has communicated to the Bombay Stock Exchange that the provisions of Regulation 23(9) of the SEBI (Listing Obligation and Disclosure Requirement) Regulation, 2015 are not applicable to the company for the quarter ended March 31, 2026. This notification was formally submitted by the Managing Director, Ravjibhai P. Patel, on May 15, 2026.

Regulatory Exemption Details

The exemption is availed pursuant to Regulation 15(2) of the SEBI (Listing Obligation and Disclosure Requirement) Regulation, 2015. This regulation provides relief from specific corporate governance norms for listed entities that meet certain financial criteria. Consequently, the company is not required to submit the "Disclosure of Related Party Transaction on a Consolidated basis" for the specified quarter.

Eligibility Criteria

The company qualifies for this non-applicability based on the following conditions outlined in the regulations:

• The listed entity has a paid-up equity share capital not exceeding Rs. 10 Cr.
• The net worth of the entity does not exceed Rs. 25 Cr., calculated as on the last day of the previous financial year.
• The company's equity share capital is listed exclusively on the SME Exchange.

Corporate Governance Compliance

Under the cited regulation, compliance with various corporate governance provisions is not required for eligible companies. These include regulations 17 through 27, specific clauses of sub-regulation (2) of regulation 46, and paragraphs C, D, and E of Schedule V of the SEBI LODR regulations.