SVC Industries reported a narrowed loss of ₹61.41 lakh for the quarter ended June 30, 2026, down from ₹70.21 lakh in the same period last year. The Mumbai-based company’s total income fell sharply to ₹7.24 lakh from ₹265.37 lakh in Q1FY25, driven by the complete cessation of its agricultural product sales business.

The company’s Board of Directors, in a meeting held on August 14, 2026, approved the unaudited financial results and authorized borrowing facilities aggregating up to ₹20.00 crore. This debt is to be secured by the pledge of shares held by the promoters or promoter group.

Financial Performance

The shift in operational focus is evident in the revenue composition. While lease rent income remained stable at ₹6.96 lakh, agri product sales dropped to zero from ₹241.75 lakh in the previous year’s quarter. Consequently, total expenses declined to ₹68.65 lakh from ₹335.58 lakh, primarily due to reduced material costs and inventory changes.

Depreciation charges remained high at ₹48.15 lakh, constituting a significant portion of total expenses despite the drop in operational activity. Employee benefits expense decreased to ₹11.03 lakh from ₹12.28 lakh.

What the Numbers Show

A critical observation is the dependency on non-operational income to offset fixed costs. With operating revenue limited to lease rentals of ₹6.96 lakh, the company’s core operations are insufficient to cover depreciation (₹48.15 lakh) and employee benefits (₹11.03 lakh) alone. The narrowing loss is largely attributable to the elimination of variable costs associated with the agri-product trading segment, which previously incurred significant purchase and inventory expenses.

Debt and Obligations

The company disclosed ongoing negotiations with outstanding debenture holders. Regarding a One Time Settlement (OTS) with Pradeshiya Industrial & Investment Corporation of U.P. Limited (PICUP), the company received an extension until September 30, 2026, to pay the remaining final installment of ₹1,947.75 lakh. The company is seeking a rebate on the interest portion of these dues, and under Ind AS 37, no provision has been made for additional interest or charges as a reliable estimate cannot be determined.

The statutory auditors, B.M. Chaturvedi & Co., issued a review report stating that nothing came to their attention to suggest the financial results contain material misstatements.

SVC Industries Limited has closed its trading window for all designated persons, insiders, directors, and their immediate relatives effective July 1, 2026. The restriction will remain in place until 48 hours after the declaration of the unaudited financial results for the quarter ended June 30, 2026. This measure is implemented to comply with the SEBI (Prohibition of Insider Trading) Regulations, 2015 and the company's internal Code of Conduct for Prohibition of Insider Trading.

The closure aligns with clause 4 of Schedule B read with Regulation 9 of the SEBI regulations. The specific date for the board meeting to consider and approve the unaudited financial results for the quarter ended June 30, 2026 has not yet been announced and will be intimated in due course.

The trading window closure prevents insiders from trading in the company's equity shares during the period leading up to the results announcement. This ensures that no unpublished price-sensitive information influences trading decisions. The window will reopen only after the mandatory 48-hour period following the results declaration.

The company has submitted this intimation to the BSE Limited, where its shares are listed under script code 524488. Jishan Ahmed, Company Secretary and Compliance Officer, signed the disclosure on behalf of svc industries .