United Van Der Horst Ltd reported a significant year-on-year decline in profitability for the quarter ended June 30, 2026, as rising finance costs and other expenses weighed on margins despite stable revenue generation. The company’s standalone net profit fell 45% to ₹112.42 lakhs from ₹204.19 lakhs in Q1FY26, signaling operational headwinds that investors will need to monitor closely. Consolidated net profit also contracted to ₹113.13 lakhs, reflecting similar pressure across the group structure.

The Board of Directors approved the unaudited financial results on August 6, 2026, pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015. Statutory auditors CKSP And Co LLP issued an unmodified limited review conclusion on both standalone and consolidated statements. The Board also appointed M/s. Ashish Swar & Associates as internal auditor for FY2026-27 and recommended the re-appointment of Jagmeet Singh Sabharwal as Chairman and Managing Director for three years, subject to shareholder approval at the ensuing AGM.

Financial Performance

Revenue from operations held steady at ₹915.02 lakhs, up marginally from ₹909.31 lakhs in Q1FY26 but significantly higher than ₹593.86 lakhs in Q4FY26. However, total expenses rose to ₹767.95 lakhs from ₹605.52 lakhs year-on-year, primarily driven by an increase in other expenses to ₹218.66 lakhs from ₹151.82 lakhs. Finance costs also climbed to ₹63.56 lakhs from ₹57.38 lakhs.

Segment-wise, job work and reconditioning contributed ₹529.83 lakhs, slightly down from ₹538.84 lakhs, while manufacturing revenue rose to ₹385.19 lakhs from ₹370.47 lakhs. The company noted that meaningful segregation of expenses between segments is not practicable due to shared resources.

What the Numbers Show

The divergence between stable revenue and sharply declining profits highlights a margin compression issue. While top-line growth was negligible, the bottom line suffered disproportionately due to elevated other expenses and finance costs. This suggests fixed cost inefficiencies or one-off charges impacting current period performance rather than a demand-side weakness. Additionally, the company continues to monitor ongoing legal proceedings regarding property tax dues with the Panvel Municipal Corporation, where ₹75.84 lakhs were recognized in earlier periods, with half remaining unpaid pending court outcomes.

United Van Der Horst Limited reported a net profit of ₹521.85 lakh for the financial year ended March 31, 2026, an increase from ₹435.75 lakh in the previous year. Revenue from operations for the year stood at ₹3,194.22 lakh, compared to ₹3,004.19 lakh in FY25. The Board of Directors approved the audited standalone and consolidated financial results at a meeting held on May 30, 2026. The company has submitted the extract copies of the newspaper advertisement clippings for the results to BSE Limited in compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

For the quarter ended March 31, 2026, the company recorded a net profit of ₹35.78 lakh, down from ₹98.41 lakh in the same quarter last year. Revenue for the quarter declined to ₹593.86 lakh from ₹885.42 lakh in Q4 FY25. Total income for the year rose to ₹3,281.59 lakh from ₹3,066.27 lakh in the prior year.

Segment and Operational Details

The company operates in two primary segments: Manufacturing and Job work & Reconditioning. Job work & Reconditioning contributed ₹2,028.74 lakh to the annual revenue, while Manufacturing contributed ₹1,165.48 lakh. The statutory auditors, C K S P And Co LLP, issued an unmodified opinion on the audited standalone and consolidated financial results.

Key Disclosures

The board declared interim dividends of ₹1 per equity share (face value ₹5) and ₹0.20 per equity share (face value ₹1) during the year, both of which have been paid. The company also noted an additional cost of ₹5.28 lakhs recognized under employee benefit expenses due to the New Labour Codes notified by the Government of India. The trading window for dealing in the company's securities remains closed until 48 hours after the financial results are announced.