Vandan Foods concluded its 11th Annual General Meeting on September 21, 2026, with shareholders approving key governance and financing resolutions.

The meeting, chaired by Chairman Jitendra Rameshbhai Patel, transacted all items of business via video conferencing. Shareholders passed ordinary resolutions to adopt the audited standalone financial statements for FY26 and re-appoint Executive Director Kalpeshkumar Bhagavandas Thakkar.

Financing Resolutions

The Board secured approval for four special resolutions related to capital structure flexibility:

• Grant of loan, guarantee, or security under Section 185 of the Companies Act, 2013, up to an aggregate limit of ₹300 crore
• Loans, guarantees, or security under Section 186 of the Companies Act, 2013, up to an aggregate limit of ₹300 crore
• Creation of charges on movable and immovable properties for borrowings up to an aggregate limit of ₹300 crore
• Increase in borrowing limits up to an aggregate limit of ₹300 crore

Governance Appointments

Shareholders appointed Ankitkumar Surendrakumar Agrawal as an Independent Director via a special resolution. The company also ratified the remuneration payable to Cost Auditors for the financial year 2026-27 through an ordinary resolution.

The Managing Director, Rakeshkumar Patel, confirmed that voting results and the Scrutinizer's Report will be disseminated to stock exchanges and placed on the company website in due course.

Vandan Foods reported a significant expansion in scale for the financial year ended March 31, 2026, with revenue from operations rising approximately 140% to ₹25,963.4 lakh. Despite the top-line growth, profitability contracted sharply as operating margins faced pressure from higher input costs and increased borrowing expenses.

The company's net profit after tax dropped to ₹132.37 lakh from ₹690.70 lakh in the previous fiscal year. This decline occurred even as the firm completed its Initial Public Offer (IPO) and listed on the BSE SME Platform in July 2025, raising ₹3,036.00 lakh.

Financial Performance

Revenue growth was primarily driven by the commissioning of expanded capacity at its Dhinoj facility and higher volumes of Refined F.S.G. Castor Oil and Castor De-Oiled Cake. However, the bottom line was impacted by several cost factors:

• Raw Material Costs: Firm castor seed prices compressed crushing spreads, with cost of material consumed rising to ₹17,245.02 lakh from ₹9,918.99 lakh.
• Finance Costs: Interest expenses nearly doubled to ₹178.52 lakh from ₹91.30 lakh, reflecting higher utilization of working capital limits.
• Depreciation: Charges surged to ₹153.14 lakh from ₹19.51 lakh following the capitalization of new plant and machinery.
• Other Expenses: Increased to ₹754.08 lakh from ₹358.35 lakh, including one-time IPO-related professional fees.

Balance Sheet and Capital Structure

The balance sheet size expanded to ₹11,864.07 lakh from ₹4,877.96 lakh. Shareholders' funds increased significantly to ₹4,806.83 lakh from ₹1,638.46 lakh, bolstered by the IPO proceeds. Short-term borrowings rose to ₹2,517.13 lakh from ₹1,061.05 lakh to support the larger operational scale.

Inventory levels stood at ₹6,561.02 lakh, up from ₹2,751.99 lakh, while trade receivables grew to ₹2,643.31 lakh from ₹583.73 lakh. The debt-equity ratio improved to 0.52 times from 1.12 times, indicating a stronger capital structure post-IPO.

What the Numbers Show

The divergence between revenue growth and profit contraction highlights the working capital intensity of the castor oil processing business. While revenue more than doubled, the company's ability to convert sales into cash flow was constrained by rising inventory and receivables. The sharp increase in finance costs suggests that the expanded operations are currently funded largely through debt, pressuring margins until the new capacity reaches optimal utilization efficiency.

Corporate Governance and AGM

The company will hold its 11th Annual General Meeting on September 21, 2026, via video conferencing or other audio-visual means. Key agenda items include:

• Re-appointment of Executive Director Kalpeshkumar Bhagavandas Thakkar.
• Appointment of Ankitkumar Surendrakumar Agrawal as an Independent Director.
• Approval for loans, guarantees, and investments up to an aggregate limit of ₹300 crore under Sections 185 and 186 of the Companies Act, 2013.
• Ratification of remuneration for Cost Auditors.

No dividend was recommended for FY26 as the board prioritized conserving resources for future growth.