Veerkrupa Jewellers reported a 103% year-on-year increase in total income to ₹5,938.81 lakh for the financial year ended March 31, 2026. Despite the significant topline growth, the company’s profitability contracted as expenses rose at a faster pace than revenue.

Net profit after tax (PAT) declined 16.4% to ₹16.65 lakh from ₹19.92 lakh in FY25. The drop was driven by a 54.3% fall in pre-tax profit to ₹10.24 lakh, reflecting higher operational costs relative to sales growth. Earnings per share (EPS) halved to ₹0.01 from ₹0.02 in the previous year.

Financial Performance

The company’s revenue from operations stood at ₹5,938.79 lakh, more than doubling from ₹2,925.69 lakh in FY25. Total expenses increased by approximately 104.2% to ₹5,928.57 lakh. Purchase of stock-in-trade rose nearly 72% to ₹5,799.50 lakh, aligning with higher business volumes. Employee benefit expenses more than doubled to ₹25.67 lakh from ₹13.61 lakh.

What the Numbers Show

While revenue growth was robust, the operating profit margin compressed significantly to 0.17% from 0.77% in the prior year. This divergence indicates that the cost structure expanded disproportionately to top-line gains. Additionally, the deferred tax credit of ₹9.32 lakh contributed substantially to the bottom line; without it, the pre-tax loss would have been deeper relative to the small current tax provision of ₹2.91 lakh.

Regulatory and Corporate Developments

In a significant regulatory development, SEBI imposed a monetary penalty of ₹20 lakh on Managing Director Chirag Arvind Shah and debarred both him and the company from accessing the securities market for five years. The order cites violations of fraudulent and unfair trade practices regulations. The company has filed an appeal with the Securities Appellate Tribunal (SAT).

The Board did not recommend any dividend for FY26. The company also announced the appointment of M/s P H Shah and Co. as statutory auditors for five years, following the resignation of the previous auditors. The 7th Annual General Meeting is scheduled for September 29, 2026.

Veerkrupa Jewellers Limited announced on September 4, 2026, that its Board of Directors has approved the appointment of M/s P H Shah and Co., Chartered Accountants, as the new statutory auditor. The board also scheduled the company’s 7th Annual General Meeting for late September.

The appointment follows a recommendation by the Audit Committee. The firm will serve for five consecutive financial years, commencing from April 1, 2026, to March 31, 2031. This appointment is subject to shareholder approval at the upcoming AGM.

Auditor Profile

M/s P H Shah and Co. (FRN: 0115464W) was founded in 1996 and maintains offices in Ahmedabad and Nadiad, Gujarat. The firm provides audit and assurance, taxation, GST and ROC compliance, corporate finance, accounting, and business advisory services.

Meeting Logistics

The 7th AGM is fixed for Tuesday, September 29, 2026. E-voting for the meeting will be active from September 25, 2026, at 9:00 am to September 28, 2026, at 5:00 pm.

M/s Madhav Upadhyay and Associates has been appointed as the Scrutinizer to oversee e-voting procedures. The company will conduct the meeting via Video Conferencing or Other Audio-Visual Means, as permitted by Ministry of Corporate Affairs circulars.