Vellora Impact Limited reported a net profit of ₹7.90 crore for the quarter ended June 30, 2026, reversing a net loss of ₹2.11 crore in Q1FY26. The company’s revenue from operations jumped to ₹141.92 crore, compared to ₹1.17 crore in the preceding quarter and ₹1.17 crore in the corresponding period last year. This performance reflects the company’s strategic shift from chemical manufacturing to information technology and agriculture services, with management citing a significant revenue-generating contract secured in Q4FY26 as a key driver for future operations.

The Board of Directors approved the unaudited financial results on July 22, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditor, Chandabhoy & Jassoobhoy Chartered Accountants, issued a limited review report but included a qualified opinion. The qualification stems from the company accounting for gratuity and leave encashment on a cash basis, which contradicts Ind AS 1 and Ind AS 19 standards prescribed by the Institute of Chartered Accountants of India. The auditor noted that the extent of non-compliance in terms of value is not ascertainable.

Financial Performance Breakdown

The company’s financials show a distinct separation between its discontinued chemical operations and new business segments. Total income stood at ₹141.92 crore, entirely derived from operations, as other income remained negligible at ₹0.00 lakh. Expenses were primarily driven by the purchase of stock-in-trade at ₹135.66 crore, partially offset by a decrease in inventories of ₹1.94 crore.

Segment reporting reveals that the agriculture segment contributed ₹141.92 crore to revenue and generated an EBITDA of ₹7.98 crore. In contrast, the chemical segment, which was discontinued during the previous year, had previously contributed ₹1.18 crore in revenue for Q4FY26. The company’s total assets associated with the agriculture segment stand at ₹74.51 crore, matching its liabilities for that segment.

Auditor Qualifications and Business Transition

The qualified opinion also draws attention to the discontinuation of manufacturing operations in September 2025. Machinery and building structures were dismantled, with some sold as scrap and others impaired. However, assets were later sold at values better than expected, leading to a reversal of impairment losses booked in the prior year. From January 1, 2026, the company officially changed its business objective to information and technology services.

Management maintains that the audit qualifications will not have a material adverse impact on future operations or the company’s ability to continue as a going concern. They emphasize that the diversification into new business lines and the securing of significant contracts support this view. The earnings per share for the quarter stood at ₹14.19, a stark improvement from the diluted EPS of ₹(3.79) in Q1FY26.

Vellora Impact Limited has received formal requests from several members of its promoter group seeking reclassification from the 'Promoter' category to the 'Public' category. The company, formerly known as Pratiksha Chemicals Limited, disclosed on July 29, 2026, that the requests are made under Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulatory shift signifies that these entities no longer exercise control or influence over the company’s business and policy decisions.

The reclassification process is subject to the approval of the Board of Directors and BSE Limited. Vellora Impact stated it will follow the necessary procedures and submit the requisite applications to the stock exchanges in due course. The disclosure aims to update the shareholding pattern to reflect the current status of control and influence within the corporate structure.

The request involves nine distinct entities and individuals who were previously part of the Promoter/Promoter Group. These include Mr. Kantilal Patel, Mr. Mukesh Chinubhai Shah, Mr. Harish K. Bhatt, Ms. Surbhi Harishbhai Bhatt, Mr. Harshadbhai K Patel, Mr. Ratnakalaben H Patel, Mr. Jayesh Patel, Ms. Purnima Adhvaryu, and the Karta of Harshad Kantilal Patel HUF. Each applicant has certified that they do not hold more than 1% of the total voting rights collectively with related persons, nor do they have special rights or board representation.

The filing also noted changes in the composition of the promoter group due to deaths and corporate actions. Mrs. Chandraprabha K. Bhatt and Mr. Jayesh Bachubhai Chauhan, who were previously part of the promoter group, have passed away. Their death certificates were enclosed with the intimation. Additionally, H B Builders Pvt. Ltd., another former member of the promoter group, has been struck off from the Register of Companies by the Registrar of Companies, Ahmedabad.

Regulatory Compliance and Certifications

Under Regulation 31A, applicants must certify specific conditions to qualify for reclassification. All requesting parties confirmed that they, along with related persons as defined under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018:

• Do not hold more than 10% of the total voting rights in the company.
• Do not exercise direct or indirect control over the company’s affairs.
• Do not possess special rights through formal or informal arrangements, including shareholder agreements.
• Are not represented on the Board of Directors, including through nominee directors.
• Are not acting as Key Managerial Personnel.
• Are not classified as 'wilful defaulters' under Reserve Bank of India guidelines or fugitive economic offenders.
• Have no pending regulatory actions against them.

Furthermore, each applicant affirmed that their collective holding with related persons does not exceed 1% of the total voting rights, reinforcing their lack of significant influence on the company’s governance.