Viram Suvarn FY26 Results: Net profit up 122% on cost cuts
- Net profit surged 122.3% YoY to ₹757.70 lakh in FY26
- Total revenue held steady at ₹2,502.11 lakh as expenses fell 31.3%
- Inventory buildup drove expense reduction but lowered turnover ratio
- Company raised ₹3,025.63 lakh via rights issue during the year
- No dividend recommended; AGM scheduled for September 28, 2026
*this image is generated using AI for illustrative purposes only.
Viram Suvarn Limited posted a net profit of ₹757.70 lakh for FY26, a 122.3% increase from the previous year, driven by disciplined cost control and strategic inventory build-up.
Total revenue remained relatively stable at ₹2,502.11 lakh, while total expenses fell 31.3% to ₹1,508.87 lakh. The company also raised ₹3,025.63 lakh through a rights issue during the fiscal year.
Financial Performance
Revenue from operations stood at ₹2,459.78 lakh in FY26, compared to ₹2,648.20 lakh in FY25. Other income contributed ₹42.34 lakh, a new addition not present in the prior year.
| Metric | FY26 (₹ lakh) | FY25 (₹ lakh) | Change |
|---|---|---|---|
| Revenue from Ops | 2,459.78 | 2,648.20 | -7.1% |
| Total Expenses | 1,508.87 | 2,197.61 | -31.3% |
| Profit Before Tax | 993.24 | 450.59 | +120.4% |
| Net Profit After Tax | 757.70 | 340.89 | +122.3% |
The reduction in expenses was primarily due to favorable inventory adjustments. Purchase of stock-in-trade rose to ₹3,620.51 lakh from ₹2,225.57 lakh, offset by a significant credit from changes in inventories of ₹2,215.73 lakh, compared to ₹115.62 lakh in FY25.
What the Numbers Show
The divergence between rising stock purchases and flat revenue highlights a deliberate shift in working capital strategy. Inventory levels surged to ₹3,193.05 lakh from ₹977.32 lakh, causing the inventory turnover ratio to drop sharply from 2.29 to 0.67. This indicates slower movement of goods during the year, likely positioning the company for future sales rather than reflecting immediate demand weakness.
Capital Fortification
Viram Suvarn successfully completed a rights issue, raising ₹3,025.63 lakh by issuing 3,78,20,426 equity shares at ₹8 per share. This infusion increased paid-up capital to ₹22,69,22,556. The company operates with negligible finance costs of just ₹0.19 lakh, maintaining a debt-free foundation.
Governance Updates
The company will hold its 15th Annual General Meeting on September 28, 2026, via video conferencing. Key agenda items include the re-appointment of Managing Director Mahendra Ramniklal Shah and Independent Director Sanjay Chunilal Vibhakar for five-year terms. The Board has decided not to recommend any dividend for FY26.
Historical Stock Returns for Viram Suvarn
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.07% | +2.46% | -2.71% | +23.17% | +30.74% | -18.78% |
How will the significant inventory buildup of ₹3,193 lakh impact future cash flows and revenue recognition in FY27?
What specific growth initiatives or market expansions is Viram Suvarn planning to fund with the ₹30.25 crore raised from the rights issue?
Given the sharp drop in inventory turnover ratio to 0.67, what strategies will management employ to accelerate stock movement and improve working capital efficiency?
17
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
