Virgo Polymers (India) Limited reported a sharp decline in standalone profitability for the quarter ended June 30, 2026, as revenue and profit metrics contracted significantly compared to the prior year. The company posted a net profit of ₹2.0 lakh, down from ₹7.5 lakh in the corresponding quarter of FY25, representing a 73% year-on-year decline.

Revenue from operations fell 47% to ₹843.1 lakh, compared to ₹1,592.3 lakh in Q1FY26. This operational slowdown was partially offset by a rise in other income, which increased to ₹386.8 lakh from ₹332.1 lakh in the previous year. Total revenue stood at ₹1,229.9 lakh, down from ₹1,924.4 lakh in Q1FY26.

Financial Performance

The company’s total expenses decreased to ₹1,227.9 lakh from ₹1,916.9 lakh in the same quarter last year. Key expense drivers included:

• Purchases of stock in trade: ₹700.7 lakh (down from ₹1,279.2 lakh)
• Employee benefit expenses: ₹280.7 lakh (up from ₹48.8 lakh)
• Raw material consumed: ₹84.0 lakh (down from ₹116.7 lakh)

Profit before tax was ₹2.0 lakh, unchanged from the pre-tax figure due to no tax expense recorded for the quarter. Earnings per share (basic and diluted) stood at ₹0.1, compared to ₹0.2 in Q1FY25.

What the Numbers Show

While operational revenue declined sharply, other income constituted 31% of total revenue in Q1FY27, up from 17% in Q1FY26. This shift highlights a growing reliance on non-operating income sources during a period of reduced core business activity. Employee benefit expenses rose nearly six-fold to ₹280.7 lakh despite the revenue drop, suggesting fixed cost pressures or one-time personnel-related outflows that did not scale with lower production volumes.

Corporate Actions

During its board meeting held on August 12, 2026, Virgo Polymers approved several administrative changes:

• Appointment of M/s. Binay Kumar & Co., Chartered Accountants, as internal auditors for FY27, replacing M/s. DTSB & Associates who resigned on July 15, 2026.
• Transfer of the company’s current bank account from State Bank of India, SME Maraimalai Nagar Branch, to SBI Anna Nagar, Chennai Branch.
• Sale of property located at C-44, SIDCO Industrial Estate, Maraimalai Nagar, Chengalpattu District, Tamil Nadu.

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors, with a limited review report issued by statutory auditors Venkat & Rangaa LLP.

Virgo Polymers (India) Ltd announced that DTSB & Associates, Chartered Accountants, resigned from the position of internal auditor effective July 15, 2026. The resignation was submitted via a letter dated July 15, 2026, citing other pre-occupancy as the reason for the change. The company confirmed that the resignation letter was received on the same day.

The company stated there were no concerns raised by the outgoing auditor regarding the management of Virgo Polymers, nor were there any material reasons for the resignation. Vivek Ramsisaria, Managing Director, signed the intimation sent to BSE Limited.

Resignation Details

The following table outlines the specifics of the auditor change as per the regulatory disclosure:

The Audit Committee and the Board of Virgo Polymers will consider the appointment of new internal auditors in due course. The company will intimate the exchange once a new appointment is finalized. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.