Vivid Mercantile Limited and its Director, Mr. Satish Ramanlal Gajjar, have been restrained from accessing the securities market for a period of five years by the Securities and Exchange Board of India (SEBI). The order, received on June 4, 2026, prohibits the company and the director from buying, selling, or dealing in securities directly or indirectly. SEBI has also directed the company to disgorge ₹40,84,556, while a monetary penalty of ₹10 lakhs has been imposed on the director.

The Quasi-Judicial Authority of SEBI passed the order alleging violations of Sections 12A(a), 12A(b), and 12A(c) of the SEBI Act. The action follows purported breaches of Regulations 3(a), 3(b), 3(c), 3(d), 4(1), 4(2)(f), 4(2)(k), and 4(2)(r) read with Regulation 2(1)(c) of the PFUTP Regulations. The penalty on the director was levied under Section 15HA of the SEBI Act.

Details of the SEBI Order

The disclosure submitted to BSE Limited outlined the specific actions taken against the listed entity and its management. The table below summarizes the key directives issued by the regulator.

Company Response

Vivid Mercantile stated that it is currently examining the next steps to be taken regarding the order. The company mentioned it is analyzing the potential impact of this directive on its financial, operational, or other activities. Further disclosures will be made as the company assesses the situation and determines its course of action.

Vivid Mercantile Limited reported a net profit of ₹1,078.80 lakh for the financial year ended March 31, 2026, a significant rise from ₹137.70 lakh in the previous year. Revenue from operations surged to ₹4,691.06 lakh compared to ₹1,370.99 lakh in FY25, reflecting robust growth in its commodities trading business. The company’s total assets increased to ₹7,113.49 lakh as of March 31, 2026, up from ₹5,919.70 lakh in the prior year.

The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026 at a meeting held on May 28, 2026. M/s. Shah Karia & Associates, Statutory Auditors, issued an audit report with an unmodified opinion on the standalone financial statements. The trading window remained closed until 48 hours after the declaration of the results in compliance with insider trading regulations.

Financial Performance

The company’s profitability improved significantly across key metrics. Profit before tax for FY26 stood at ₹1,301.38 lakh, compared to ₹159.44 lakh in the previous year. Total expenses for the year were ₹3,562.58 lakh, up from ₹1,515.82 lakh in FY25. Basic earnings per share (EPS) for the year increased to ₹1.08 from ₹0.14 in the prior year.

For the quarter ended March 31, 2026, the company reported a net profit of ₹144.35 lakh. Revenue from operations for the quarter was ₹1,359.68 lakh. The board approved an EPS of ₹1.00 per equity share for the year.

Key Financial Figures (FY26)

Operational and Balance Sheet Details

Vivid Mercantile’s balance sheet showed a healthy cash position with cash and cash equivalents rising to ₹227.09 lakh as of March 31, 2026, from ₹10.65 lakh a year earlier. Investments increased to ₹3,502.50 lakh from ₹2,339.84 lakh in the previous year. Inventories decreased to ₹478.25 lakh from ₹1,938.91 lakh.

The company noted a reclassification of fair value changes on investments during the quarter ended March 31, 2026. These adjustments, previously recognised as Other Administrative Expenses, were reclassified directly against investments with the impact transferred to the Other Comprehensive Income (OCI) Reserve. This reclassification does not affect total equity or net profit for the year but renders full-year administrative expenses incomparable with the nine-month period ended December 31, 2025.