Vivid Mercantile announced the resignation of its statutory auditor, M/s. Shah Karia and Associates, effective September 2, 2026. The firm cited personal reasons for stepping down and confirmed there were no unresolved concerns regarding the company’s management or affairs.

The resignation was communicated via a letter dated September 2, 2026. Shah Karia and Associates had been appointed as statutory auditor on September 3, 2025, with a term scheduled to expire on March 31, 2030. The firm submitted its latest limited review report for the quarter ended June 30, 2026, on August 7, 2026.

Resignation Details

The company disclosed that neither the resigning auditor nor the Audit Committee raised any material issues requiring deliberation. Consequently, no specific view from the Audit Committee is applicable in this instance. The Board of Directors will consider appointing a new statutory auditor to fill the casual vacancy in due course.

Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing includes details required under Schedule III of the Listing Regulations and relevant SEBI circulars, including CIR/CFD/CMD/4/2015 and HO/49/14/14(7)2025-CFD-POD2/1/3762/2026.

Vivid Mercantile Limited reported a net profit of ₹50.56 lakh for the first quarter ended June 30, 2026, down 58% year-on-year from ₹121.35 lakh in Q1FY26. While revenue from operations grew 23% to ₹207.66 lakh against ₹169.24 lakh in the corresponding prior period, profitability was pressured by a sharp rise in total expenses, which climbed to ₹468.13 lakh from ₹29.89 lakh a year ago. The divergence between revenue growth and profit contraction highlights significant margin compression during the quarter.

The Board of Directors approved the unaudited standalone financial results on August 7, 2026, following a review by the Audit Committee. The results were submitted to the Bombay Stock Exchange pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Shah Karia & Associates served as the independent auditor, issuing a limited review report under Standard on Review Engagements (SRE) 2410.

Financial Performance Highlights

Revenue from operations increased to ₹207.66 lakh from ₹169.24 lakh in Q1FY26. However, other income contributed significantly to the top line, rising to ₹319.95 lakh from nil in the previous year, bringing total revenue to ₹527.62 lakh. Despite this boost, the company faced higher operational costs. Cost of materials consumed rose to ₹1,538.21 lakh from ₹62.47 lakh, while changes in inventories showed a credit of ₹1,094.05 lakh compared to ₹62.47 lakh in the prior year.

What the Numbers Show

The most notable shift in Vivid Mercantile’s financial structure is the emergence of other income as a primary revenue driver. In Q1FY26, other income was nil, whereas it accounted for ₹319.95 lakh in Q1FY27, exceeding operational revenue. This non-operational surge masked underlying margin pressures, as total expenses skyrocketed to ₹468.13 lakh. Consequently, while total revenue more than tripled, net profit declined sharply, indicating that core operational efficiency did not keep pace with the volume or mix of income sources.

Basic earnings per share stood at ₹0.05, down from ₹0.12 in Q1FY26. Paid-up equity share capital remained unchanged at ₹1,002.56 lakh. The trading window for designated persons remained closed for 48 hours following the conclusion of the Board meeting, in compliance with SEBI’s Prohibition of Insider Trading Regulations, 2015.