VK Global Industries Limited (formerly SPS International Limited) reported a net profit of ₹0.77 lakh for the first quarter of FY27, ending June 30, 2026. This represents a sharp decline from the ₹17.45 lakh profit recorded in the preceding quarter (Q4FY26). While revenue grew significantly compared to the same period last year, the company faced margin pressure due to rising operational costs.

The Board of Directors approved the unaudited financial results on August 12, 2026. The company also appointed M/s Saurabh RD and Associates as its Internal Auditor for the financial year 2026-27, based on the recommendation of the Audit Committee.

Financial Performance

Revenue from operations stood at ₹28.25 lakh in Q1FY27, up from ₹16.76 lakh in Q1FY26. However, this was lower than the ₹39.91 lakh recorded in the immediate previous quarter. Total income, including interest income of ₹0.05 lakh, reached ₹28.30 lakh. The company’s earnings per share (EPS) for the quarter were ₹0.02, down from ₹0.41 in Q4FY26.

Total expenses were ₹27.53 lakh, down slightly from ₹28.08 lakh in Q4FY26 but higher than the ₹24.27 lakh in Q1FY26. Key expense drivers included:

• Employee benefits: ₹7.44 lakh (up from ₹4.85 lakh in Q1FY26)
• Other expenses: ₹12.18 lakh (down from ₹15.41 lakh in Q4FY26)
• Depreciation: ₹3.73 lakh
• Cost of material consumed: ₹4.13 lakh

For context, the full year FY26 saw total revenue from operations of ₹99.21 lakh and a net profit after tax of ₹9.91 lakh.

What the Numbers Show

The divergence between revenue growth and profit contraction highlights cost structure sensitivity. While revenue rose 68.5% year-on-year, employee benefit expenses surged 53.4% over the same period, indicating that labor costs are scaling faster than top-line growth. Additionally, the absence of other income means the entire bottom line relies solely on operational profitability, which narrowed significantly compared to the prior quarter.

Balance Sheet and Cash Flow

As of June 30, 2026, total assets stood at ₹343 lakh, marginally higher than ₹342 lakh at the end of March 2026. Cash and cash equivalents increased to ₹23 lakh from ₹21 lakh in the previous quarter. The company remains debt-free, with no borrowings reported under current or non-current liabilities.

Operating cash flow generated ₹5 lakh during the quarter, supported by a net increase in cash and cash equivalents of ₹2 lakh. Investing activities resulted in a net cash outflow of ₹3 lakh, primarily due to fixed asset purchases of ₹13 lakh, partially offset by proceeds from the sale of investments.

Corporate Actions

The Board scheduled the 33rd Annual General Meeting for September 22, 2026, to be conducted via Video Conferencing or Other Audio Visual Means (VC/OAVM). The statutory auditor, Jain Jain & Associates, provided a limited review report confirming that the financial statements comply with Ind AS 34 and SEBI Listing Regulations.