VMS Industries has scheduled its 34th Annual General Meeting for September 28, 2026, to approve key corporate actions including related party transactions and a new board appointment. The meeting will be held via video conferencing or other audio-visual means without physical presence.

Financial Performance for FY26

The company’s audited financial statements for FY26 reveal a significant contraction in operational scale compared to the previous year.

Revenue from operations declined to ₹1,574.3 crore from ₹2,885.6 crore in FY25. Net profit after tax fell sharply to ₹146.3 lakh, down from ₹680.5 lakh. The Board decided not to recommend any dividend for the financial year ended March 31, 2026, citing the need to conserve financial resources for strengthening operations and meeting working capital requirements.

Related Party Transactions

The Board proposes ordinary resolutions to approve related party transactions with two entities for FY27 and thereafter:

These transactions are intended to be conducted on an arm’s length basis in the ordinary course of business. Interested directors, including Managing Director Mr. Manojkumar Jain and Whole-time Director Mrs. Sangeeta Jain, will abstain from voting as per regulatory requirements.

Board Appointment

Shareholders will vote on a special resolution to appoint Mr. Varun Manoj Kumar Jain as a Non-Executive Director. He is the son of the current Managing Director and Whole-time Director.

Mr. Jain holds an MBA and B.Com degree and has over 15 years of experience in the steel industry. He currently serves as Managing Director of VMS TMT Limited and Non-Executive Director of Aditya Ultra Steel Limited. His appointment is liable to retire by rotation.

Other Agenda Items

The AGM will also address standard ordinary business items:

• Adoption of audited standalone financial statements for FY26.
• Re-election of Mrs. Sangeeta Jain as Whole-time Director by rotation.
• Re-appointment of M/s S N Shah & Associates as Statutory Auditors.
• Ratification of remuneration for Cost Auditor M/s Anuj Aggarwal & Co.

Remote e-voting will be available from September 25 to September 27, 2026. The cut-off date for voting eligibility is September 18, 2026.

What the Numbers Show

The decline in profitability was driven by a sharper fall in operating revenue than in cost structures. While revenue dropped by over 45%, finance costs increased from ₹29.0 crore in FY25 to ₹39.2 crore in FY26, indicating higher interest burdens relative to shrinking top-line growth. This divergence compressed the net profit margin significantly, highlighting the sensitivity of earnings to volume fluctuations in the ship recycling and trading business.

VMS Industries reported a net profit of ₹46.26 lakh for the first quarter ended June 30, 2026, up 6.4% from ₹43.47 lakh in Q1FY26. The green ship recycling company saw revenue from operations rise 13.1% year-on-year to ₹4,482.59 lakh, driven by increased activity in its core segment. The Board of Directors, chaired by Managing Director Manoj Kumar Jain, approved the unaudited standalone financial results on August 12, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The statutory auditors, S N Shah & Associates, Chartered Accountants, issued a limited review report on the financial statements. The results were prepared in accordance with Indian Accounting Standard 34 (Ind AS 34) and reviewed under Standard on Review Engagements (SRE) 2410. The company also filed an integrated XBRL form for related party transactions for the quarter.

Financial Performance Highlights

VMS Industries demonstrated improved top-line growth while maintaining stable profitability metrics. Total income reached ₹4,635.35 lakh, compared to ₹4,118.21 lakh in the corresponding period of the previous year. Other income remained relatively flat at ₹152.76 lakh, slightly down from ₹153.79 lakh in Q1FY26.

Earnings per share (EPS) stood at ₹0.76, an increase from ₹0.71 in the same quarter last year. The company’s paid-up equity share capital remained unchanged at ₹2,447.34 lakh.

What the Numbers Show

The improvement in net profit was primarily driven by revenue growth rather than margin expansion. Operating margin increased slightly to 2.79% from 2.57% in Q1FY26, indicating modest efficiency gains despite a significant rise in purchase of stock-in-trade, which jumped to ₹3,534.48 lakh from ₹1,472.89 lakh year-on-year. This surge in inventory purchases suggests preparation for larger recycling contracts or strategic stockpiling, though it contributed to higher total expenses. Cost of materials consumed decreased significantly to ₹811.80 lakh from ₹1,895.94 lakh, offsetting some of the inventory build-up costs.

Key Ratios and Balance Sheet Metrics

The company’s debt-equity ratio rose to 0.86 from 0.76 in Q1FY26, reflecting increased leverage relative to equity. However, the interest service coverage ratio improved to 2.34 from 2.95, showing adequate earnings to cover interest obligations. Net worth increased to ₹9,800.88 lakh from ₹9,371.93 lakh in the previous comparable period.

The current ratio remained stable at 2.27, indicating consistent short-term liquidity. The debtors turnover ratio declined to 0.65 from 1.48, suggesting slower collection cycles or changes in credit terms, while inventory turnover improved to 3.03 from 0.95, reflecting faster movement of goods relative to average inventory levels.

Regulatory Compliance Update

Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, VMS Industries intimated the publication of its Q1FY27 financial results in newspapers. The advertisement was published on August 13, 2026, in Indian Express (English language, National Daily) and Financial Express (Regional language Gujarati). The Company Secretary & Compliance Officer, Hemal Patel, signed the intimation dated August 14, 2026, confirming that the results were approved by the Board on August 12, 2026, and filed with stock exchanges on the same day.