Axel Polymers Limited , a leading player in the polymer industry, has announced a significant capital raise through a preferential share issue and released its financial results for the first quarter.

Preferential Share Issue

The Board of Directors of Axel Polymers has approved a preferential issue of 28,28,891 equity shares at ₹45 per share, which includes a face value of ₹10 and a premium of ₹35. This move is set to raise ₹12.73 crore from 57 investors. The issue, subject to shareholder approval, will be conducted under the public category in compliance with SEBI regulations.

Key points of the preferential issue include:

• Total number of shares: 28,28,891
• Issue price: ₹45 per share (₹10 face value + ₹35 premium)
• Total amount to be raised: ₹12,73,00,095
• Number of investors: 57

The majority of the proposed allottees are new investors with no pre-issue shareholding, while some existing shareholders will increase their stakes. An Extraordinary General Meeting is scheduled for August 20, 2025, to seek shareholder approval for this fundraising initiative.

Q1 Financial Results

Axel Polymers has also released its unaudited financial results for the quarter ended June 30. Here are the key highlights:

The company has shown a turnaround in its quarterly performance, reporting a profit of ₹4.39 lakhs in Q1 FY2026, compared to a loss of ₹53.05 lakhs in the same quarter of the previous year. However, it's worth noting that the profit has decreased significantly from the ₹223.03 lakhs reported in the previous quarter (Q4 FY2025).

Other Developments

The company's statutory auditors, M/s. Mukund and Rohit, Chartered Accountants, have conducted a limited review of the financial results. They noted that the Goods and Service Tax Authorities carried out search proceedings at the company's factory premises on July 3, 2024, for alleged wrongful availment and passing on of Input Tax Credit (ITC). The matter is still under investigation, and no formal Show Cause Notice has been issued as of the reporting date. Axel Polymers has deposited ₹1 crore under protest as a penalty during the course of this investigation.

The Board meeting to approve these matters was held on July 24, 2025, commencing at 4:22 PM and concluding at 4:53 PM.

Axel Polymers Limited continues to operate in a single business segment. The company's management remains focused on improving operational efficiency and exploring growth opportunities in the polymer industry.

Axel Polymers Limited , a manufacturer of engineering compounds, has announced its unaudited financial results for the first quarter of the fiscal year 2025-26, showing a turnaround to profit despite ongoing regulatory challenges.

Financial Performance

The company reported a significant change in its financial performance for the quarter ended June 30, 2025:

Despite a substantial decrease in revenue, Axel Polymers managed to turn a profit, marking a notable improvement from the loss in the same quarter of the previous year.

Operational Highlights

• The company's total expenses for the quarter stood at Rs. 1,166.52 lacs, significantly lower than the Rs. 4,280.39 lacs in the corresponding quarter last year.
• Cost of materials consumed decreased to Rs. 812.54 lacs from Rs. 3,225.56 lacs in Q1 FY25.
• Employee benefits expense saw a slight increase to Rs. 94.28 lacs compared to Rs. 88.15 lacs in the previous year's quarter.

Regulatory Challenges

Axel Polymers is currently facing a regulatory hurdle:

• The company is under investigation by GST authorities for alleged wrongful availment of Input Tax Credit (ITC).
• As a precautionary measure, Axel Polymers has deposited Rs. 1 crore under protest as a penalty during the ongoing investigation.
• No formal show cause notice has been issued to the company as of the reporting date.

Corporate Governance

The Board of Directors approved the quarterly results at a meeting held on July 24, 2025. The meeting commenced at 04:22 PM and concluded at 04:53 PM. The financial results were reviewed by the statutory auditors, M/s. Mukund and Rohit, Chartered Accountants.

Outlook

While the company has shown resilience by turning a profit in a challenging quarter, the ongoing GST investigation and the significant drop in revenue may pose concerns for investors. The management's ability to navigate these challenges while maintaining profitability will be crucial in the coming quarters.

Axel Polymers Limited continues to operate in a single segment, focusing on engineering compounds. The company's performance in subsequent quarters will be closely watched to determine if this turnaround is sustainable amidst the regulatory scrutiny and market conditions.