Maha Rashtra Apex Corporation Reports Significant Profit Growth in Q1 FY2026, Approves Key Board Changes

Maha Rashtra Apex Corporation Limited (MRACL) has reported a substantial increase in profits for the first quarter of the fiscal year 2025-26, alongside several important board decisions, as per the company's recent regulatory filing.

Financial Performance

The company's unaudited standalone financial results for Q1 FY2026 (ended June 30, 2025) show a remarkable turnaround:

On a consolidated basis, the company's performance was even more impressive:

The substantial increase in profit is primarily attributed to exceptional items and the company's share of profit from associates.

Key Board Decisions

1. Internal Auditor Re-appointment: Ms. Nita J. Desai has been re-appointed as the Internal Auditor for FY 2025-26. Ms. Desai, a Chartered Accountant with over 23 years of experience, has been serving as the company's Internal Auditor.

2. New Independent Director: Mr. Nagarajan Sivaramakrishnan (DIN: 03060429) has been appointed as a Non-Executive Independent Director, effective August 13, 2025, subject to shareholder approval. Mr. Sivaramakrishnan brings over 25 years of experience in the private sector, including leadership roles in major consumer companies.

3. Corporate Office Relocation: The Board has approved shifting the Corporate Office from Syndicate House, Manipal to new premises at Chitrakala, Manipal - 576104. This move is aimed at better accommodating current and future operational requirements.

Auditor's Observations

The company's auditors, H G Sarvaiya and Co., have issued a qualified opinion on the financial results. They noted that MRACL has not provided for delayed period interest cost on deposits amounting to ₹11.75 lakhs for the quarter, with a cumulative unprovided interest of ₹345.50 lakhs from October 2019 to June 2025.

Regulatory Compliance

It's worth noting that the Reserve Bank of India (RBI) had cancelled MRACL's Certificate of Registration to act as a Non-Banking Financial Company on June 13, 2002. Additionally, as per a scheme sanctioned by the Hon'ble High Court of Karnataka, all deposits/bonds were to be repaid by June 15, 2009 / September 15, 2009. The outstanding principal and accrued interest payable to the public amounts to ₹1,367.81 lakhs. In FY 2023-24, the company deposited ₹1,395.75 lakhs with the Hon'ble High Court of Karnataka.

The financial results and board decisions were approved at a Board meeting held on August 13, 2025, which commenced at 11:00 a.m. and concluded at 3:30 p.m.

Investors and stakeholders should note that while the company has shown significant profit growth, the auditor's qualifications and ongoing regulatory matters should be considered when evaluating the company's overall financial position and future prospects.