Ravi Kumar Distilleries Limited (RKDL), a prominent player in the Indian Made Foreign Liquor (IMFL) sector, has announced significant management changes and released its financial results for the first quarter.

Leadership Continuity

The company's board of directors, in a meeting held on August 6, approved the reappointment of two key executives:

• Mr. R V Ravikumar has been reappointed as Managing Director for a three-year term, effective April 1, 2026.
• Mr. Badrinath S Gandhi has been reappointed as Whole-time Director, also for a three-year term starting April 1, 2026.

Both reappointments are subject to shareholder approval at the upcoming Annual General Meeting (AGM).

Q1 Financial Performance

RKDL reported its unaudited financial results for the quarter ended June 30:

The company's revenue from operations decreased by 41.70% year-over-year, while net profit declined by 28.70%. Despite the challenging quarter, RKDL managed to maintain profitability.

Other Key Developments

New Auditor Appointment

The board has approved the appointment of M/s. Ramanand & Associates, Chartered Accountants, as the company's Statutory Auditors for a five-year term starting FY 2025-26, subject to shareholder approval.

Annual General Meeting

RKDL's 32nd AGM is scheduled for September 19, at the company's registered office in Puducherry.

Book Closure

The Register of Members and Share Transfer Books will remain closed from September 13 to 19, for the purpose of the AGM.

Financial Position

As of March 31, RKDL reported:

• Equity Share Capital: Rs. 2,400.00 lakhs
• Reserves (excluding revaluation reserves): Rs. 1,790.14 lakhs

The company continues to operate in a single reportable segment: Manufacturing of Indian Made Foreign Liquor (IMFL).

Investors and stakeholders should note that the financial results have been prepared in accordance with Indian Accounting Standards (Ind-AS) and have been reviewed by the company's auditors. The auditors have raised certain qualifications regarding recoverable amounts under dispute and investments, which the company is addressing through various legal and regulatory channels.

Ravi Kumar Distilleries Limited (RKDL), a manufacturer of Indian Made Foreign Liquor (IMFL), has announced its financial results for the first quarter ended June 30, 2025, along with several key corporate decisions.

Financial Performance

For Q1 FY26, RKDL reported:

The company's revenue from operations decreased by 41.70% year-over-year, while net profit declined by 28.70%. Despite the challenging quarter, RKDL managed to maintain profitability, albeit at a lower level compared to the same period last year.

Key Corporate Decisions

The Board of Directors, in their meeting held on August 6, 2025, made several important decisions:

1. Reappointment of Key Executives: The Board approved the reappointment of Mr. R V Ravikumar as Managing Director and Mr. Badrinath S. Gandhi as Whole-time Director for three-year terms, effective from April 1, 2026. These reappointments are subject to shareholder approval at the upcoming Annual General Meeting (AGM).

2. New Statutory Auditors: M/s. Ramanand & Associates, Chartered Accountants, have been appointed as the company's statutory auditors for a period of five years, starting from FY 2025-26. This appointment is also subject to shareholder approval at the AGM.

3. Annual General Meeting: The 32nd AGM of RKDL is scheduled for September 19, 2025, at the company's registered office in Puducherry.

Auditor's Review Report

The independent auditor's review report highlighted several concerns:

1. Disputed recoverable amounts of Rs. 2,900.25 lakhs classified as 'Other Non-Current Assets'.
2. Unresolved issues related to investments in Liquor India Limited and transactions with Lemonade Shares & Securities Private Limited.
3. Lack of confirmations for certain financial assets and liabilities.
4. Pending statutory dues amounting to Rs. 257.87 lakhs, with no provision for interest on delayed payments.

Looking Ahead

While RKDL faces challenges, as evidenced by the decline in revenue and profit, the reappointment of key executives and the appointment of new auditors suggest that the company is taking steps to strengthen its governance and operational structure. Shareholders and investors will likely be keen to hear management's strategy for addressing the auditor's concerns and improving financial performance at the upcoming AGM.

The company's ability to navigate these challenges and capitalize on opportunities in the IMFL sector will be crucial for its future growth and stability.