Vivid Mercantile Limited has announced its financial results for the second quarter of fiscal year 2025-26, showcasing remarkable growth in both profit and revenue. The company's performance highlights its strong position in the market and effective financial management.

Financial Highlights

Quarterly Performance

Vivid Mercantile reported a significant increase in its quarterly profit, which rose to ₹91.24 crore for the quarter ended September 30, 2025, compared to ₹24.99 crore in the same period last year. This represents a remarkable year-on-year growth of 265.11%.

The company's revenue from operations also saw a substantial rise, reaching ₹136.57 crore for the quarter, up from ₹32.86 crore in the corresponding quarter of the previous year, marking a 315.61% increase.

Half-Yearly Results

For the half-year period ended September 30, 2025, Vivid Mercantile achieved a profit of ₹212.59 crore on a revenue of ₹305.81 crore, indicating strong performance in the first half of the fiscal year.

Balance Sheet Strength

The company's financial position has shown improvement, with total assets increasing to ₹6,514.84 crore as of September 30, 2025, up from ₹5,919.71 crore at the end of March 2025. This growth in assets reflects the company's expanding operations and financial stability.

Borrowings and Liquidity

Current borrowings rose to ₹578.36 crore from ₹250.54 crore as reported in March 2025. This increase in borrowings may indicate the company's efforts to fund its growth initiatives or manage working capital requirements.

Corporate Governance

The Board of Directors of Vivid Mercantile Limited approved these unaudited financial results during their meeting held on October 10, 2025. The results were reviewed by the Audit Committee before being presented to the Board, adhering to good corporate governance practices.

Conclusion

Vivid Mercantile Limited's Q2 FY26 results demonstrate robust growth across key financial metrics. The significant increase in profit and revenue, coupled with a stronger balance sheet, positions the company well for continued success in the coming quarters. Investors and stakeholders may find these results encouraging, as they reflect the company's ability to capitalize on market opportunities and deliver strong financial performance.

Vivid Mercantile announced the resignation of its statutory auditor, M/S AKGVG & Associates, Chartered Accountants, effective August 12, 2025. The resignation comes as a result of a significant restructuring within the auditing firm.

Reasons for Resignation

The primary reason cited for the resignation is the demerger of M/s. Shah Karia & Associates from AKGVG & Associates. Additionally, the retirement of a key relationship partner from AKGVG & Associates has contributed to the firm's decision to step down from its role as Vivid Mercantile's statutory auditor.

Tenure and Last Report

AKGVG & Associates was appointed as the statutory auditor on February 26, 2025, with their term originally scheduled to conclude at the end of the Annual General Meeting for the fiscal year 2024-25. The firm's last submitted report was a Limited Review Report for the quarter ended June 30, 2025.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Vivid Mercantile promptly informed the BSE Limited of this material event. The company has provided the necessary disclosures as required by SEBI circular No. SEBI/HO/CFD/CFD-PoD1/P/CIR/2023/123 dated July 13, 2023.

Management Statement

Satishkumar Ramanlal Gajjar, Managing Director of Vivid Mercantile, signed the regulatory filing, ensuring transparency in communication with shareholders and regulatory bodies.

Financial Performance

While the auditor change is a significant event, it's worth noting Vivid Mercantile's recent financial performance. For the quarter ended June 30, 2025, the company reported:

Despite a significant decrease in total income, the company has managed to increase its profitability substantially compared to the same quarter in the previous year.

Next Steps

Vivid Mercantile will now need to appoint a new statutory auditor to ensure continued compliance with regulatory requirements and maintain the integrity of its financial reporting. Shareholders and investors will likely be keen to see who the company appoints as its new auditor and how smoothly the transition process unfolds.

The company's ability to maintain strong corporate governance practices during this transition will be crucial for maintaining investor confidence and ensuring continued transparency in its financial reporting.