Vaxfab Enterprises Limited (VEL) has announced a change in its statutory auditor. The Board of Directors, in a meeting held on November 14, 2025, accepted the resignation of SSRV & Associates and appointed Chandabhoy & Jassoobhoy as the new statutory auditor, subject to shareholder approval.

Resignation of SSRV & Associates

SSRV & Associates, appointed as the statutory auditor for a five-year term from FY 2022-23 to 2026-27, tendered their resignation citing pre-occupation with other assignments. The firm completed its last obligation to VEL by conducting a limited review for the quarter ended September 30, 2025, with the report submitted on November 13, 2025.

In their resignation letter, SSRV & Associates stated:

"We hereby inform that due to our pre-occupation in other assignments, we are not in the position to devote our time to the affairs of the Company. Accordingly, we are submitting our resignation as the Statutory Auditor of the Company with immediate effect."

The Board noted that there were no other reasons for the resignation beyond those mentioned in the auditor's letter.

Appointment of Chandabhoy & Jassoobhoy

To fill the casual vacancy created by SSRV & Associates' resignation, the Board has appointed Chandabhoy & Jassoobhoy, Chartered Accountants (FRN: 101648W), as the new statutory auditor. This appointment is effective from November 14, 2025, and will continue until the conclusion of the Annual General Meeting to be held in 2026, subject to shareholder approval.

About the New Auditor

Chandabhoy & Jassoobhoy, established in 1908, brings over a century of experience to VEL. The firm offers a comprehensive range of services, including:

• Audit & Assurance (statutory audits, internal audits)
• Accounting, Payroll & Outsourced services for small & medium businesses
• Direct & Indirect Taxation (corporate & individual)
• Corporate Finance, Business Advisory, Foreign Investment & Project Financing
• Company Law & Compliance services

The firm describes itself as "a one-stop shop – a destination that serves all the business and commercial requirements of a client."

Regulatory Compliance

This change in auditor has been disclosed in compliance with clause (7A) of Para A in Part A of Schedule III under Regulation 30(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided all necessary details as required by the regulatory bodies.

Investors and stakeholders should note that this change in statutory auditor is a part of normal corporate governance processes and does not indicate any irregularities or concerns with the company's financial statements or operations.

Vaxfab Enterprises Limited , a textile trading company based in Ahmedabad, has reported a significant net loss of ₹224.99 crore for the quarter ended September 30, 2025 (Q2 FY26). This marks a stark contrast to the profit of ₹38.73 crore recorded in the previous quarter. The financial results, approved by the company's board on November 13, 2025, reveal a complex picture of the company's performance.

Revenue Growth Amidst Losses

Despite the substantial loss, Vaxfab Enterprises saw a notable increase in its total income. The company's revenue from operations surged to ₹5,504.09 crore in Q2 FY26, compared to ₹1,457.08 crore in the previous quarter. This significant jump in revenue indicates a considerable expansion in business activity during the period.

Financial Highlights

Operational Challenges

The dramatic shift from profit to loss can be attributed to a substantial increase in expenses. The company's total expenses for Q2 FY26 stood at ₹5,432.00 crore, a significant rise from ₹1,343.78 crore in the previous quarter. This surge in expenses outpaced the growth in revenue, leading to the reported loss.

Inventory and Trade Receivables

Vaxfab Enterprises reported a substantial increase in inventories, rising to ₹8,238.19 crore as of September 30, 2025, compared to ₹6,627.27 crore at the end of the previous financial year. This increase in inventory levels may indicate challenges in sales conversion or a strategic build-up for anticipated future demand.

Cash Flow and Liquidity

The company's cash and cash equivalents stood at ₹121.96 crore at the end of Q2 FY26, showing an improvement from ₹24.35 crore at the end of the previous financial year. This increase in liquidity may provide some cushion as the company navigates through its current operational challenges.

Market Position and Outlook

While the loss is concerning, the substantial increase in revenue suggests that Vaxfab Enterprises is expanding its market presence in the textile trading sector. However, the company will need to address its rising expenses and operational inefficiencies to return to profitability.

The board of directors and management will likely focus on cost optimization strategies and improving operational efficiency in the coming quarters. Investors and market analysts will be closely watching how the company manages its inventory levels and converts its increased revenue into profitability.

As Vaxfab Enterprises continues to operate in the dynamic textile trading industry, its ability to balance growth with profitability will be crucial for its future performance and market position.