Machhar Industries Ltd

AGM & governance

• 18th AGM fixed for 22 September 2026 at 2:30 PM.
• Cut-off date for voting: 15 September 2026.
• Remote e-voting: 19-21 September 2026; InstaVote facility provided.
• Notice and Annual Report to be sent electronically to registered Members.
• Board comprises six Directors; no changes during the year.
• Related party omnibus approval for professional services up to ₹5 lakh.
• Statutory Auditors re-appointed for the next AGM period.

Financial highlights

• Revenue from operations: ₹1,555.97 lakh.
• Other income: ₹25.70 lakh.
• Total revenue: ₹1,581.67 lakh.
• Profit before tax: ₹84.00 lakh; Tax: ₹25.68 lakh.
• Profit after tax: ₹58.32 lakh.
• Total comprehensive income: ₹54.99 lakh.
• Earnings per share: ₹7.87.
• Dividend declared: none for FY2025-26.

Segment performance

• Explosive division revenue: ₹387.72 lakh; Transportation: ₹689.62; Adblue: ₹478.63.
• Total segment revenue: ₹1,555.97 lakh.
• Segment profit before tax: ₹84.00 lakh; Segment profit before depreciation/interest: ₹74.92 lakh.
• Domestic market revenue, with no material international exposure.

Capital structure & liquidity

• Authorized capital ₹1.00 crore; issued & paid-up ₹74.09 lakh.
• Equity share capital: ₹74.09 lakh.
• Borrowings: Non-current ₹28.65 lakh; Current ₹216.20 lakh; Gross debt ₹244.86 lakh.
• Cash & cash equivalents: ₹353.77 lakh; Net debt: -₹173.65 lakh.
• Net debt/equity ratio: -0.18.
• Net cash from operating activities: ₹100.84 lakh.
• Net cash flow from investing: ₹-18.31 lakh; financing: ₹-8.38 lakh.
• Net increase in cash: ₹73.95 lakh; closing cash ₹353.77 lakh.

Related party & JV

• Joint venture Nirvan Nutra Private Limited; 50% holding with representation on Board.
• JV under review for commercial viability; operations not yet commenced as planned.
• Advances to JV: ₹35.09 lakh; JV investment: ₹0.50 lakh.
• Related party transactions include director salaries and sales/receipts with promoter group entities.
• Outstanding balances with related parties include Nirvan ₹35.09 lakh; Apt Packaging ₹23.02 lakh.

Audit & governance

• Statutory auditors: Ashok R Majethia & Co; unmodified opinion on standalone & consolidated.
• Secretarial auditor: Ganesh Palve; notable observation on designated depository not appointed.
• Internal financial controls deemed adequate; no material weaknesses observed.
• Board meetings held six times in the year; governance framework largely compliant.

Risks & outlook

• Raw material price volatility (urea) and FX movements may impact margins.
• Regulatory compliance and approvals for JV projects remain pivotal to timing.
• Management seeks expansion in AdBlue segment and broader customer base.

Financial results and audit status

• Unaudited standalone and consolidated quarterly results for quarter ended 30 June 2026 approved.
• Limited Review Report by Ashok R. Majethia & Co; MD signed results.
• Annexures B–D Not Applicable; Annexure E contains LR declaration.
• Auditor's Limited Review Report provides limited assurance; no audit opinion expressed.
• Declaration confirms LR unmodified for standalone and consolidated results.

Status of dematerialisation

• Dematerialisation requests received were confirmed to depositories.
• Securities dematerialised were listed on the stock exchanges where earlier issues are listed.
• Certificates received for dematerialisation were mutilated and cancelled after due verification.
• Depository name substituted as registered owner in records within prescribed timelines.

Meeting Details

• Date: 16 July 2026; Time: 12:30 PM; Location: not disclosed.

Key Agenda Items

• Approve unaudited standalone and consolidated results for quarter ended 30 June 2026, along with other regular business.

Other Notes

• Trading window closed from July 1, 2026; reopens 48 hours after results declaration.

FY26 standalone results

• 📊 Revenue from operations rose 10.3% YoY to ₹1,555.97 lakh.
• 📊 Total income fell 1.6% YoY to ₹1,581.67 lakh.
• 📊 PBT rose to ₹84.20 lakh from ₹18.89 lakh.
• 📊 PAT rose to ₹58.52 lakh from ₹15.38 lakh.
• 📊 FY26 basic and diluted EPS was ₹7.90, versus ₹2.08 last year.
• 📊 Q4FY26 revenue was ₹442.57 lakh, up 10.2% YoY.
• 📊 Q4FY26 PAT was ₹16.02 lakh, versus ₹7.85 lakh a year ago.

FY26 consolidated results

• 📊 Consolidated revenue from operations rose 0.5% YoY to ₹1,555.97 lakh.
• 📊 Consolidated total income fell 1.6% YoY to ₹1,581.67 lakh.
• 📊 Consolidated PBT rose to ₹84.00 lakh from ₹18.67 lakh.
• 📊 Consolidated PAT rose to ₹58.32 lakh from ₹15.16 lakh.
• 📊 Consolidated FY26 basic and diluted EPS was ₹7.87, versus ₹(0.66) last year.
• 📊 Q4FY26 consolidated revenue was ₹442.57 lakh, up 7.8% YoY.
• 📊 Q4FY26 consolidated PAT was ₹16.07 lakh, versus ₹7.74 lakh a year ago.

Margins and costs

• 📊 Raw material cost rose to ₹290.98 lakh in FY26 from ₹268.82 lakh.
• 📊 Employee benefit expense fell to ₹141.72 lakh from ₹194.89 lakh.
• 📊 Finance costs declined to ₹16.25 lakh from ₹24.67 lakh.
• 📊 Other expenses were ₹1,010.50 lakh, down from ₹1,056.51 lakh.
• 📊 Total expenses fell 5.7% YoY to ₹1,497.47 lakh.

Segments

• 📊 Explosives revenue was ₹387.72 lakh in FY26, versus ₹377.55 lakh.
• 📊 Transportation revenue was ₹689.62 lakh, down from ₹718.89 lakh.
• 📊 Adblue revenue was ₹478.63 lakh, up from ₹471.67 lakh.
• 📊 Explosives segment loss narrowed to ₹24.16 lakh from ₹106.37 lakh.
• 📊 Transportation segment profit was ₹67.39 lakh, broadly flat YoY.
• 📊 Adblue segment profit fell to ₹31.69 lakh from ₹42.97 lakh.

Balance sheet and cash

• 📊 Cash and cash equivalents rose to ₹353.27 lakh from ₹279.60 lakh.
• 📊 Total assets increased to ₹1,369.81 lakh from ₹1,287.87 lakh.
• 📊 Equity rose to ₹971.79 lakh from ₹917.72 lakh.
• 📊 Current borrowings increased to ₹215.95 lakh from ₹189.30 lakh.
• 📊 Non-current borrowings declined to ₹28.65 lakh from ₹47.44 lakh.
• 📊 Inventory increased to ₹122.74 lakh from ₹100.50 lakh.
• 📊 Trade receivables rose to ₹161.57 lakh from ₹157.75 lakh.

Cash flow

• 📊 Operating cash flow improved to ₹100.37 lakh from ₹19.42 lakh.
• 🧱 Capex spend was ₹42.36 lakh in FY26.
• 📊 Investment cash outflow narrowed to ₹18.32 lakh from ₹96.86 lakh.
• 📊 Short-term borrowings generated ₹26.65 lakh of cash in FY26.

Audit and governance

• 📍 Statutory auditors issued an unmodified opinion on standalone and consolidated results.
• 📊 No interim dividend was declared and paid during the year.
• 📊 No loan defaults on banks or financial institutions were reported.
• 📊 Internal financial controls were reported adequate and operating effectively.

Related party transactions

• 📊 Managing Director remuneration was ₹17.26 lakh in the half year.
• 📊 Marketing manager salary to Utkarsh Machhar was ₹9.71 lakh.
• 📊 Rent paid to Utsav Polymers Pvt Ltd was ₹9.90 lakh.
• 📊 Sale of goods or services to Utsav Logistics Pvt Ltd was ₹3.09 lakh.

Business model

• 📊 The company operates explosives, transportation, and Adblue divisions.
• 📊 It also reports a joint venture contribution in consolidated results.

Director Re-appointment

• Mr. Vyankat W. Katkar re-appointed as Whole-Time Director for 18 months from April 1, 2026
• Re-appointment subject to shareholders' approval
• Mr. Katkar has over a decade of experience in chemical industries
• He oversees production and factory operations
• Mr. Katkar is not related to any other director
• He is not debarred from holding director office by any authority

Joint Venture Company

• Board deferred strike off proposal of Joint Venture Company for one year

Independent Director Proficiency

• Mr. Pradip Patel cleared Independent Directors Databank proficiency test