Chaman Lal Setia Exports Reports FY26 Profit Growth to Rs 114.78 Crore

Revenue for FY26 stands at Rs 1,439.58 crore, while the board recommends a Rs 3 per share dividend.

Reader Takeaway: Improved profitability driven by cost controls contrasts with auditor concerns over specific trade receivables and payables.

What just happened

Chaman Lal Setia Exports Ltd has scheduled its 32nd Annual General Meeting for September 28, 2026, to be held via video conference. The board has recommended a final dividend of Rs 3 per share, with September 21, 2026, set as the record date.

Why this matters

The company demonstrated resilience with a profit increase to Rs 114.78 crore compared to Rs 102.88 crore in the previous fiscal, despite a decline in top-line revenue to Rs 1,439.58 crore. However, the auditor, M/s. Rajesh Kapoor & Co., has issued a qualified opinion regarding accounting practices related to trade receivables and MSME interest liabilities.

The Auditor’s Qualified Opinion

The auditor raised three primary points of concern:

• Disputed trade receivables of Rs 1.81 crore, which have not been written off.
• Non-disputed trade payables of Rs 16.34 lakh, which have not been written back.
• A failure to provide for interest payable to MSME entities amounting to Rs 8.14 lakh.

Management stated that the disputed receivables are largely covered under ECGC policies, and recovery processes are ongoing for domestic dues.

Management Commentary and Outlook

Management highlighted that the company maintained strong export momentum, with exports accounting for 88% of total revenue. Efficiency gains were credited to rigorous cost-control initiatives implemented throughout the year.

What to track next

Investors should monitor the resolution of the qualified audit items, particularly the management's commitment to resolving the MSME interest and trade payable issues in the upcoming year.