Detailed Coverage

Shakti Press Ltd Sees Revenue Surge, Faces Auditor Scrutiny

Shakti Press Ltd's revenue from operations for FY 2025-26 reached ₹78.30 crore, a substantial increase from ₹13.03 crore in the previous fiscal year. Profit After Tax (PAT) rose to ₹1.65 crore from ₹0.07 crore, with Earnings Per Share (EPS) at ₹4.68 compared to ₹0.19.

Reader Takeaway: New agri division drives strong revenue growth, but auditor concerns signal governance risks.

What just happened

Shakti Press Ltd has reported its financial results for FY 2025-26, showing a dramatic increase in revenue and profit. The company has also officially launched its Agri Division, which has become a major contributor to its performance.

Why this matters

The substantial revenue growth indicates successful business expansion, primarily driven by the new Agri Division. However, the concurrent red flags raised by the statutory auditors about the company's governance and accounting practices present a significant concern for investors. These issues could potentially impact regulatory compliance, financial reporting accuracy, and long-term business sustainability.

The backstory

The company's operating structure has evolved with the introduction of the Agri Division. This new segment generated ₹68.06 crore in revenue and ₹2.26 crore in profit before tax, significantly contributing to the overall financial performance. The Paper Division contributed ₹10.24 crore in revenue and ₹3.54 crore in profit before tax.

What changes now

Investors will be closely watching how the management addresses the auditors' concerns. Failure to rectify these governance and accounting issues could lead to further regulatory scrutiny and potentially impact the company's reputation and future fundraising efforts. The company also undertook corporate actions, including the allotment of 94,75,000 convertible warrants at ₹27.25 each and received approval for a Rights Issue in March 2026 to fund expansion and working capital.

Risks to watch

The primary risks highlighted are the auditor's remarks regarding non-compliance with Section 138 of the Companies Act, 2013 (failure to appoint an internal auditor), incorrect depreciation calculations not adhering to Ind AS 16, and non-recognition of deferred tax assets/liabilities contrary to Ind AS 12. Furthermore, the company failed to file crucial regulatory documents like financial statements in Form AOC-4 XBRL for FYs 2021-22 and 2022-23, and the Annual Return in Form MGT-7 for FY 2023-24.

Peer comparison

While specific peer data isn't provided in the filing, Shakti Press Ltd's significant revenue growth in FY26, particularly from its Agri Division, positions it for potential market share gains if operational and governance issues are resolved. Competitors in both the paper and agri sectors will be closely observing its trajectory.

Context metrics (time-bound)

• FY 2025-26 Revenue: ₹78.30 crore (vs. ₹13.03 crore in FY 2024-25)
• FY 2025-26 PAT: ₹1.65 crore (vs. ₹0.07 crore in FY 2024-25)
• Agri Division Revenue: ₹68.06 crore
• Related Party Transactions (FY 2025-26): ₹8.57 crore

What to track next

Investors should track the company's actions in its upcoming Annual General Meeting (AGM) concerning the auditors' qualifications. Monitoring regulatory filings and compliance status will be crucial.