Lakhotia Polyesters FY26 Results and Board Changes

Total Income stood at Rs 19.76 crore; Net Profit declined to Rs 2.38 crore.

Reader Takeaway: Sharp revenue decline and auditor resignation signal high monitoring required for Lakhotia Polyesters (India) stakeholders.

What just happened

Lakhotia Polyesters (India) Ltd released its Annual Report for the fiscal year ended March 31, 2026, revealing a significant downturn in financial performance. Total income dropped to Rs 19.76 crore, a steep decline from Rs 72.17 crore in the previous fiscal year. Net profit after tax fell to Rs 2.38 crore, down from Rs 6.02 crore in FY25, bringing the basic EPS down to Rs 2.27.

Why this matters

The company has cited short-term operational challenges for the performance slump. Additionally, the sudden change in statutory auditors, with M/s. Sharp Arth & Co. LLP resigning in July 2026, adds complexity to the corporate governance narrative. Shareholders are now watching for the upcoming AGM on September 21, 2026, to assess management’s turnaround strategy.

Governance and Board Updates

The Board of Directors has undergone several shifts. Ms. Kajal Dubey was appointed as an Additional Director (Independent), while Mr. Murli Harishkumar Lakhotia joined as an Additional Director (Non-Independent). Mr. Nikunj Shrawan Bihani has resigned from the board. Furthermore, M/s. Praveen Purohit & Associates has been proposed to fill the vacancy left by the departing auditor.

Risks to watch

Investors should closely track the impact of ongoing operational constraints on margins. The change in auditors immediately following a difficult fiscal year requires scrutiny regarding the audit process and internal reporting controls. No dividend has been declared, reflecting the company’s current focus on liquidity preservation.

What to track next

Watch for discussions at the AGM scheduled for September 21, 2026, regarding the formal approval of the new auditor and management’s specific plans to restore operational efficiency.