Akar Auto Industries Ltd has disclosed to the Bombay Stock Exchange that it faces a regulatory breach regarding the appointment of a woman director, with the company seeking a waiver of any resulting fine. According to the latest regulatory filing, the delay in appointing a woman director stemmed from the time required to identify and select a suitable candidate. The company has now filled the position and confirmed compliance with Regulation 17(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made in response to an email from the BSE dated May 27, 2026, regarding the non-compliance. The company's Board of Directors has committed to taking necessary steps to ensure timely adherence to applicable regulatory requirements moving forward.
According to the latest unaudited financial results reported by Akar Auto Industries, the company experienced a significant decline in profitability during the quarter ended June 30, 2026. The automotive components manufacturer's standalone net profit dropped 74.18% to ₹47.05 lakh compared to ₹181.54 lakh in the corresponding quarter of the previous financial year. This substantial decline reflects challenging market conditions or operational issues during the quarter, with the company's profit before tax falling 51% to ₹102.32 lakh from ₹210.07 lakh year-on-year. The latest data from Business Standard confirms this significant profit contraction, with the company's financial performance showing continued pressure on bottom-line results.
The company's revenue from operations declined 13.6% to ₹7,812.04 lakh in Q1 FY27 compared to ₹9,043.74 lakh in the same quarter of the previous financial year. As reported in the unaudited financial results, this revenue contraction indicates reduced demand or operational challenges that impacted the company's top-line performance during the quarter. The total income for the quarter was ₹7,819.68 lakh, including other income of ₹7.64 lakh, compared to ₹9,049.77 lakh in Q1 FY26. The latest figures from Business Standard show a slight variation in revenue figures, with the company reporting sales decline of 13.62% to ₹78.12 crore in the quarter ended June 2026, compared to ₹90.44 crore during the previous quarter ended June 2025.
The financial results reveal a significant shift in tax dynamics that contributed to the accelerated profit decline. Total tax expenses amounted to ₹55.26 lakh, comprising current tax of ₹17.08 lakh and deferred tax of ₹38.19 lakh, compared to ₹28.53 lakh in Q1 FY25. The deferred tax expenses contributed ₹38.19 lakh this quarter, up from a deferred tax benefit of ₹10.06 lakh in the same period last year. The company's operating profit margin (OPM) stood at 7.40% in the quarter ended June 2026, compared to 7.12% in the corresponding quarter of the previous year. The PBDT (Profit Before Depreciation and Tax) declined 21% to ₹2.63 crore from ₹3.34 crore year-on-year.
Despite the significant profit decline, the Board of Directors approved a 6% dividend for FY26, equivalent to ₹0.30 per equity share of face value ₹5 each, for the financial year 2025-2026. This recommendation is subject to shareholder approval at the upcoming Annual General Meeting scheduled for September 29, 2026. The Board also approved the re-appointment of M/s Singh Mundada & Associates as Statutory Auditors for a second consecutive term of five years, from the conclusion of the 37th Annual General Meeting to the 42nd. The auditors issued their limited review report on August 12, 2026, stating that nothing came to their attention to suggest the unaudited standalone financial results do not comply with SEBI Listing Regulations or contain material misstatements.
