Libas Consumer Products Approves Financial Results, Plans Right Issue of Shares

Libas Consumer Products Approves Financial Results, Plans Right Issue of Shares​

Libas Consumer Products Limited announced significant corporate and financial updates following a Board meeting held on June 2, 2026. The Board approved the audited financial results for the quarter and financial year ended March 31, 2026, alongside key strategic decisions including a planned fundraise via a rights issue and an increase in authorized share capital.

Key Financial Approvals and Strategic Initiatives​

The Board of Directors approved the Audited Financial Results for both standalone and consolidated entities for the quarter and financial year ended March 31, 2026.

In terms of corporate funding, the Board also sanctioned the raising of funds by issuing equity shares of face value ₹10/- each. This right issue is set for an aggregate amount not exceeding ₹14.50 crore and will be offered to eligible equity shareholders.

Furthermore, the company approved two structural changes:
1. The increase of the Authorised share capital from ₹28 crore to ₹40.60 crore, which remains subject to the approval of the members via a postal ballot.
2. The establishment of a Rights Issue Committee comprising Mr. Riyaz Ganji, Mr. Nishant Mahimtura, and Mr. Ashish Dubey, empowered to execute the proposed rights issue.

Governance and Audit Appointments​

The Board also addressed governance matters, appointing M/s Sabadra & Associates, Chartered Accountants, as the Internal Auditor of the Company for the financial year 2026-2027. Separately, M/s SARK & Associates LLP, Company Secretaries, were appointed as the scrutinizer to conduct the postal ballot for the capital increase.

Consolidated Financial Performance​

The audited consolidated financial results provide a detailed look at the group's financial movements. The total income for the year ended March 31, 2026, was ₹7,998.72 lakhs, marking a substantial increase compared to the corresponding year in 2025.

The audited consolidated financial statements for the year ended March 31, 2026, compared to the year ended March 31, 2025, are detailed below:


The company's Total Assets stood at 11,386.21 lakhs on March 31, 2026, compared to 11,123.71 lakhs on March 31, 2025.

Audit Qualifications Highlighted​

The independent audit reports raised several qualifications concerning the standalone and consolidated financial results for the year ended March 31, 2026, impacting the overall stated profits.

The key audit findings include:

• Inventory Management: Both the standalone and consolidated reports noted significant deficiencies in inventory management. The inventory was reported as overstated, affecting the profit for the period.
• Loan Agreements: Audit highlighted that loan agreements for Short Term Loans and Advances given to various parties, totaling ₹1,071.88 lakhs, were not provided. Furthermore, certain loans and advances amounting to ₹427.59 lakhs were noted as potentially unrecoverable due to no receipts from the concerned parties in the last two financial years.
• Gratuity Liability: A crucial qualification noted the lack of provision or estimation for gratuity liability. As per the Payment of Gratuity Act, 1972, this statutory obligation remains unrecognized.

The company’s management acknowledged these points, noting that remedial measures are being undertaken, such as improving inventory management and preparing for an actuarial valuation of the gratuity liability.

LIBAS Stock Price Movement​

On Tuesday, Libas Consumer Products Limited shares edged higher, settling at ₹12.83 and gaining 0.08% for the session. The stock saw healthy investor activity, which was supported by a total volume of 25,608 shares traded.