Eureka Industries FY26 profit plunges 91% amid PPIRP

Key developments at a glance

Eureka Industries Ltd has moved to initiate a Pre-Packaged Insolvency Resolution Process (PPIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). Alongside the insolvency process, the company has proposed an amalgamation of Onix Renewable Limited into Eureka Industries. The company’s audited financial results for the year ended March 31, 2026 show a steep fall in profitability even as revenue increased. Shareholders approved the PPIRP and the base resolution plan at an Extraordinary General Meeting (EGM) held on May 18, 2026. The proposals remain subject to admission and approvals from the National Company Law Tribunal (NCLT), Ahmedabad Bench, and other required regulatory clearances.

FY26 results: revenue rose, profit fell sharply

For FY26, Eureka Industries reported net profit after tax of ₹0.1953 crore, a 91% year-on-year decline from ₹2.1427 crore in the previous year. Despite the sharp profit fall, total revenue increased 48% year-on-year to ₹126.5754 crore. For the quarter ended March 31, 2026, the company reported a loss after tax of ₹0.492 crore. The company’s board approved the audited results and also disclosed significant write-offs that were part of efforts to streamline operations. These disclosures frame the company’s decision to pursue a structured restructuring route under the PPIRP framework.

What the company wrote off

Eureka Industries disclosed write-offs across inventory, liabilities, and assets. The company wrote off inventory of ₹1.89 crore, long-term liabilities of ₹2.88 crore, and assets of ₹1.53 crore. The write-offs were described as steps to streamline operations. While the company did not quantify how each item affected quarterly profitability in the provided information, the scale of adjustments is notable in the context of the company’s reported stress and liquidity constraints. These actions were disclosed along with the audited results and restructuring proposal.

Board actions: PPIRP approval and resolution professional

The board, at a meeting held on April 13, 2026, approved the proposal to initiate the PPIRP under Chapter III-A of the IBC, 2016. The company cited financial stress and liquidity constraints as the reason for opting for the pre-pack route. Mr. Bimal Ashok Desai was appointed as the Resolution Professional for the PPIRP, as per the board’s approval and subsequent shareholder decision. The PPIRP is designed for eligible companies to pursue a resolution plan with creditor involvement, while keeping business continuity in focus. However, the process remains contingent on admission by the NCLT, Ahmedabad Bench.

EGM voting: shareholders cleared four resolutions

Eureka Industries disclosed voting results for its EGM held on May 18, 2026, confirming that all four resolutions were passed. Shareholders sanctioned the initiation of the PPIRP under Section 54A of the IBC, 2016. They also approved the base resolution plan, which includes the proposed amalgamation of Onix Renewable Limited with Eureka Industries. The EGM approvals also covered the appointment of the Resolution Professional. In addition, the company disclosed leadership-related resolutions, including the regularisation of Mr. Chaitanya Jayantilal Pandya as Executive Director and appointment as Managing Director, and regularisation of Ms. Avani Ashwinkumar Shah as a Non-Executive Independent Director.

Base Resolution Plan: Onix Renewable amalgamation and name change

A central element of the PPIRP is the base resolution plan that proposes the amalgamation of Onix Renewable Limited into Eureka Industries. As part of the restructuring package, the company also proposed a name change to “ONIX RENEWABLE LIMITED.” These steps are subject to approvals by the NCLT, Ahmedabad Bench, and other regulatory bodies. The company has framed this as a strategic restructuring move alongside the insolvency resolution process. The disclosures indicate that the plan is intended to address financial stress through a structured process, rather than an informal settlement.

Eligibility and process: Eureka’s MSME status

Eureka Industries stated that it qualifies as a Micro, Small and Medium Enterprise (MSME) and is eligible for the PPIRP framework under the IBC. The company also disclosed that the base resolution plan covers liability restructuring and settlement of claims of unsecured financial creditors, operational creditors, employees, and statutory dues. It also includes reorganisation of share capital. The EGM for these matters was scheduled at 12:30 PM IST via video conferencing, with e-voting available from May 15 to May 17, 2026, and during the meeting for eligible shareholders. The structure signals a formal, process-led approach to resolving dues and reorganising the business.

Timeline of reported events

The sequence of disclosures shows a rapid progression from board approval to shareholder consent. The board approved the PPIRP proposal on April 13, 2026. The shareholders then approved the PPIRP and the base resolution plan at the EGM held on May 18, 2026. The next decisive step is NCLT admission and approval of the PPIRP and related scheme of arrangement.

Market impact: what changes for shareholders and stakeholders

The company has formally tied its restructuring to statutory approvals, which means the outcome depends on NCLT and other regulatory decisions. For shareholders, the immediate change is the approval of a PPIRP pathway and an amalgamation proposal that could result in a corporate name change to “ONIX RENEWABLE LIMITED.” For creditors and other claimants, the company has indicated that the base resolution plan is designed to restructure liabilities and settle various claims, including statutory dues. Operationally, the company has already flagged sizeable write-offs, suggesting an effort to present revised financial positions as part of the restructuring context. The company has not disclosed final implementation timelines in the provided information beyond the approvals and conditions.

Company details disclosed

Eureka Industries’ disclosed contact address is A-505, Titanium City Centre, Near Sachin Tower, 100 Feet Ring Road, Anandnagar, Ahmedabad, Gujarat 380015. The company’s telephone number is 079-48918799, and the email contact provided is eurekaindltd@gmail.com. These details were included in the company’s information shared alongside the developments.

Conclusion

Eureka Industries’ FY26 numbers show a steep fall in profitability despite higher revenue, and the company has moved toward a PPIRP-led restructuring. Shareholder approvals for the PPIRP, the base resolution plan, and the Onix Renewable amalgamation mark a key milestone, but the process is conditional on NCLT admission and regulatory clearances. The next confirmed step is the NCLT, Ahmedabad Bench consideration of the PPIRP, base resolution plan, and the scheme of arrangement, which will determine whether the restructuring proceeds as proposed.