🔍

Shanthala FMCG Products Limited (SHANTHALA)

📊 NSE: SHANTHALA 🏢 Trading & Distributors 📢 Latest filing: 13 Oct 2026 📝 Analysis written: 14 Dec 2025

Latest quarterly results (H1 FY26)

In its latest reported quarter, H1 FY26, Shanthala FMCG's revenue was ₹26.9 Cr (+4.2% year on year, +0.2% on the previous half-year), and net profit ₹0.8 Cr (+83.3% year on year); the operating margin was 1.7%.

H1 FY26 (₹ Cr)	Value	YoY vs H1 FY25	vs prev. half
Revenue	₹26.9	+4.2%	+0.2%
Operating profit	₹0.5	—	+42.4%
Net profit	₹0.8	+83.3%	+40.0%
EPS (₹)	1.15	+82.5%	+40.2%
Operating margin	1.7%	—	—

Full quarterly financials → Results calendar →

SHANTHALA delivery percentage

NSE end-of-day data for Fri, 16 Oct 2026

On Fri, 16 Oct 2026, 90.0% of the SHANTHALA shares traded on NSE were taken to delivery, against the stock's own 20-session average of 89.51%. That is close to its usual level. Turnover was only ₹2 lakh, so a handful of trades can move this figure.

90.0%Delivery, 16 Oct

89.51%Own 20-session average

1.8×Volume vs its average

₹12.20NSE close · -7.92%

Delivery in the last 5 sessions: 100.0% · 100.0% · 100.0% · 100.0% · 90.0%

Delivery across the market →

A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed

📢 Recent Corporate Announcements

Shanthala FMCG Submits Q2 FY27 Dematerialization Compliance Certificate

🟡 NEUTRAL ⭐ 1/10

ROUTINE 📅 13 Oct 2026, 04:48 PM

Shanthala FMCG Products Limited has submitted its compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. Issued by its Registrar and Transfer Agent (RTA), Bigshare Services Pvt. Ltd., the certificate confirms that securities received for dematerialization were processed, mutilated, and cancelled within the prescribed 15-day period. This is an entirely routine regulatory disclosure confirming depository participant compliance. It has no impact on the company's financial results or ongoing business operations.

Disclosure submitted under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018
Covers the quarterly compliance period ended September 30, 2026
Confirmed by Registrar and Transfer Agent Bigshare Services Pvt. Ltd. via letter dated October 9, 2026
Confirms dematerialized securities certificates were cancelled within 15 days of receipt

💡 This is a routine administrative filing requiring no action; investors should monitor upcoming Q2 FY27 earnings for financial performance updates.

Shanthala FMCG Board Takes Final Forensic Audit Report on Record

🔵 WATCH ⭐ 9/10

REGULATORY 📅 12 Oct 2026, 06:49 PM

Shanthala FMCG Products Limited informed the exchange that its Board of Directors met on October 12, 2026, to take on record the final forensic audit report. The report was issued by forensic auditor M/s. GuruJana Consulting LLP, Chartered Accountants. The company did not disclose the findings, scope, or financial implications of the audit report in the filing. Given the company's micro-cap size of Rs 9 Cr and TTM revenue of Rs 102 Cr, any forensic findings could carry significant corporate governance implications.

Board meeting held on October 12, 2026, from 03:30 PM to 04:05 PM (IST)
Final forensic audit report issued by M/s. GuruJana Consulting LLP (LLPIN: ACP-9378) taken on record
Findings and quantifiable impacts of the forensic audit were not disclosed in the filing
Company market capitalization stands at Rs 9 Cr against TTM revenue of Rs 102 Cr

💡 Track subsequent disclosures for the specific findings or executive summary of the forensic audit report, along with any regulatory commentary or management actions.

Shanthala FMCG Receives 1-Month ROC Extension to Hold FY26 Annual General Meeting

🟡 NEUTRAL ⭐ 3/10

REGULATORY 📅 22 Sep 2026, 04:05 PM

Shanthala FMCG Products Limited has received approval from the Registrar of Companies (ROC), Karnataka, for an extension of time to conduct its Annual General Meeting (AGM) for the financial year ended March 31, 2026. The ROC has granted an extension period of one month. This allows the micro-cap FMCG trading firm (market cap of Rs 11 Cr) additional time beyond the standard September 30 statutory deadline to finalize and present its annual accounts to shareholders.

ROC Karnataka granted an extension of 1 month to hold the AGM
Extension applies to the Annual General Meeting for the Financial Year ended March 31, 2026
Approval announced to the exchange on September 22, 2026

💡 Watch for the subsequent intimation specifying the revised date, venue, and notice for the FY26 AGM, as well as the release of the complete Annual Report.

Shanthala FMCG Seeks 3-Month Extension for FY26 AGM Due to Ongoing Forensic Audit

🔴 NEGATIVE ⭐ 9/10

REGULATORY 📅 10 Sep 2026, 03:45 PM

Shanthala FMCG Products Limited has applied to the Registrar of Companies (ROC) seeking a three-month extension of time to hold its Annual General Meeting (AGM) for the financial year ended March 31, 2026. The delay is attributed to an ongoing forensic audit of the company's books of accounts, which prevents the finalization of FY26 financial statements until the audit report is received. The decision was approved by the Board via a circular resolution passed on September 08, 2026. This adds uncertainty to the micro-cap trading firm, which has a market cap of approximately Rs 11 Cr.

Applied for a 3-month extension to hold the AGM for the FY ended March 31, 2026
Delay caused by an ongoing forensic audit of the company's books of accounts
Financial statements for FY26 pending finalization until forensic audit report is received
Board approval secured via circular resolution dated September 08, 2026

💡 Track the findings of the pending forensic audit report and look for the ROC's approval or rejection of the AGM extension request.

₹2.65 Lakh Fine and Forensic Audit: Shanthala FMCG Delays FY26 Results Over Accounting Gaps

🔴 NEGATIVE ⭐ 9/10

REGULATORY 📅 07 Aug 2026, 07:41 PM

Shanthala FMCG Products Limited has failed to submit its audited financial results for the year ended March 31, 2026, leading to an NSE fine of ₹2,65,500 as of July 16, 2026. The delay is due to 'material gaps and inconsistencies' identified by statutory auditors, which prompted the Board to appoint a Forensic Auditor. The company faces severe regulatory consequences, including the potential freezing of promoter holdings (61.91% stake) and a shift to the 'Z' category (Trade-for-Trade) if compliance is not met. The Board has resolved to pay the penalties and will seek a waiver only after the results are filed.

NSE imposed a fine of ₹2,65,500 inclusive of GST for non-submission of FY26 results as of July 16, 2026.
Daily penalty of ₹5,000 continues to accrue for every day of non-compliance beyond the notice period.
Statutory auditors identified material gaps and discrepancies in the books of accounts for FY ended March 31, 2026.
A Forensic Auditor was appointed, and preliminary findings were presented to the Board on August 06, 2026.
NSE has issued a final reminder warning of freezing promoter holdings if compliance and fine payments are not completed.

💡 Investors should closely monitor the release of the final Forensic Audit report and the subsequent audited financial results to assess the severity of the accounting discrepancies. Watch for any NSE notification regarding the freezing of promoter shares or the shifting of the stock to the 'Z' category, which would severely impact liquidity.

Shanthala FMCG: Forensic Audit, NSE Non-Compliance, and HUL Contract Termination

🔴 NEGATIVE ⭐ 10/10

REGULATORY 📅 06 Aug 2026, 01:57 PM

Shanthala FMCG (Market Cap: ₹12 Cr) has disclosed three critical negative developments following its August 6, 2026 board meeting. The company is currently undergoing a forensic audit by GuruJana Consulting LLP and has received non-compliance notices from the NSE regarding financial result filings (Regulation 33). Additionally, the company announced the termination of its distributorship arrangement with Hindustan Unilever Limited (HUL), which is a significant blow to its trading-based business model that generated ₹102 Cr in TTM revenue.

Ongoing forensic audit being conducted by M/s. GuruJana Consulting LLP reviewed by the Board
Receipt of formal notices from NSE for non-compliance with SEBI Regulation 33 (Financial Results)
Termination of the distributorship arrangement with Hindustan Unilever Limited (HUL)
Company market capitalization is extremely low at ₹12 Cr relative to ₹102 Cr TTM revenue
Share price has already declined by 50.7% over the last 12 months

💡 Investors should closely monitor the findings of the forensic audit and the company's ability to file its pending financial results to avoid potential trading suspension. The loss of the HUL contract requires urgent clarity on how the company will replace this revenue stream.

Shanthala FMCG Appoints New Forensic Auditor Following Resignation of Previous Firm

🔵 WATCH ⭐ 9/10

REGULATORY 📅 27 Jul 2026, 06:40 PM

Shanthala FMCG Products Limited has replaced its forensic auditor, M/s. Chaudhary Chaudhary & Co, with M/s. GuruJana Consulting LLP. The outgoing auditor resigned citing an inability to dedicate the required time to conclude the audit within the stipulated timeframe. This change occurs approximately seven weeks after the initial audit appointment on June 07, 2026. Given the company's small market capitalization of Rs 12 Cr and a 47.5% stock price decline over the last six months, the forensic audit outcome is a critical governance event.

Forensic audit originally initiated/disclosed on June 07, 2026
Outgoing auditor M/s. Chaudhary Chaudhary & Co resigned citing professional commitments
New auditor M/s. GuruJana Consulting LLP appointed on July 27, 2026, to ensure 'expeditious' completion
Company market capitalization stands at a micro-cap level of Rs 12 Cr
Stock price has declined by 47.5% over the preceding six-month period

💡 Investors should closely monitor the company's disclosures for the final forensic audit report and any subsequent regulatory actions or management clarifications regarding the specific scope of the investigation.

View All SHANTHALA Announcements on Live Market Tracking →

💰 Financial Performance

Revenue Growth by Segment

The company reported consolidated revenue from operations of INR 26.94 Cr for the half-year ended September 30, 2025, representing a marginal growth of 0.33% compared to INR 26.85 Cr in the same period of the previous year. Segment-specific revenue splits were not disclosed in the available documents.

Geographic Revenue Split

Not disclosed in available documents, though the company is headquartered and operates out of Virajpet, Kodagu, Karnataka.

Profitability Margins

The consolidated Profit Before Tax (PBT) margin for H1 FY26 stood at 3.68%, based on a PBT of INR 1.01 Cr and total income of INR 27.53 Cr. Standalone PBT for the same period was INR 0.96 Cr.

EBITDA Margin

Operating profit before working capital changes was INR 55.28 Lakhs for H1 FY26, compared to INR 52.69 Lakhs for the year ended March 31, 2025, indicating a significant improvement in core operational profitability on a half-yearly basis.

Capital Expenditure

As of September 30, 2025, the company held Property, Plant and Equipment valued at INR 2.34 Cr. The company is actively scaling operational and production capacities to support growth in FY 2025-26.

Credit Rating & Borrowing

The company significantly reduced its long-term borrowings by 96.7%, from INR 11.37 Lakhs in March 2025 to INR 0.37 Lakhs in September 2025. Short-term borrowings increased to INR 48.49 Lakhs from zero in the previous period. Interest expense for H1 FY26 was INR 3.97 Lakhs.

⚙️ Operational Drivers

Raw Materials

FMCG inventory (finished and semi-finished consumer goods) represents the primary material cost, with inventory valued at INR 1.85 Cr as of September 30, 2025.

Capacity Expansion

The company is focused on scaling operational and production capacities to navigate emerging challenges, though specific MTPA or unit capacity figures were not disclosed.

Raw Material Costs

Inventory levels decreased by 16.7% from INR 2.22 Cr in March 2025 to INR 1.85 Cr in September 2025, reflecting improved inventory management and procurement strategies.

Manufacturing Efficiency

The company is implementing an audit trail (edit log) feature in its accounting software to ensure compliance and operational transparency, as verified by statutory auditors.

Logistics & Distribution

The company is strengthening its execution capabilities and supply chain efficiency to optimize distribution in the dynamic FMCG market.

📈 Strategic Growth

Growth Strategy

Growth will be achieved by scaling operational and production capacities, enhancing supply chain efficiency, and strengthening marketing and execution capabilities. The company is also investing in AI and eco-friendly practices to align with changing consumer demands.

Products & Services

Fast Moving Consumer Goods (FMCG) products, including various consumer staples and household items distributed through its network.

Brand Portfolio

Shanthala

New Products/Services

The company is targeting new opportunities in the dynamic business environment of FY 2025-26, though specific new product names were not disclosed.

Market Expansion

The company is positioning itself to capitalize on India's expanding middle class and accelerating digital adoption, focusing on growth in the FY 2025-26 period.

🌍 External Factors

Industry Trends

The FMCG industry is currently growing, driven by digital adoption and a shift toward eco-friendly practices. The company is positioning itself by investing in AI and sustainable operations to remain competitive.

Competitive Landscape

The FMCG market is described as dynamic, requiring companies to adapt quickly to changing consumer demands and regulatory shifts to maintain market position.

Competitive Moat

The company's moat is derived from its established supply chain efficiency and regional presence in Karnataka. This is sustainable through continued investment in technology and operational scaling.

Macro Economic Sensitivity

The company is sensitive to India's GDP growth, infrastructure investment, and the expansion of the middle class, which drive demand for FMCG products.

Consumer Behavior

There is a notable shift toward digital adoption and a preference for brands that implement eco-friendly practices and AI-driven service enhancements.

⚖️ Regulatory & Governance

Industry Regulations

The company must comply with Rule 3(1) of the Companies (Accounts) Rules, 2014, regarding audit trails in accounting software. As an SME-listed company, it is exempt from certain SEBI Corporate Governance and Related Party Transaction disclosure requirements under Regulation 15.

Environmental Compliance

The company is investing in eco-friendly practices to ensure long-term sustainability and compliance with evolving environmental regulations in the FMCG sector.

Taxation Policy Impact

The company reported a deferred tax liability of INR 0.83 Lakhs as of September 30, 2025.

Legal Contingencies

The company has no pending litigations as of the latest auditor's report dated May 22, 2025.

⚠️ Risk Analysis

Key Uncertainties

Key risks include supply chain complexities and sudden regulatory shifts, which could impact margins by an estimated 5-10% if not managed through AI and efficiency investments.