Ambika Cotton Mills Ltd

Independent Director Re-appointment

• Re-appointment of Vijayalakshmi Narendra as Independent Director from 12 Aug 2026 to 11 Aug 2031.
• Subject to approval of shareholders by Special Resolution at the forthcoming AGM.
• She is not related to any Directors and does not hold shares in the company.
• Previously completed two terms as Independent Director at Super Sales India Ltd.
• Directorships include Magna Electro Castings Limited; Lakshmi Life Sciences Pvt Ltd; Chakradhara Aerospace And Cargo Pvt Ltd.
• Member of Audit, Nomination & Remuneration, and Stakeholders Relationship Committees at Magna Electro Castings.
• Not debarred by SEBI or other authority.

Independent Director recommendation

• Board recommends Sri K. Murali Mohan as Independent Director at AGM via Special Resolution.
• Candidate is Electrical Engineer and Chartered Accountant with over 50 years' experience.
• DOB 12.03.1948; not related to any Ambika Cotton Mills directors.
• Has directorships in Lakshmi Mills, Bhavani Tea, Be Be Rubber Estates, and Veejay Terry.
• Currently Audit Committee member at Lakshmi Mills Company Ltd.
• Not holding shares in Ambika Cotton Mills; not debarred by SEBI.
• Board meeting date for recommendation: 08 August 2026.
• Appointment subject to shareholder approval by Special Resolution at ensuing AGM.

MD re-appointment

• Reappointed P V Chandran as MD for 5 years, Apr 2027–Mar 2032, subject to Special Resolution at AGM.
• Profile: current MD with extensive yarn mill experience.

Financials

• Total income ₹261.24 crore; revenue from operations ₹257.92 crore; other income ₹3.32 crore.
• Cost of materials consumed ₹102.34 crore.
• Changes in inventories of finished goods ₹57.38 crore.
• Employee benefits ₹13.51 crore.
• Finance costs ₹2.95 crore.
• Depreciation and amortisation ₹5.24 crore.
• Other expenses ₹32.96 crore.
• Profit before tax ₹34.54 crore.
• Current tax ₹8.27 crore.
• Deferred tax ₹0.57 crore.
• Profit after tax ₹25.70 crore.
• EPS ₹4.49.
• Board approved results on 08 Aug 2026; limited review by statutory auditors.
• Company operates in a single segment: Textiles.

Capex & operations

• Rs 135 crore capex to modernize Unit IV, funded from internal accruals.
• Unit IV capacity to rise to 45,000 spindles from 43,000.
• 6480 spindles to be operational in September 2026 after shipments.
• Shipment delay due to West Asia crisis; arrival first week of September 2026.
• Foreign currency fluctuation loss ₹41.09 lakh included in Other Expenditure.
• No subsidiary/associate/joint venture.

Auditor & approvals

• Unaudited results reviewed by Audit Committee; Board approved on 08 Aug 2026.
• Results subject to limited review by statutory auditors.

Rating Action

• Short-term rating upgraded to Crisil A1+; long-term rating reaffirmed Crisil A+/Stable.
• Outlook: Stable.

Instruments/Facilities Rated

• Total bank loan facilities rated: Rs 455.55 crore.
• Long-term rating: Crisil A+/Stable (Reaffirmed).
• Short-term rating: Crisil A1+ (Upgraded from A1).
• Regulator: RBI.

Rationale Highlights

• Liquidity improved; net cash around Rs 198 crore as of March 2026.
• Minimum free liquidity buffer of Rs 150 crore targeted.
• Debt-free as on March 31, 2026; capex funded internally.
• Strengths: promoter experience and premium yarn market position.
• Weakness: cotton price and forex volatility.

Financial Metrics

• FY2026 revenue Rs 780.95 crore; FY2025 Rs 721.00 crore.
• PAT Rs 71.56 crore; PAT margin 9.16%.
• Interest coverage around 9.0x; TOLTNW 0.16x.
• Adjusted debt/adjusted net worth 0.00x.

Material Changes Since Last Rating

• Short-term upgrade; long-term reaffirmation; outlook remains Stable.

Meeting Details

• Board meeting on 8 August 2026 to consider unaudited quarterly results for quarter ended 30 June 2026.

Key Agenda Items

• Consider and take on record unaudited financial results for the quarter ended 30 June 2026.

Other Notes

• No other material governance or financial actions disclosed.

Dematerialisation status

• Dematerialisation during the quarter ended 30 June 2026 confirmed to depositories; dematerialised securities listed on exchanges.
• Physical certificates for dematerialisation were mutilated and cancelled; depository named as registered owner within 15 days.

Meeting Details

• Board meeting on Tuesday, 26 May 2026.

Key Agenda Items

• Consider and take on record audited financial results for year ended 31 March 2026.
• Consider and declare final dividend for FY 2025-26.

Other Notes

• No additional material investor information disclosed in this notice.