Ambika Cotton Mills Ltd

AGM outcomes and governance approvals

• Final dividend of Rs 37 per share for FY 2025-26 approved.
• P. V. Chandran appointed Managing Director for five years (Apr 1, 2027–Mar 31, 2032).
• Dr. K. Venkatachalam to continue as Non-Executive Director beyond age 75.
• Vijayalakshmi Narendra appointed Independent Women Director for 12 Aug 2026 to 11 Aug 2031.
• K. Murali Mohan appointed Independent Director for five years from the 38th AGM.

AGM Details

• AGM held 29 Sep 2026 at 12:00 Noon via VC/OAVM.
• Meeting commenced with quorum; e-voting conducted 26-28 Sep 2026.

Resolutions

• Ordinary: Adopt audited financial statements for year ended 31 March 2026.
• Ordinary: Declare final dividend for FY 2025-26.
• Ordinary: Re-appointment of Dr. K. Venkatachalam who retires by rotation.
• Special: Re-appointment of Sri P.V. Chandran as Managing Director.
• Special: Continue Dr. K. Venkatachalam as Non-Executive Director after age 75.
• Special: Re-appointment of Mrs. Vijayalakshmi Narendra as Independent Women Director.
• Special: Appointment of Sri K. Murali Mohan as Independent Director.
• Ordinary: Ratify remuneration of Cost Auditors for FY 2026-27.

Voting Status

• Voting results to be disseminated to exchanges and company website; detailed outcomes not in filing.

Machinery commissioning

• Imported plant and machinery for 6,480 spindles arrived on 22 September 2026 and has been commissioned.

Ambika Cotton Mills Limited trading window closure from 01.10.2026 till 48 hours after declaration of unaudited financial results for the Quarter/Six months ended 30.09.2026

Shipment delay update

• Delay in 6480-spindle machinery arrival; ETA moved to 13 Sep 2026 due to feeder vessel space constraints.
• Project completed except installation/commissioning; commissioning to be intimated to exchanges on arrival.

Financials

• Revenue from operations and other income: 79,619.13 Lakhs, up 9.28%.
• Gross profit: 11,675.49 Lakhs; growth 2.75%.
• Profit before tax: 9,619.30 Lakhs; tax 2,462.81; PAT 7,156.49 Lakhs.
• Total comprehensive income: 7,144.09 Lakhs; EPS: 125.00 Rs.
• Dividend per equity share: 37 Rs; payout 2,118.25 Lakhs; payout ratio 29.60%.
• Exports contributed 72.90% of turnover; export turnover 54,549.93 Lakhs.

Exports & geography

• Export turnover stood at 54,549.93 Lakhs, up 10.10%.
• Exports accounted for 72.90% of total turnover.
• Geography: Asia 50,085.36; India 21,147.10; Europe 139.56; North America 23.99; Africa 3,430.36 Lakhs.
• Major customers contributing >10%: Rs 30,629.80 Lakhs.

Energy & sustainability

• Wind: 27.4 MW; Rooftop solar: 8.33 MW; 82-84% energy from renewables.
• Rooftop solar energy: 11,474,400 kWh; Wind energy to grid: 51,555,663 kWh.
• CO2 emissions reduced by 44,751.35 tonnes; sustainable energy mix.
• Total energy consumption: 258,640,750,100 kJ; energy intensity 34.57 kJ per rupee.

Capex & expansion

• Capex in FY2025-26: Rs 6,995.82 Lakhs; Plant 4,455.98; Factory Building 2,060.17; WIP 479.67.
• Plan to modernize plant at Rs 130 Crores; funded from internal accruals; operational by Mar 2027.
• Orders placed; LC opened for import of Plant and Machinery.

Debt, liquidity & capital

• Debt-free with no long-term liabilities; robust liquidity and strong cash position.
• Cash and cash equivalents: Rs 8,718.75 Lakhs; deposits: Rs 0.00.
• Bank borrowings are working capital facilities; no long-term debt.

Governance

• MD P.V. Chandran reappointed for five years from 1-Apr-2027; shareholder approval required.
• Independent Women Directors: Vijayalakshmi Narendra to second term; K Murali Mohan appointed.
• Dr. K. Venkatachalam; Dr. T. Bina; N. Subramaniam changes noted; four Board meetings in FY.
• Auditors: S. Krishnamoorthy & Co; Secretarial Auditor: Sundararajan Baalaji.

CSR & ESG

• CSR expenditure: Rs 226.65 Lakhs; required 219.27; excess 7.38.
• CSR programs include Police Public Park, medical support, rural works, education, and relief to poor.
• CSR policy disclosed; assets created: Police Park and public waiting lounges.

Dividend record date

• Equity shares of Ambika Cotton Mills Ltd are affected.
• Record date is Tuesday, 22 September 2026.
• Dividend is Rs 37 per equity share (final for FY2025-26).
• Subject to shareholders' approval at the 38th AGM.
• Payment date is not specified.

Financial highlights

• Revenue from operations and other income: Rs 79,619.13 Lakhs.
• Profit after tax: Rs 7,156.49 Lakhs.
• EPS: Rs 125.00 per share.
• Export turnover: Rs 54,549.93 Lakhs; exports 72.90% of turnover.
• Revenue growth: 9.28% YoY.
• Dividend: Rs 37 per share; Rs 2,118.25 Lakhs.
• Dividend payout ratio: 29.60%.
• Debt-free; no long-term liabilities.
• Cash and cash equivalents: Rs 8,718.75 Lakhs.

Operations & sustainability

• Renewable energy share: 82-84% of total energy.
• Wind capacity 27.4 MW; rooftop solar 8.33 MW; captive use.
• Rooftop solar: 8,673,734 kWh; wind exports: 41,010,872 kWh.
• CO2 emissions reduced: 35,723.23 tonnes.
• Capex in FY25-26: Rs 6,995.82 Lakhs for capacity/infra.
• Rs 130 Crore modernization plan; internal funding; target Mar 2027.
• Exports constitute 72.90% of turnover; focus on exports.
• Raw cotton sourcing: domestic and imported, sustainable.
• Certifications: GOTS, USCTP, BCP, OEKO-TEX, FSC, GRS, CMIA, OCS.

Governance & compliance

• Board of nine directors; four independent.
• FY2025-26 board meetings: 27 May, 8 Aug, 8 Nov, 10 Feb.
• Secretarial audit by Sundararajan Baalaji; five-year engagement.
• Statutory auditors: S. Krishnamoorthy & Co; unmodified report.
• Vigil mechanism/Whistle blower policy on company website.
• Penalties: Rs 2,343,480 fine by BSE/NSE; case in SAT pending.
• Related party transactions disclosed; promoter-family relationships disclosed.
• Independent directors familiarization program; link on website.

Dividend & capital structure

• Final dividend proposed: Rs 37 per share; Rs 2,118.25 Lakhs.
• Promoters hold 50.35% as of 31-03-2026.
• Dematerialization: 99.56% of shares; trading in demat form.
• Listed on BSE and NSE; annual listing fees paid.
• Paid-up capital: Rs 5.725 Crore.

CSR & ESG

• CSR expenditure: Rs 226.65 Lakhs; required Rs 219.27.
• CSR committee: 2 meetings in FY25-26.
• Projects: Police Park, hospital support, water, education, and welfare.
• Excess CSR spend carried forward: Rs 23.97 Lakhs.
• CSR policy accessible on company website.

Outlook & risks

• Outlook: strong demand; modernization and capacity expansion planned.
• Risks: geopolitical disruptions; raw cotton price fluctuations; logistics.
• Currency exposure mitigated via forward contracts and natural hedges from exports/ imports.
• Continued focus on quality, timely delivery, and new markets.

Notes on financial reporting

• Auditors’ report confirms true and fair view; no material reservations.
• Ind AS-based financials approved 26 May 2026.
• CSR reports and BRR disclosures available on company site.

Rating action

• Short-term facilities upgraded to A1+; long-term rating reaffirmed at A+/Stable.

Instruments & ratings

• Total bank loan facilities rated Rs 455.55 crore; long-term A+/Stable; short-term A1+.

Strengths & weaknesses

• Strength: Comfortable financial risk profile; established market position.
• Weakness: Susceptibility to volatility in raw materials and forex rates.

Outlook

• Outlook: Stable.

Key financials

• Revenue ~ Rs 780 crore in 2026; OPBDIT margin 14-15%.
• Net cash ~ Rs 198 crore as of March 2026.
• Debt-free balance sheet as of 31 Mar 2026; gearing below 1x.

Liquidity & capital structure

• Minimum free liquidity buffer of ~Rs 150 crore expected over the medium term.
• Current ratio 6.43x as of 31 Mar 2026.

Rating history

• 28-Jul-2026: Long-term A+/Stable; Short-term A1+; Outlook Stable.