Arex Industries Ltd

Arex Industries Ltd trading window closed from 1 October 2026 until the expiry of 48 hours after the declaration of the financial results for the quarter ended 30 September 2026; window to reopen thereafter

AGM Details

• Date and time: 23 September 2026 at 12:30 p.m.
• Mode: VC/OAVM; meeting held remotely.

Key Resolutions

• Item 1 (Ordinary): Adoption of audited financial statements for year ended March 2026.
• Item 2 (Ordinary): Approval of final equity share for FY ended March 2026.
• Item 3 (Ordinary): Re-appointment of Pragnesh Kantilal Shah (Director, retiring by rotation).
• Item 4 (Special): Re-appointment of Laxman Chetandas Tilani as Director (rotation; Reg 17(1A)).
• Item 5 (Special): Re-appointment of Aviv Joseph Divekar as Independent Director for 2026–2031.

Voting Results

• Item 1: Passed; 1,811,198 in favor, 128 against (99.99%/0.01%).
• Item 2: Passed; 1,811,198 in favor, 128 against (99.99%/0.01%).
• Item 3: Passed; 1,811,198 in favor, 128 against (99.99%/0.01%).
• Item 4: Passed; 1,811,198 in favor, 128 against (99.99%/0.01%).
• Item 5: Passed; 1,811,198 in favor, 128 against (99.99%/0.01%).

Director Changes

• Re-appointment of Pragnesh Kantilal Shah as Director (rotating).
• Re-appointment of Laxman Chetandas Tilani as Director (rotating; Reg 17(1A)).
• Independent Director Aviv Joseph Divekar re-appointed for second term (2026–2031).

AGM Details

• Date, time, mode: 23 September 2026; 12:30–12:46 PM; VC/OAVM.
• Remote e-voting from 20 Sep 2026 9:00 AM to 22 Sep 2026 5:00 PM; attendees voted.

Resolutions

• Ordinary: Adoption of Audited Financial Statements and Reports for FY2026; outcome not disclosed.
• Ordinary: Final dividend of Rs 2.50 per equity share for FY2026; outcome not disclosed.
• Ordinary: Re-appointment of Shri Pragnesh Shah, retiring by rotation; outcome not disclosed.
• Special: Re-appointment of Shri Laxman Tilani, retiring by rotation; seek consent under Reg 17(1A).
• Special: Re-appointment of Aviv Divekar as Independent Director for Sep 2026–Aug 2031; outcome not disclosed.

Financial performance

• Revenue from operations stood at Rs 4,963.74 lakhs, down 2.94% YoY.
• Profit before tax Rs 191.88 lakhs.
• Current tax Rs 94.08 lakhs; Deferred tax credit Rs 50.35 lakhs.
• Profit after tax Rs 148.15 lakhs.
• Total comprehensive income Rs 137.27 lakhs.

Operations & exports

• Exports amounted to Rs 296.71 lakhs, up 311% YoY.
• Company operates from two units: Chhatral and Anjar, single garment-labels segment.
• Forex gain of Rs 4.71 lakhs; raw material and overheads increased.

Dividend & capital allocation

• Dividend per equity share Rs 2.50; aggregate Rs 89.97 lakhs.
• Annual general meeting date: 23 September 2026; AGM held via VC/OAVM.
• Final dividend, if declared, payable by 22 October 2026.

Capital structure & liquidity

• Current borrowings Rs 1,060.02 lakhs; long-term borrowings nil.
• Cash and cash equivalents Rs 1,058 lakhs; unclaimed dividend Rs 617 lakhs.
• Debt-to-equity ratio 0.38 as at 31 March 2026.

Governance & board

• Board consists of nine directors; three independent including one woman.
• Aviv Joseph Divekar reappointed as Independent for 2026-2031.
• Laxman C. Tilani reappointed as Non-Executive Director; subject to special resolution.
• Pragnesh Kantilal Shah reappointed; board notes on rotation.

Audit & compliance

• Statutory auditors: Sweta Patel & Associates; reappointed for five years.
• Secretarial auditors: Preyansh Shah & Associates; Tilani declaration pending noted.
• GST demand raised; company filed appeals.

Related party transactions

• RPTs with ANC Systems LLP, ACN Systems LLP, Latha Services LLP, Uttra Polydye Pvt Ltd at arms-length.
• Total dye yarn purchases from related parties: Rs 666.48 lakhs.

ESG & energy efficiency

• Energy: wind turbine 1.6 MW and solar 130 kW; DG sets 400 kVA.
• Electricity purchased: 4,188,645 units; Rs 33.60 crore; rate Rs 8.02 per unit.
• Wind/solar generation: 2,216,276 kWh; wheeling: 2,002,703 kWh.

Risks & outlook

• Industry faces price competition, raw material costs, and FX volatility.
• GST developments and regulatory shifts pose potential risk; ongoing monitoring.

Meeting Details

• Board meeting on 29 July 2026 to consider unaudited results for quarter ended 30 June 2026.

Key Agenda Items

• To consider, approve and take on record unaudited financial results for quarter ended 30 June 2026.
• To consider other items with permission of the Chair.

Dematerialisation status

• Securities for dematerialisation were confirmed to the depositories by MUFG Intime India.
• Securities dematerialised have been listed on the stock exchanges where earlier issued.
• Physical certificates received for dematerialisation were mutilated and cancelled after due verification.
• Depository's name has been substituted as registered owner in the records within prescribed timelines.

Financial Performance 📊

• Q3 FY26 revenue from operations was Rs 1,298.65 lakh, flat QoQ and down 1.6% YoY.
• Total expenses for Q3 FY26 were Rs 1,279.05 lakh, up 9% QoQ and 7% YoY.
• Employee benefits expense rose 42% QoQ and YoY to Rs 612.05 lakh.
• Cost of materials consumed increased 7.5% YoY to Rs 332.49 lakh.
• Profit before tax dropped 84.6% QoQ to Rs 19.60 lakh, up 6.5% YoY.
• Profit after tax was Rs 25.98 lakh, down 74% QoQ but up 6% YoY; EPS was Rs 0.72, down from Rs 2.78 QoQ.

Other Expenses & Costs

• Finance costs declined 25% YoY to Rs 26.35 lakh.
• Depreciation expense was Rs 106.45 lakh, up 6.5% YoY.
• Other expenses increased QoQ to Rs 301.44 lakh, down 1% YoY.

Audit & Reporting

• No exceptional or extraordinary items reported in the quarter or nine months.
• Limited review by auditors issued with no material misstatements noted.

Corporate Actions & Notes

• Board approved results on January 27, 2026.
• Company has a single reportable segment; no segmental data provided.
• Assets under capital work in progress are not depreciated until year-end transfer.