Arex Industries Ltd

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.

Financial Performance 📊

• Q3 FY26 revenue from operations was Rs 1,298.65 lakh, flat QoQ and down 1.6% YoY.
• Total expenses rose 8.9% QoQ to Rs 1,279.05 lakh, up 6.8% YoY.
• Profit before tax declined 84.6% QoQ to Rs 19.60 lakh, down 84% YoY.
• Profit after tax dropped 74% QoQ to Rs 25.98 lakh, down 73.4% YoY.
• Basic and diluted EPS was Rs 0.72, down from Rs 2.72 YoY.
• Finance costs decreased 9.5% QoQ to Rs 26.35 lakh, down 25.4% YoY.

Expenses Breakdown

• Cost of materials consumed increased 7.5% QoQ and YoY to Rs 332.49 lakh.
• Employee benefits expense rose 49.2% QoQ to Rs 612.05 lakh, up 42% YoY.
• Depreciation expense steady QoQ at Rs 106.45 lakh, up 6.5% YoY.
• Other expenses increased 9.8% QoQ to Rs 301.44 lakh, down 0.5% YoY.

Corporate & Audit

• No exceptional or extraordinary items reported in Q3 FY26.
• Limited review by auditors issued with no material misstatements noted.
• Board approved Q3 FY26 results on January 27, 2026.

Financial Performance 📊

• Board approved standalone unaudited financial results for Q3 and nine months ended December 31, 2025.
• Total income: Rs. 1,298.65 lakhs (Q3); Rs. 3,726.47 lakhs (nine months).
• Profit before tax: Rs. 19.60 lakhs (Q3); Rs. 181.02 lakhs (nine months).
• Profit after tax: Rs. 25.98 lakhs (Q3); Rs. 150.71 lakhs (nine months).
• Basic and diluted EPS for nine months ended December 31, 2025: Rs. 4.19 per share.

Audit and Compliance ⚠️

• Statutory auditors issued limited review report with no material misstatements.
• Company capitalizes assets under "Capital Work in Progress"; depreciation excluded from current figures.

🗓️ Meeting Details

• Board meeting scheduled for January 27, 2026.

📊 Financial Performance

• Approval of unaudited financial results for quarter and nine months ended December 31, 2025.