Aro Granite Industries Ltd

AGM notice and online access

• AGM 38th scheduled for 11 September 2026 at 12:30 IST via VC/OAVM.
• Notice of AGM and Annual Report for FY2025-26 accessible via provided web-links.
• Notice sent to registered email holders; unregistered addresses will receive a web-link.
• Physical folios without PAN/KYC details may receive dividends only electronically.
• KYC update requested with DP/RTA to ensure timely dividend credit.

AGM and governance updates

• 38th AGM of Aro Granite Industries Ltd to be held on 11 September 2026 via VC/OAVM.
• Cut-off date for voting eligibility fixed at 4 September 2026.
• Remote e-voting window is 8 September 2026, 10:00 AM to 10 September 2026, 5:00 PM.
• Sunil Kumar Arora is proposed to be re-appointed as Managing Director for three years from 1 April 2027.
• Sahil Arora is proposed to be re-appointed as Whole-Time Director for three years from 1 November 2026.
• Aggregate related-party borrowings from promoters up to ₹50 crore for FY2026-27 require shareholder approval.
• RPTs will be on arm's length basis and in the ordinary course of business.
• Total proposed RPTs amount to ₹50 crore, about 68% of FY25-26 turnover.

AGM & Book Closure

• Book closure: 5 Sep 2026 to 11 Sep 2026; AGM: 11 Sep 2026.
• AGM to be conducted via VC/OAVM; remote e-voting window 8–10 Sep 2026.

Related Party Transactions

• Aggregate RPT borrowings proposed for 2026-27 up to ₹50 crore.
• RPTs involve promoters/directors Sujata Arora, Sahil Arora, Sunil Kumar Arora; shareholder approval required.

MD Remuneration

• Sunil Kumar Arora MD reappointed for 3 years from 01-Apr-2027; remuneration per Nomination & Remuneration Committee approval.
• Remuneration includes salary and 5% commission; perquisites described and board approval required.

WTD Remuneration

• Sahil Arora WTD reappointed for 3 years from 01-Nov-2026; remuneration per committee approvals.
• Remuneration includes salary and 5% commission; perquisites including housing and travel; board approvals required.

Financial Highlights

• FY2025-26: Net sales ₹85.33 crore; PAT ₹-11.81 crore; operating loss ₹-1.79 crore; PBT ₹-11.62 crore.
• Company cites export headwinds, currency volatility, and input costs as profit drivers.

Financial performance

• FY26 revenue ₹73.52 crore; EBITDA ₹13.32 crore; PAT loss ₹11.92 crore.
• Net loss widened to ₹11.92 crore from ₹6.23 crore in FY25.
• Export revenue about 80% of FY26; domestic 20%.
• EPS basic and diluted: −₹7.79 for FY26.
• Cash flow from operations ₹16.73 crore; year-end cash ₹3.19 crore.
• Liquidity: current ratio 1.47; gearing 88.7%; total borrowings ₹154.29 crore; equity ₹173.94 crore.

Operations & capacity

• Annual production capacity: 1 million sqm; facilities at Hosur and Jaipur.
• FY26 unit sales: Hosur Tiles 48,163 sqm; Slabs 59,014 sqm.
• Jaipur Slabs 34,682 sqm; Hosur Quartz 35,912 sqm.
• Capacity utilisation: Tiles 12.14%; Slabs 10.00%; Jaipur Slabs 23.71%; Quartz 20.55%.
• Jaipur plant expansion and quartz unit at Hosur boosted capacity and mix.
• Stock-and-sell model: 11,000 sqm warehouse enabled faster market response.

Product & strategy developments

• Diversified into engineered quartz to lift margins and revenue potential.
• Jaipur expansion eased raw material constraints and expanded reach.
• Multi-Wire cutting machine installed at Hosur to improve margins.
• Dedicated cut-to-size unit at Hosur with CNC/polishing capabilities.
• Shift to stock-to-sell model with added inventory discipline.
• Global presence: exports to 50+ markets; emphasis on premium surfaces.

Market & risk factors

• US tariff regime created pricing and landed-cost uncertainty.
• Tariff framework struck down in Feb 2026; temporary uniform 10% surcharge enacted briefly.
• Middle East conflict raised resin costs; resin price volatility expected FY27.
• Domestic Bengaluru market faced OCC clearance delays; regulatory pressures persist.
• Rupee volatility and longer shipment times affected export competitiveness.

Capital structure & liquidity

• Total borrowings ₹154.29 crore; debt/equity near 0.87; gearing ~88.7%.
• Current ratio 1.47; liquidity management supported by cash and undrawn facilities.

Governance & leadership

• Board changes: Sunil Kumar Arora (MD) and Sahil Arora (WTD) remained; Sujata Arora joined Nov 2025, left Feb 2026; Varathan Arul appointed Independent Feb 2026.
• Independent directors include Kalasaschar, Bhuta; Sundareshwara resigned Nov 2025; four-member Audit Committee chaired by Kalasaschar.
• 38th AGM scheduled via VC/OAVM on 11 Sep 2026; e-voting and VC guidelines outlined in notice.

Corporate Social Responsibility

• FY26 CSR expenditure ₹9.01 lakh; 2% average net profit obligation ₹2.27 lakh.
• Rural Health Centre at Hosur ongoing; funds via ARO Charitable Trust; CSR policy on company site.

Dividend & AGM logistics

• Dividend for FY2025-26 not recommended.

Key decisions

• Audited standalone results for quarter ended 30 June 2026 approved by the board.
• MD Sunil Kumar Arora re-appointed from 1 April 2027 for 3 years, subject to AGM approval.
• WTD Sahil Arora re-appointed from 15 November 2026 for 3 years, subject to AGM approval.
• Regulatory disclosures under SEBI Listing Regulations disclosed via Annexure-1 and Annexure-2.
• Auditor's report on standalone results issued an unqualified opinion for quarter ended 30 June 2026.
• Standalone segment revenue for quarter ended 30 June 2026: 2,120.73 Lacs.

Meeting Details

• Date 7 August 2026; time and venue not disclosed.

Key Agenda Items

• Approve Audited financial results for quarter ended 30 June 2026 (standalone/consolidated not specified).

Other Notes

• Trading window will remain closed till 9 August 2026.

Dematerialisation processing and listing status

• Securities received for dematerialisation were mutilated and cancelled; registered owner updated within 15 days.
• Dematerialised securities are listed on the stock exchanges where the original issues are listed.
• Details of dematerialised securities were furnished to the stock exchange.