Cheviot Company Ltd

Cheviot Company Limited – Trading Window closed from 1 October 2026 until 48 hours after declaration of unaudited standalone financial results for the quarter and half year ending 30 September 2026.

Order details and financial impact

• Awarding entity: The Office of the Jute Commissioner, Government of India.
• Nature: supply of 580 gms B-Twill Sacking Type-A and Type-B jute bags.
• Execution period: September 2016 to December 2020.
• Impact: expected increase in sales realisation by ₹7.45 crores.
• Terms: price revision only; other terms unchanged; price fixation under Jute & Jute Textiles Control Order, 2016.
• Domestic entity: government of India; no related party disclosed.

AGM details

• AGM held on 6 August 2026 at 11:00 IST via VC/OAVM.
• Quorum present with 47 members.
• Meeting concluded at 11:55 IST.

Key resolutions and outcomes

• Ordinary: Adoption of audited financial statements for the year ended 31 March 2026; passed by e-voting.
• Ordinary: Dividend of ₹25 per ordinary share approved; total payout ₹14.60 crore.
• Ordinary: Re-appointment of Utkarsh Kanoria by rotation; eligible for re-appointment.
• Ordinary: Payment of commission to non-executive directors including independent directors; approved.
• Ordinary: Ratification of remuneration payable to the Cost Auditor for FY 2027; approved.

Financial performance

• Revenue from operations ₹17,055.16 Lakhs for the quarter ended 30 Jun 2026.
• Total income ₹20,693.76 Lakhs; QoQ up from ₹11,694.18 Lakhs.
• Profit before tax ₹5,540.67 Lakhs; swung from a loss of ₹854.48 Lakhs prior quarter.
• Tax expense ₹1,011.52 Lakhs; PAT ₹4,529.15 Lakhs.
• Earnings per share ₹77.53 (basic and diluted, quarterly).
• Single segment: Jute Goods.

Cost structure

• Cost of materials consumed ₹11,706.86 Lakhs.
• Changes in inventories: negative ₹138.67 Lakhs.
• Employee benefits expense ₹1,709.17 Lakhs.
• Depreciation ₹193.65 Lakhs; Finance costs ₹12.04 Lakhs.
• Other expenses ₹1,670.04 Lakhs.

Comprehensive income & notes

• Total other comprehensive income ₹326.95 Lakhs; total comprehensive income ₹4,856.10 Lakhs.
• Unaudited standalone results approved; limited review by auditors with unmodified opinion.
• No subsidiary/associate/joint venture; single primary segment disclosed.

Meeting Details

• Date: 5 August 2026; Time and venue not disclosed.

Key Agenda Items

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

Other Notes

AGM Details

• AGM date/time/mode: 6 August 2026, 11:00 IST, via VC/OAVM.
• Record date for dividend/voting: 30 July 2026.
• Dividend payment date if approved: 11 August 2026.

Key Resolutions

• Adopt audited financial statements for year ended 31 March 2026.
• Declare dividend of ₹25 per share on 58,41,875 shares; total ₹14,60,46,875.
• Re-appoint Utkarsh Kanoria (DIN 06950837) who retires by rotation.
• Authorize payment of non-executive director commissions up to 1% of net profits.
• Ratify cost auditor remuneration of ₹40,000 for year ending 31 March 2027.

Director Changes

• Utkarsh Kanoria to be re-appointed; Wholetime Director.
• Remuneration last drawn: ₹368.52; attendance 4/4 meetings.
• Tenure to continue until unexpired term; remuneration to be set by Board within limits.

Voting Status

• Voting results to be announced post-AGM; not provided in this notice.

Financial snapshot

• Revenue from operations: ₹54,740.51 Lakhs in FY26, up from ₹43,942.61 in FY25.
• Operating profit after depreciation: ₹6,703.75 Lakhs vs ₹4,608.43 in FY25.
• Profit after tax: ₹5,169.15 Lakhs; EPS ₹88.48 (FY26) vs ₹98.08 (FY25).
• Net profit margin: 9.44% in FY26 vs 13.14% in FY25.
• Export CIF revenue: ₹14,852.52 Lakhs; down from ₹18,961.06 in FY25.
• Total equity: ₹70,585.10 Lakhs; up from ₹65,094.57.
• Capex: ₹1,081.89 Lakhs; includes rooftop solar 2,274.48 kWp.
• Staff strength: 3,838 employees on rolls as of 31 March 2026.

Geography & exports

• Revenue within India ₹39,616.71 Lakhs; Outside India ₹14,852.52; total ₹54,469.23.
• Export markets span 35+ countries; USA sales ₹5,860.99 included in outside India.
• Non-current assets outside India: Nil.

Dividend & capital return

• Final dividend proposed ₹25 per share on 5,841,875 shares; total ₹1,460.47 Lakhs; record date 30 July 2026.
• Previous year final dividend ₹5 per share paid August 12, 2025.
• No transfer to reserves from profits for FY2025-26.

Capital structure & debt

• Current borrowings ₹725.10 Lakhs from Axis Bank; secured by current assets and Budge Budge properties.
• Interest rate at Repo plus 3.25%, presently 8.50% p.a.
• Debt-equity ratio 0.01x; current ratio 5.14x; no long-term borrowings outstanding.

Operations & assets

• Capex ₹1,081.89 Lakhs; rooftop solar 2,274.48 kWp for captive consumption.
• Budge-Budge unit capacity 160 MT/day; Falta unit uses 100 automatic Sulzer looms for exports.
• Employees on rolls: 3,838; production largely flat, with capacity under-utilisation due to raw jute shortage.
• Domestic demand improved; exports affected by high raw jute prices and freight costs.

Governance & controls

• Board comprises eight directors; four independent, including one woman independent.
• Board meetings held: 4 during the year; dates: May 26, Aug 6, Nov 11, Feb 14, 2026.
• Audit Committee: three members; Chair Siddharth Jhajharia; five meetings during year.
• Independent directors held two separate meetings on Nov 11, 2025 and Feb 23, 2026.
• Secretarial auditor: MR & Associates; Form MR-3; no fraud reported.
• CSR Committee: three members; meetings: May 16, 2025 and Jan 24, 2026.

CSR & sustainability

• CSR spend ₹111.19 Lakhs; 2% of average net profits ₹110.76; activities in education, health care, sport.
• Annexure II CSR report forms part of the report.

Risks & outlook

• Jute industry faced raw jute shortage and high prices; demand subdued domestically and abroad.
• West Asia conflict and tariffs pose export risk; outlook stabilising but uncertain.
• Eco-friendly packaging demand rising; could boost jute packaging prospects.
• Labour-intensive industry; wage pressures; manpower shortages may affect pricing.

Shareholding & promoter

• Promoter group hold 74.88% equity as of 31 Mar 2026.
• HIPL holds 70.61%; Kanoria family 0.44%.
• Total issued shares: 58,41,875; paid-up ₹584.54 Lakhs; fully paid.
• Demat trading; ISIN INE974B01016; listed on BSE and NSE.
• Past buy-backs: 2020-21 2,00,000; 2021-22 2,50,000; 2024-25 1,75,000.

Demat/Remat processing and listing

• Demat Transfer Register for 01/04/2026 to 30/06/2026 sent to depositories and stock exchanges.
• Dematerialised securities received from DPs were destroyed, mutilated, or cancelled within the stipulated time.
• Dematerialised securities were reported to stock exchanges where shares are listed.
• Period covered for dematerialisation: 01/04/2026 to 30/06/2026.