Deepak Spinners Ltd

Instruments and ratings

• Long-term cash credit Rs 60 crore: A- (Stable); outlook changed to Stable from Negative
• Export Packing Credit (Interchangeable): Rs 15.04 crore; A2+; reaffirmed
• Bill Discounting (Interchangeable): Rs 15.04 crore; A2+; reaffirmed
• Credit Exposure Limit: Rs 1.00 crore; A2+; reaffirmed
• Bank Guarantee: Rs 2.00 crore; A- (Stable); reaffirmed with outlook Stable
• Unallocated limits: Rs 16.10 crore; A- (Stable)/A2+; reaffirmed with outlook Stable

Rating agency and date

• Agency: ICRA Limited
• Rating date: 29 Sep 2026; prior letters dated 22 Jul 2026

Rationale and changes

• Outlook revised from Negative to Stable for long-term cash credit
• Ratings reaffirmed across instruments; no downgrade
• Surveillance due within one year; changes in terms may trigger review

Deepak Spinners Ltd: Trading Window closed from 1 October 2026 until 48 hours after declaration of Unaudited Financial Results for the quarter ended 30 September 2026

CMD Re-appointment

• Shareholders approved re-appointment of Shri Yashwant Kumar Daga as Chairman and MD five years from 23 December 2026.
• Appointment effective 23 December 2026 for five years, without remuneration.
• Reason for change: Re-appointment.
• Disclosure of relationships between directors: Nil.

AGM Details

• Date: 13 August 2026.
• Mode: Video Conferencing with remote e-voting.
• Attendees via VC: Promoter 5, Public 32; total 37.
• Shareholders on record: 9,072.

Resolutions and outcomes

• Resolution 1 (Ordinary): Adoption of financial statements and reports passed.
• Resolution 2 (Ordinary): Appointment of director by rotation passed.
• Resolution 3 (Ordinary): Remuneration of Cost Auditors for FY2027 passed.
• Resolution 4 (Special): Re-appointment of Shri Yashwant Kumar Daga as Chairman and MD passed.

AGM details

• AGM held on 13 August 2026; Consolidated Scrutinizer's Report enclosed.

AGM Details

• AGM held on 13 August 2026 via VC/OAVM from 4:05 pm to 4:44 pm.

Resolutions

• Ordinary: Adoption of audited financial statements and reports for year ended 31.03.2026.
• Ordinary: Appointment of Yashwant Kumar Daga as director (retiring by rotation).
• Ordinary: Ratification of remuneration of cost auditors.
• Special: Re-appointment of Yashwant Kumar Daga as Chairman and Managing Director from 23 Dec 2026.

Voting & Results

• Voting results to be declared separately per Listing Regulations.

Board update

• Unaudited standalone Q1 results for quarter ended 30 June 2026 were taken on record.
• Limited Review Report by statutory auditors enclosed.
• Board meeting held from 4:40 p.m. to 5:45 p.m.

Financial snapshot

• Revenue from operations: Rs 53,415.71 lakh.
• Total income: Rs 53,862.04 lakh.
• Profit after tax: Rs 363.78 lakh; prior year loss Rs 1,019.01.
• Total comprehensive income: Rs 427.31 lakh.
• Basic earnings per share: Rs 5.06.
• Profit before tax: Rs 482.59 lakh; deferred tax credit Rs 118.81.
• Deferred tax credit of Rs 118.81 lakh; current tax nil.
• Dividend declared for 2025-26: none; no dividend recommended.

Energy & capex updates

• Guna unit has 4 MW solar plant; first full year of operation completed.
• Baddi unit to add 2.976 MW solar plant in 2026-27 to cut costs.
• 3 MW DC solar plant installed at Baddi; further expansion planned.
• Total capex on energy conservation: Rs 7.15 crore.
• Guna solar generated over 10 million kWh; about Rs 8 crore saved; ~8,000 tonnes CO2 avoided.

Capital structure & liquidity

• Equity capital: 7,189,368 shares; paid-up Rs 718.94 lakh.
• Total equity: Rs 22,939.49 lakh; retained earnings Rs 19,191.77.
• Short-term borrowings: Rs 3,048.82 lakh; undrawn facilities: Rs 3,144.01 lakh.
• Current ratio: 1.82; debt-equity: 0.13; DSCR: 0.70.
• Return on equity: 1.60%; return on capital employed: 2.80%.
• Domestic revenue: Rs 49,487.78 lakh; export revenue: Rs 3,927.93 lakh.

Governance & board changes

• Board strength: 7 directors; 5 independent; independent directors 50%.
• Shri Yashwant K. Daga: CMD; tenure ends 22 Dec 2026; recommended for reappointment.
• Shri Shantanu Daga resigned 14 Sep 2025.
• Shri Pradip Kumar Daga, Chairman Emeritus, passed away on 18 Nov 2025.
• Shri Rajaram Kankani appointed President & Whole-Time Director from 22 May 2025 to 21 May 2028.
• Special postal ballot approvals: Alteration in MOA and AoA approved Jan 2026.

Audit, controls & compliance

• Statutory auditors: Salarpuria & Partners; Cost Auditor: Shakti K. & Associates for 2026-27.
• Secretarial audit: A. Arora & Co.; no reservations noted.
• Internal financial controls robust; quarterly internal audits; no fraud reported.
• Past penalties: BSE Rs 5.61 lakh; late investor-complaint filing Rs 2,000; both paid.
• Audit reports unqualified; compliance certificate issued for Corporate Governance.

CSR & ESG

• Not eligible to incur CSR expenditure in 2025-26; CSR spend nil.
• Two percent average net profit criteria not applicable; set-off of Rs 74.78 lakh available.
• CSR committee did not meet; CSR policy hosted on company website.

Contingent liabilities & commitments

• Contingent liabilities include: excise duty Rs 2.34 lakh; income tax Rs 46.63 lakh.
• GST return discrepancies Rs 1.58 lakh; employee lawsuits Rs 11.04 lakh.
• Demand for electricity cess Rs 44.89 lakh; no provisions made given favorable outlook.
• Commitments: contracts remaining for capital accounting Rs 3,396.46 lakh.
• Refunds of government subsidies may be due if conditions are not met.

Shareholder info & market visibility

• Annual General Meeting: 13 August 2026 via VC; book closure 7-13 Aug 2026; cut-off 6 Aug.
• Listed on BSE; ISIN INE272C01013.
• Dematerialisation: 97.12% of shares in demat form.
• Escrow Demat: 890 unclaimed shares; IEPF transfers as applicable; Nodal officer Puneeta Arora.
• Top holders: Yashwant Daga 13.88%; Mangalam Engg 12.09%; Contransys 5.59%.

Related parties & policy

• Related party transactions on arm’s length basis; RPT policy available on website.
• KMP remuneration disclosed; inter-company transactions with Deepak Industries, Contransys, Merlin Holdings.
• Some KMPs have current or past relationships with related entities; disclosures in notes to financials.