Riba Textiles Ltd

Riba Textiles Limited – Trading Window closed for Designated Persons from 1st October, 2026 till 48 hours after the announcement of Financial Results for the Quarter and half year ended 30th September, 2026

AGM Details

• Date: 24 September 2026; Time: 10:30 AM; Mode: VC/OAVM.
• Record date: 17 September 2026; Postal ballot last date: 24 September 2026.
• Total shareholders on record date: 5105.

Resolutions

• Item 1 (Ordinary): Adopt audited standalone financial statements for FY ending March 31, 2026.
• Item 2 (Ordinary): Re-appointment of director on rotation (Nitin Garg).
• Item 3 (Special): Appointment of Amit Garg as Managing Director for 3 years.
• Item 4 (Special): Appointment of Nitin Garg as Whole-Time Director for 3 years.
• Item 5 (Special): Re-appointment of Shyam Sunder Miglani as Independent Director for 2nd term.

Voting Results

• Item 1 passed with 99.99% in favour.
• Item 2 passed with 85.70% in favour.
• Item 3 passed with 83.78% in favour.
• Item 4 passed with 85.70% in favour.
• Item 5 passed with 99.99% in favour.

Director Changes

• MD appointment: Amit Garg for 3 years.
• Whole-Time Director: Nitin Garg for 3 years.
• Independent Director: Shyam Sunder Miglani re-appointed for 2nd term.
• Rotation-based re-appointment: Nitin Garg.

Financial snapshot

• FY2025-26 total income ₹256.46 crore; PAT ₹8.13 crore; EPS ₹8.42.
• Revenue declined YoY to ₹256.46 crore from ₹296.13 crore; PAT ₹8.13 crore.
• Export revenue ₹228.48 crore (89.3%); domestic ₹18.41 crore (10.7%).
• EPS Basic/Diluted 8.42; prior year 8.81.
• Total assets ₹218.03 crore; assets up from ₹181.45 crore.
• Capex ₹27.4 crore; gross block up to ₹121.58 crore.
• CSR spend ₹22.10 Lacs; CSR initiatives disclosed in the annual report.
• Installed capacity 9,000 MTPA; workforce 800 production.
• Cash and cash equivalents ₹414.66 Lacs; net cash from operating activities ₹2,808.13 Lacs.

Geography & segments

• Single reportable segment: manufacture of terry towels and allied home textiles.
• Export revenue share 89.3%; domestic share 10.7% of revenue.
• Geographic reach includes North America, Europe, Asia, Oceania and India.
• SENSES by Riba revenue not broken out in audited statements.

Capital & liquidity

• Total borrowings ₹75.87 crore as at 31 Mar 2026.
• Credit rating BBB/stable for ₹94 crore bank facilities (as of 1 Jul 2026).
• Debt to asset ratio 0.35.
• Cash and cash equivalents ₹414.66 Lacs.
• Operating cash flow ₹3,003.72 Lacs; net cash from operating activities ₹2,808.13 Lacs.
• Dividend: Not declared.

Governance & leadership

• MD Amit Garg appointed for 3 years.
• Independent Director Shyam Sunder Miglani reappointed for 2nd term.
• Company Secretary Neha Dubey active in compliance function.
• 38th AGM to be held via VC/OAVM on 24 September 2026.

Growth agenda

• Growth strategy to expand SENSES by Riba across e-commerce marketplaces and D2C.
• Capacity expansion: new looms, a new unit, and added shifts.
• Automation investments to protect margins; ERP/IT updates underway.
• Pursue certifications and new geographies to unlock retailers.

CSR & sustainability

• CSR committee active; CSR policy on company website.
• Certifications include GOTS, RCS, BCI, OEKO-TEX, Made in Green, ISO 9001, BSCI.
• Sustainability focus on water/energy initiatives, waste reduction, and renewable energy.
• Annual Heimtextile trade show participation and retailer partnerships.

Outlook & risks

• Outlook: strengthen export franchise, grow SENSES, invest in sustainable, tech-led manufacturing.
• Risks: cotton price volatility, currency fluctuations, freight costs, tariff/regulatory risk.
• Monitor global trade dynamics and cotton supply for margins.

Key dates

• Purpose: record date for 38th AGM.
• Security: Equity shares.
• Record date: 17 September 2026.
• AGM date: 24 September 2026 at 10:30 AM.
• E-voting period: Sept 21–23, 2026.
• Book closure: NA.

AGM Details

• AGM via VC/OAVM on 24 September 2026 at 10:30 AM.

Ordinary Business

• Adopt audited standalone financial statements for the year ended 31 March 2026.
• Re-appoint Nitin Garg as a director, retiring by rotation.

Special Business

• Appoint Amit Garg as MD for three years from 31 Dec 2026 with Rs 15 lakh monthly.
• Appoint Nitin Garg as WTD for three years from 31 Dec 2026 with Rs 15 lakh monthly.
• Re-appoint Shyam Sunder Miglani as Independent Director for a second five-year term (Sept 2026–Sept 2031).
• Remuneration includes personal life insurance premium up to Rs 15 lakh per annum.

Independent Director Reappointment

• Shyam Sunder Miglani reappointed as Independent Director for a second 5-year term, subject to AGM approval.
• Term: 04 Sep 2026 to 03 Sep 2031; AGM approval required.
• Reason: expiry of prior term.
• Profile: Practicing advocate since 1969; LL.B; extensive experience in law, accounts, finance.
• Relationship with other Directors: None.

Managing Director Reappointment

• Amit Garg reappointed as Managing Director for 3 years, subject to AGM approval.
• Term: 30 Dec 2026 to 29 Dec 2029.
• Reason: expiry of previous term.
• Profile: Promoter director since 1994; MBA from Melbourne; 30 years managing the company.
• Relationship with other Directors: Son of Asha Garg; brother of Nitin Garg.

Whole-time Director Reappointment

• Nitin Garg reappointed as Whole-time Director for 3 years, subject to AGM approval.
• Term: 30 Dec 2026 to 29 Dec 2029.
• Reason: expiry of previous term.
• Profile: B.Com; promoter director since 1994; sales/marketing; knowledge of domestic/export markets.
• Relationship with other Directors: Son of Asha Garg; brother of Amit Garg.

Scrutinizer Appointment for AGM

• Vishal Gupta appointed Scrutinizer for AGM e-voting.
• Profile: Practicing Company Secretary (Membership No. 39686); firm M/s Vishal Gupta & Associates.
• Reason: to handle AGM e-voting process.
• Term: for the ensuing AGM.
• Relationship with other Directors: None.

Rating action and instruments

• Action: CARE Ratings reaffirmed RTL's bank facilities ratings with Stable outlook.
• Instruments/Facilities Rated: Long-term bank facilities CARE BBB; Stable; Short-term facilities CARE A3+.
• Rationale: Moderate working capital needs; comfortable capitalization; adequate liquidity; promoters' long-standing experience; diversified client base.
• Weaknesses: highly competitive textile industry; currency and raw material price volatility; geographic concentration.
• Liquidity: Adequate liquidity; free cash and bank balance Rs 4.15 crore; gross cash accruals FY27 Rs 13–14 crore.
• Capital structure: Gearing 0.72x; total debt Rs 75.88 crore; debt protection metrics moderate.
• Operating cycle: 95 days (FY26) vs 72 days (FY25); inventory up; receivables slower.
• Rating sensitivities: Positive—scale beyond Rs 300 crore with ROCE ~13%; Negative—gearing >1.0x or WC cycle >70 days.
• Material changes since last rating: Rating reaffirmed; no change in outlook.
• FY26 financials: Revenue Rs 255.38 crore; PBILDT Rs 22.71 crore; PBILDT margin 8.89%; PAT Rs 8.13 crore.