Sarla Performance Fibers Ltd

AGM Details

• Held on 29 July 2026 at 11:00 IST via VC/OAVM.
• Meeting concluded at 12:15 IST.
• Remote e-voting window: 24–28 July 2026, 9:00 AM–5:00 PM.

Resolutions Put to Vote

• Adoption of standalone and consolidated financial statements — Ordinary; results pending.
• Final dividend of ₹2 per equity share — Ordinary; results pending.
• Re-appointment of Neha Krishna Jhunjhunwala by rotation — Ordinary; results pending.
• Ratification of remuneration payable to Cost Auditors — Ordinary; results pending.
• Remuneration revision for Executive Director — Special; results pending.
• Waiver of recovery of excess remuneration to Executive Director — Special; results pending.
• Remuneration of Executive Directors under CA/SEBI rules — Special; results pending.

Director & Governance

• Executive Director Neha Krishna Jhunjhunwala up for re-appointment by rotation.

Audit Observations

• Statutory Audit report had a qualified opinion on exceptional loss from sale of preference shares.
• Secretarial Audit report contained no qualifications.

Dividend & Remuneration Details

• Final dividend proposed: ₹2 per equity share.

AGM Details

• Held on 29 July 2026 at 11:00 A.M. IST via VC/OAVM.

Resolutions Proposed

• Resolution 1 (Ordinary): Adoption of standalone and consolidated financial statements.
• Resolution 2 (Ordinary): Declaration of final dividend of ₹2 per equity share.
• Resolution 3 (Ordinary): Re-appointment of Neha Krishna Jhunjhunwala, director retiring by rotation.
• Resolution 4 (Ordinary): Ratification of remuneration payable to Cost Auditors.
• Resolution 5 (Special): Revision in remuneration of Executive Director.
• Resolution 6 (Special): Waiver of recovery of excess remuneration paid to Neha Jhunjhunwala.
• Resolution 7 (Special): Approval of remuneration of Executive Directors under Section 197 and Regulation 17(6)(e).

Voting Status

• Voting results pending; final outcomes to be declared within two working days.

Directors & Remuneration

• Re-appointment of Neha Krishna Jhunjhunwala as director retiring by rotation.

Meeting Details

• Board meeting scheduled for August 5, 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve unaudited standalone and consolidated quarterly results for quarter ended June 30, 2026, with Limited Review.

Other Notes

• Trading window closed for designated persons and immediate relatives from July 1, 2026; reopens after results are public.

Dematerialisation status

• Securities for dematerialisation in the quarter were confirmed to depositories by the RTA.
• Securities dematerialised have been listed on the stock exchanges where the earlier issued securities are listed.
• Certificates for dematerialisation were mutilated and cancelled after verification, with depository's name substituted as registered owner within timelines.

Financial snapshot

• Standalone revenue: INR 396.34 crore; YoY fall ~6.5%.
• Consolidated revenue: INR 401.23 crore.
• Standalone EBITDA margin: 14.70%; normalised margin ~19.00% (ex MTM).
• One-time MTM loss on Euro borrowings: INR 17.58 crore.
• PAT: INR 26.25 crore; PAT margin 6.62%; excl. exceptional item 15.38%.
• Debt-to-equity: 0.38x; on track to gross debt-free status.
• Operating cash flow: approx. INR 81 crore.
• Board approved buyback: INR 44 crore at INR 110 per share.
• Final dividend proposed: INR 2 per equity share; promoter group waived.

Strategic focus & innovations

• Launched COMFILO: India’s first barre-free nylon yarn; strong market reception.
• Introduced cooling yarn with advanced moisture management; nylon-based stretch yarn in development.
• Value-added yarns contribute ~50% of revenue; higher share planned.
• Nylon yarn volume: ~49% of sales; targeted ~60% in coming years.
• Invested INR 4.8 crore in FY2025-26; ~INR 125 crore over six years; ~INR 20 crore planned for FY27.
• SAP rollout implemented to improve operations and profitability visibility.
• Domestic revenue share: ~39% in FY26; target 55-60% in next years.
• Exports accounted for ~60% of revenue; presence in 62 countries.

Market dynamics & outlook

• Global MMF market: USD 175B in 2024; to USD 258B by 2028 (7.9% CAGR).
• Global textile market: USD 760B in FY25-26; projected USD 974B by 2030.
• India-UK and India-EU FTAs bolster export access; PM MITRA parks underway.
• Indian MMF/tech textiles growth supported by policy incentives and ESG trends.
• Near-term risks: energy/logistics costs, tariff shifts, and geopolitics affecting supply chains.

Governance, risk & controls

• Board: 6 directors (3 Executive, 3 Independent); 1 Woman Director.
• Independent Directors: confirmed independence; familiarisation and annual Board evaluation underway.
• Audit: CNK & Associates; qualified opinions on standalone and consolidated due to NCRPS sale.
• Secretarial audit flagged pending regulator approvals; actions underway.
• Internal controls strengthened via SAP; no material weaknesses observed.
• ESOP: 41,75,150 options approved; none granted during FY25-26.

CSR & sustainability

• CSR obligation: INR 86.31 lakh; spend INR 82.00 lakh; excess INR 2.02 lakh set off.
• CSR expenditure focused on healthcare; Promoter Trust contributions noted.
• Wind energy: 9 wind turbines across 3 states; 14.75 MW capacity.
• In-house solar energy contributes ~40% of consumable energy; dyeing/upstream efficiency efforts.
• Dope-dyed nylon and recycled polymers under R&D for sustainability.

Capital allocation & shareholder matters

• Share capital unchanged; Authorised INR 1,000 crore; Paid-up INR 83.503 crore.
• Promoter group stake ~57.11% as of 31 March 2026.
• Final dividend proposed: INR 2 per share; promoter waiver in effect.
• Share buyback approved: INR 44 crore at INR 110 per share.
• ESOP 2025: options outstanding = 0; no grants in FY25-26.

AGM, disclosures & related-party notes

• 33rd AGM: 29 July 2026 via VC/OAVM; record date 22 July 2026.
• Auditors: CNK & Associates; qualified opinions due to NCRPS sale; regulator approvals pending.
• Related party transactions are arm’s length; disclosed in Form AOC-2 and Notes.
• Dividends paid electronically; no physical warrants; IEPF transfers of prior dividends completed.
• Corporate governance certifications obtained; Board performance evaluated; familiarisation programs conducted.

Risks & forward-looking statements

• Key risks: raw material price volatility and FX exposure; regulatory changes and export controls.
• Geopolitical tensions and logistics disruptions may affect margins and supply chains.
• Cybersecurity and IT risks managed through robust controls and monitoring.