Sarthak Metals Ltd

AGM Details

• AGM held on 18 August 2026 at 12:30 PM IST, Bhilai.
• Mode: physical AGM with remote e-voting and ballot voting.
• Venue: Hotel Ashish International, G.E. Road, Bhilai.
• Quorum present; meeting concluded at 1:14 PM.
• Remote e-voting period: 15–17 August 2026.
• Chairman presided; all directors present except one independent.
• Scrutinizer appointed: Atul Jain.

Key Resolutions

• Adoption of Audited Financial Statements – Ordinary; results to be disclosed.
• Appointment of Director retiring by rotation – Ordinary; results to be disclosed.
• Appointment of Ushasree Bhagavatula as Independent Women Director – Special; results to be disclosed.
• Approval of Material Related Party Transactions with M/s Bansal Brothers – Ordinary; results to be disclosed.
• Ratification of remuneration of Cost Auditor – Ordinary; results to be disclosed.
• Voting results pending disclosure to exchanges.

Director Changes

• Appointed Ushasree Bhagavatula as Independent Woman Director.

Auditors & Related Party Transactions

• Remuneration of Cost Auditor ratified.
• Approval of material RPT with M/s Bansal Brothers.

Filing Delay

• Delay in submission of AGM proceedings acknowledged; filed Aug 19, 2026.

AGM Details

• AGM held on 18 August 2026; e-voting and poll results submitted with Scrutinizer Report.

Resolutions

• All resolutions placed before the meeting were approved by Members with the requisite majority.

AGM details

• Date and time: 18 August 2026, 12:30 PM IST.
• Venue: Hotel Ashish International, Bhilai, Chhattisgarh.
• Mode: physical AGM with remote e-voting and ballot facility.

Key resolutions

• Adoption of Audited Financial Statements — Ordinary Resolution.
• Appointment of director retiring by rotation — Ordinary Resolution.
• Appointment of Ushasree Bhagavatula as Independent Women Director — Special Resolution.
• Approve material related party transactions with M/s Bansal Brothers — Ordinary Resolution.
• Ratify remuneration of Cost Auditor — Ordinary Resolution.

Voting status

• Voting conducted via remote e-voting and ballot; results to stock exchanges within two working days.
• Scrutinizer appointed; results and Scrutinizer's report to be posted on websites.

Q1 2026 revised financials

• Revised standalone quarterly financials for quarter ended 30 June 2026 filed after 13 August 2026 meeting.
• Clarification notes state inadvertent error in Cost of Materials Consumed vs Purchases of Stock-in-Trade; no PBT/PAT change.
• Results reviewed by Audit Committee and approved by Board on 13 August 2026.
• Quarter revenue from operations 5,521.23 lakhs; total income 5,660.51; PAT 132.92 lakhs.
• Basic and diluted earnings per share for quarter: Rs 0.97.
• Company operates in single segment: Cored Wires.
• Unrealised foreign currency gains on 30 June 2026: Rs 6.34 lakhs.
• Balance sheet highlights: Total assets 13,595.05 lakhs; total equity 12,548.45 lakhs; borrowings 523.26 lakhs.
• No investor complaints in the quarter.

Business overview

• Core business: cored wires, aluminium flipping coils, flux-core wires.
• Strategic focus on welding, biotech pilot, and disciplined capital deployment.
• HQ in Bhilai; group entities: Sarthak Metals Ltd, Sarthak Energy Pvt Ltd, Bansal Brothers.

Key operational highlights

• Q1 FY27 revenue from operations ₹55.21 Cr; YoY +19%, QoQ -11%.
• Total income ₹56.61 Cr; YoY +21%, QoQ -10%.
• EBITDA (excl. OI & EI) ₹1.55 Cr; margin 2.81%.
• PBT ₹2.07 Cr; PAT ₹1.33 Cr; EPS ₹0.97.
• Welding division revenue ₹5.1 Cr; YoY +89%.
• Welding volumes 458 tonnes; price realization ₹1.12 lakh/tonne.
• Cored wires capacity 10,000 TPA; Aluminium flipping coils 15,000 TPA; Flux-cored wires 3,600 TPA.
• Dealer network expanded to 10+ across 5+ states.
• Welding annual sales target ₹25 Cr for FY27.
• Biotech Nagpur pilot facility; ₹0.50 Cr invested.
• Solar power capacity 400 KW; ~50% electricity cost reduction.

Financial performance

• Revenue from operations ₹55.21 Cr; YoY +19%.
• Total income ₹56.61 Cr; YoY +21%.
• EBITDA ₹1.55 Cr; margin 2.81%.
• PBT ₹2.07 Cr; PAT ₹1.33 Cr; EPS ₹0.97.

Capital structure & liquidity

• No material changes to capital structure disclosed.

Strategic priorities & outlook

• Long-term steel sector growth cited; focus on core cash-generating businesses.
• Biotech investments pursued selectively; prioritizing viability and core cash flow.
• Welding growth targets and dealer expansion to broaden market reach.
• Maintain discipline on capital deployment and capacity utilization.

Risks & mitigation

• Aluminium scrap constraints and price volatility; mitigated by inventory and pricing discipline.
• Global supply disruptions; mitigated via reliable sourcing and buffer stock.

Governance & leadership

• MD Anoop Kumar Bansal; CEO Mayur Bhatt; WH Director Sanjay Shah.
• IPO in 2017; BSE listing; three group entities.

Financial results

• Unaudited quarterly results for quarter ended 30 June 2026 approved with Limited Review Report.
• Results reviewed by Audit Committee and approved by Board on 13 August 2026.

Board committee reconstitution

• Re-constitution of Audit, Nomination & Remuneration, Stakeholders Relationship, and CSR Committees; effective 24 Aug 2026.
• New committee directors: Dwadasi Venkata Giri ( Chair, Independent ); Sunil Dutt Bhatt (Independent); Ushasree Bhagavatula (Addl Independent Women Director).

Cost audit

• Cost Audit Report for FY 2025-26 approved.

Financials

• Revenue from operations rose to ₹192.25 crore, up 8% YoY.
• EBITDA ₹7.90 crore with 4.1% margin.
• PAT ₹4.61 crore, up 12%.
• EPS ₹3.37 (basic and diluted).

Core businesses & growth

• Cored Wires volumes grew 14% in FY26.
• Flux Cored Wires capacity raised to 3,600 TPA.
• Welding consumables revenue ₹16 crore; >1,400 tonnes sold.
• Aluminium Flipping Coils capacity 15,000 TPA.
• Q4 volumes up 35% YoY; 75% recycled aluminium.

Diversification & frontier

• Biotech SSF Nagpur pilot started May 2025; potential ₹1,000 crore.
• Flux Cored Wires expansion targets industrial welding and infra markets.
• Three-pillar strategy: core wires, welding, biotechnology; export growth.

Capacity & operations

• Capacities: Cored Wires 10,000 TPA; FCW 3,600; Coils 15,000.
• Bhilai hosts 3 facilities; ISO 9001:2015; in-house lab; BIS/RDSO approvals.
• Robust warehousing supports prompt delivery and supply continuity.

Dividend & capital

• Dividend for FY26 did not declare.
• Equity capital ₹13.69 crore; no share issues or buybacks; debt-to-equity 0.05x.

Governance & board

• Board comprises 7 directors; 3 exec, 3 independent, 1 non-exec chair.
• Ushasree Bhagavatula appointed as Independent Women Director; subject to AGM.
• Sunil Dutt Bhatt reappointed Independent Director for five years from Aug 3, 2026.

Related party transactions

• Material related party transactions with M/s Bansal Brothers; max ₹75 crore; 39.01% turnover.
• RPTs reviewed by Audit Committee; arm’s length; shareholder approval at AGM.
• Past FY24 transactions: purchases ₹13.17 crore; sales ₹8.40 crore.

CSR & sustainability

• CSR spend ₹43.39 lakh; 2% of average net profit ₹42.95 lakh.
• 75% recycled aluminium; 400 kW solar; 4 CSR meetings.

Outlook & risks

• India to remain fastest-growing major steel market; capex supports demand.
• Safety, commodity price volatility, regulatory, supply chain, and credit risks.

Independent Director appointment

• Appointed Mrs. Ushasree Bhagavatula as additional Independent Women Director, effective 10 July 2026.
• Appointment valid up to the ensuing AGM.

AGM notices and timelines

• Draft Notice for 31st AGM and Directors’ Report with annexures approved.
• 31st AGM fixed for 18 August 2026 (Tuesday).
• Cut-off date for voting eligibility fixed as 11 August 2026.

E-voting and scrutineer arrangements

• Scrutinizer appointed: Atul Jain and Co., Chartered Accountants.
• M/s Bigshare Services Private Limited appointed for remote e-voting.

Annexure disclosures on appointment

• Reason for change: appointment as additional Independent Women Director.
• Date of appointment: 10 July 2026 up to ensuing AGM.
• Background: MBA in HR from Symbiosis University, Hyderabad.
• Inter-se relationships: none with other Directors or KMP.
• Directorships: none elsewhere except Sarthak Metals.
• Not debarred from Director office by SEBI or authorities.