Sumeet Industries Ltd

Meeting Details

• Board meeting on 4 September 2026 at 11:30 A.M. at 504, Trividh Chamber, Opp. Fire Station, Ring Road, Surat.

Key Agenda Items

• Consider loan(s)/guarantee(s) and/or security for a loan under Section 185.
• Consider loan/guarantee and/or security and/or investments under Section 186.
• Approve variation in objects of the Rights Issue per LOF dated June 8, 2026.
• Approve Directors' Report for the year 2025-26.
• Decide date and venue of the Annual General Meeting.
• Decide and fix the record date and Book Closure.
• Approve Notice of Annual General Meeting.
• Appoint Scrutinizer for the ensuing AGM.

Other Notes

• Trading window closure period not specified.

Resolution

• Special resolution to issue equity shares on conversion of OCRPS to non-promoters on a preferential basis.

Transaction summary

• Target Company: Sumeet Industries Limited.
• Disclosing Party: Eagle Fibre Limited, promoter group.
• Transaction Type: Acquisition of voting rights.
• Pre-Transaction Holding: 2,87,00,000 shares (4.13%).
• Acquired: 10,00,000 shares (0.14%), open market, Aug 14, 2026.
• Post-Transaction Holding: 4.27% (69,47,49,487 shares).
• Date of transaction: Aug 14, 2026.
• Equity share capital before: Rs. 138,94,99,794 (69,47,49,487 shares).
• Equity share capital after: Rs. 138,94,99,794 (69,47,49,487 shares).
• Total diluted share capital after: Rs. 138,94,99,794 (69,47,49,487 shares).

Promoter disclosures

• Filed under Regulation 7(2) and 6(2) of insider trading regulations.
• Promoter group submitted details of buying and selling of equity shares.
• Disclosures dated 17 August 2026.

Transaction details

• Target Company: Sumeet Industries Limited.
• Disclosing Parties (Promoter group): Eagle Fibre Limited; JPB Fibres; Rohan D Modh; Supreme (India) Impex Limited.
• Transaction Type: Acquisition of shares.
• Pre-transaction holding: 17,23,00,000 shares (24.80% voting rights).
• Transaction Details: Acquired 1,49,00,000 shares (2.14%), equity shares, open market.
• Post-Transaction Holding: 18,72,00,000 shares (26.94%).
• Date of Transaction: August 12, 2026.
• Equity share capital before and after: Rs 138,94,99,794 (69,47,49,487 shares).
• Total diluted share capital after: Rs 138,94,99,794 (69,47,49,487 shares).

Promoter trading disclosure

• Date of disclosure filing: 12 August 2026.
• Promoter group disclosure under Reg 7(2) SEBI PIT 2015 for buying/selling Sumeet Industries shares.
• Details provided in prescribed format; enclosed with the filing.

Financial Performance

• Q1 FY27 revenue rose over 9% YoY to INR 272.74 crores.
• EBITDA was INR 8.85 crores with 3.24% margin.
• PAT for the quarter was INR 1.14 crores.
• Profitability affected by temporary industry headwinds from crude oil, PTA/MEG and freight.
• Demand across apparel, home textiles, and industrial applications remained healthy.

Operations and Strategy

• Q1 production volume declined 17% versus last quarter due to volatile raw materials and a 15-day shutdown.
• Rights issue raised INR 199.75 crores; net proceeds about INR 194.90 crores.
• Net proceeds earmarked for working capital (~INR 100 crores) and CP-plant integration (~INR 50 crores).
• Additionally, INR 23 crores for debt repayment and INR 22 crores for solar plant.
• Acquired Narkoda Limited CP plant for INR 23.47 crores; 1,40,000 TPA PET chips; capacity doubles after recommissioning.
• Nakoda CP plant is expected to be a major growth engine; commissioning next financial year with 60 days to optimum capacity.
• FY27 revenue growth guidance >30%; EBITDA around 6%; PAT in 3.5–4%.

Key Asset and Capacity Moves

• CP capacity is 300 tons; drawing capacity around 240 tons per day.
• 30,000 TPA capacity already commissioned in Q2; Nakoda contributes to capacity uplift.
• 30%–35% of product mix is value-added yarn.

Balance Sheet and Cash Flows

• As of March 2026, long-term debt was INR 86 crores; short-term borrowings INR 74 crores.
• Debt reduced by INR 23 crores following rights issue and repayments.
• Working capital funding to come from rights-issue proceeds; finance costs expected to fall; CC interest to be negligible.
• No receivables outstanding beyond six months.
• Receivables ~30–45 days; payables ~30 days.

Projects and Capex

• Nakoda CP plant commissioning targeted in FY28, with second quarter timing discussed.
• The CP plant will reach 100% capacity within 60 days of commissioning.
• 5 MW captive solar plant to be commissioned by last quarter; power cost savings from renewables.
• Renewable power is expected to yield about INR 25 crores per annum in savings.
• Nakoda plant cost is included in the INR 90 crores capex.

Outlook and Guidance

• FY27 revenue growth target >30%; EBITDA around 6%; PAT 3.5–4%.
• Export plan under consideration; currently no exports; deemed exports; no extra certifications required.
• Value-added yarn share targeted at 30–35% of product mix.

Q&A Highlights

• Q1 volumes fell 17% due to input volatility and maintenance.
• Long-term debt INR 86 cr; short-term INR 74 cr; post-rights debt to reduce.
• Margins to exceed 25% to support 6% EBITDA, per management.
• Top-10 agents contribute about 50% of revenue; broadening customer base.
• Export path: no exports now; plan to export value-added yarns; deemed exports.
• Receivables collection target around 30–45 days; payables around 30 days.

Business Overview

• Integrated polyester producer of PET chips, POY, FDY, PTY.
• Acquired by Eagle Group in July 2024 enabling governance and scale.

Key Operational Highlights

• Rights issue completed; net proceeds ₹194.90 Cr.
• Nakoda CP Plant acquisition; 140,000 TPA; restart FY27-28.
• 30,000 TPA capacity expansion planned over 3 years.
• Renewables: ~30% energy from renewables; 14 MW solar commissioned.
• 5 MW captive solar plant commissioned.

Financial Performance

• Revenue trend: FY24-26 ₹984.9 Cr → ₹1,050.4 Cr.
• FY26 EBITDA ₹60.8 Cr; margin ~5.8%.
• FY26 PAT ₹23.6 Cr; margin ~2.2%.
• Q1FY27 revenue ₹272.4 Cr; EBITDA ₹8.9 Cr; PAT ₹1.1 Cr.
• CFO FY26 ₹-35.37 Cr; Total assets ₹550.8 Cr.

Capital Structure & Liquidity

• Rights issue: ₹199.75 Cr; net proceeds ₹194.90 Cr.
• Utilisation: working capital ₹100 Cr; Nakoda integration ₹49.90 Cr; debt repayment ₹23 Cr.
• 5 MW captive solar facility funded ₹22 Cr.
• Cash at end FY26 ₹38.65 Cr; long-term borrowings ₹1.78 Cr; short-term ₹0.21 Cr.

Strategic Priorities & Outlook

• FY27 targets: >30% revenue growth; EBITDA around 6%; PAT margin 3.5-4%.
• Shift to value-added yarns up to 50% capacity.
• 30,000 TPA expansion planned over 3 years; automation and efficiency focus.
• Export-ready platform with in-house lab testing and dedicated export team.
• Renewables strategy to reduce energy costs; ~60% energy from renewables planned.

Risks & Mitigation

• Raw material and pricing linked to petrochemical cycles; mitigated by integration and efficiency.
• FX exposure and working capital volatility.
• Industry competition from larger players.

Governance & Leadership

• Acquired by Eagle Group in July 2024; governance strengthened.
• Executive Directors: Radheshyam Jaju (Chairman), Pratik Jaju (MD), Rohan Modh.