Talbros Engineering Ltd

Board approvals and AGM updates

• Approved unaudited standalone and consolidated Q1 FY2026-27 results for quarter ended June 30, 2026.
• Reviewed and approved Directors' Report and Corporate Governance Report for year ended March 31, 2026.
• Remuneration revision for M/s Rakesh Raj & Associates as statutory auditors for FY2026-27 approved, subject to AGM approval.
• Record date for dividend and e-voting cut-off fixed at September 23, 2026.
• Notice for 40th AGM approved for Sept 30, 2026 via video conference.
• Appointed M/s Anuj Gupta and Associates as Scrutinizer for AGM voting.

Rating Action Details

• CARE Ratings reaffirmed TEL's bank facilities ratings.
• LT facilities ₹35 crore; CARE A-; Stable; enhanced from ₹27.50 crore.
• LT/ST facilities ₹60 crore; CARE A-; Stable / CARE A2+; reduced from ₹70 crore.
• Outlook: Stable.
• Maturity: LT loan due March 2029.

Rationale – Strengths

• Experienced promoters with long track record and OEM relationships.
• Diversified segments with growing export and domestic SOB.
• TOI rose to ₹539.22 crore; PBILDT margin 11.84%.
• Gearing 0.70x; interest coverage 5.12x; debt coverage moderate.
• Margin volatility due to steel prices and forex risk.
• Working capital intensive; operating cycle 93 days.
• 26% of sales from exports; OEMs remain key.
• Liquidity adequate; GCA ₹50 crore vs ₹15.42 crore repayments FY27.
• Capex ₹45 crore in FY27; funded by ~₹30 crore debt.
• Current ratio 1.18x; bank limits utilization ~70%.

Material Changes vs Previous Rating

• Ratings reaffirmed; LT facility increased from ₹27.50 to ₹35 crore.
• LT/ST facility reduced from ₹70 to ₹60 crore.
• Outlook unchanged: Stable.

Dematerialisation processing and listing

• Securities for dematerialisation were processed and confirmed to depositories.
• Dematerialised securities have been listed on the exchanges where prior issues are listed.
• Physical certificates were mutilated and cancelled; depository name substituted as registered owner within 15 days.

New premises acquisition

• Acquisition of 40,000 sq ft industrial premises at Plot No. 70-B, Sector 3, Pithampur, MP.
• Total consideration for the purchase is Rs 25 crore.
• Formal agreement to sell being executed with M/s Lakhani Rubber Products Private Limited.
• Purpose: future expansion and development of new projects.
• Seller not part of Talbros promoter group; related-party concerns not applicable.
• No issuance of shares or loans; no related party transaction.
• Commencement of commercial production to be communicated separately.
• Annexure A with SEBI disclosures attached.

Internal auditor

• M/s. Bansal Harshit & Associates appointed as internal auditor for FY 2026-27.
• Firm is a Faridabad-based chartered accountancy practice led by proprietor Harshit Bansal.
• No relationship with any director was disclosed.

Independent director

• Mrs. Shashi Khurana re-appointed as Non-Executive Independent Director.
• Second five-year term runs from May 23, 2027 to May 22, 2032.
• Re-appointment is subject to shareholder approval at the ensuing AGM.
• She has over 15 years' experience in operations, business management, and administration.
• She holds no directorships or committee memberships in other companies.

Wholly owned subsidiary

• Board approved subscription to Talbros Nextgen Private Limited equity shares.
• Company incorporated on May 12, 2026 as a wholly owned subsidiary.
• Investment is Rs. 1,00,000 for 10,000 equity shares of Rs. 10 each.
• Subsidiary will operate in automotive and mechanical components manufacturing.

Meeting Details

• Board meeting scheduled for May 22, 2026.
• Location not disclosed in the notice.

Key Agenda Items

• Approve audited standalone financial results for year ended March 31, 2026.
• Consider recommendation of final dividend for year ended March 31, 2026.

Other Notes

• Final dividend, if recommended, is subject to shareholder approval at the AGM.
• Trading window is closed from April 1, 2026 and reopens on May 25, 2026.