Azad India Mobility has scheduled its 65th Annual General Meeting for September 28, 2026, to approve a proposed 5:1 stock split and seek shareholder consent for related-party transactions. The meeting follows the release of the company's 65th Annual Report for FY26, which highlights significant top-line growth despite margin pressures.

The company plans to subdivide its equity shares from a face value of ₹10 to ₹2 each. This move aims to enhance liquidity and make shares more affordable for small investors. The authorized share capital will increase from 8.3 crore shares to 41.5 crore shares, while the total capital remains unchanged at ₹83 crore.

Key Agenda Items

Shareholders will vote on several special business resolutions during the meeting:

• Stock Split: Subdivision of equity shares from ₹10 to ₹2 face value.
• Remuneration Waiver: Waiver of recovery for excess managerial remuneration paid to Managing Director Bupinder Singh Chadha (₹6.05 lakh) and Executive Director Charnjit Singh Chadha (₹2.63 lakh) in FY26.
• Related-Party Transactions: Approval for transactions with Azad Coach Private Limited up to ₹200 crore annually.

Financial Context

The explanatory statement notes that operational performance was muted in FY26 due to higher inventory costs. This resulted in inadequate profits, triggering the need for waivers under Section 197(10) of the Companies Act, 2013.

Despite revenue growing significantly from ₹1,005.88 lakh in FY25 to ₹6,617.03 lakh in FY26, expenses rose proportionally. Net profit increased to ₹239.30 lakh from ₹7.21 lakh in the prior year.

What the Numbers Show

The financial data reveals a divergence between top-line growth and profitability drivers. While revenue expanded over six-fold year-on-year, net profit remained marginal relative to turnover. The explicit link between "inadequate profits" and the remuneration waiver suggests that statutory limits on managerial pay were breached despite the revenue surge, highlighting margin pressure from inventory costs.

Related-Party Transactions

The company seeks omnibus approval for transactions with Azad Coach Private Limited, a fellow electric bus manufacturer. These transactions include supply of goods, services, and leasing of property. The aggregate value is capped at ₹200 crore per financial year, with individual unforeseen transactions limited to ₹50 crore.

Bupinder Singh Chadha and Charnjit Singh Chadha are interested parties as they are brothers of Amrinder Singh Chadha, a director at Azad Coach Private Limited. The Audit Committee has granted initial approval, citing arm's length terms.

The board of Azad India Mobility approved the re-appointment of M/s R Bhargava & Associates as its statutory auditor on September 2, 2026. The firm is set to hold office for a period of five years, subject to shareholder approval at the ensuing annual general meeting.

The appointment covers the tenure from the conclusion of the upcoming AGM until the conclusion of the AGM to be held for the financial year 2030-2031. The board also approved the notice for the ensuing annual general meeting during the session.

Auditor Profile

R Bhargava & Associates is a Delhi-based firm of chartered accountants with over two decades of experience. The firm specializes in direct and indirect taxation, audit and assurance, company law, FEMA advisory, and business consultancy.

The board meeting commenced at 3:45 pm and concluded at 4:40 pm. The disclosure was made pursuant to Regulation 30(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.