Bhandari Hosiery Exports Limited has convened its 33rd Annual General Meeting (AGM) for Tuesday, September 15, 2026, at its registered office in Ludhiana. The meeting will address the adoption of financial statements for FY26, the declaration of a final dividend, and significant changes to board remuneration.

The Board of Directors has recommended a final dividend of ₹0.01 per equity share of face value ₹1 each for the financial year ended March 31, 2026. This payout is subject to shareholder approval at the AGM. Eligible shareholders are those whose names appear in the Register of Members as of the cut-off date, Tuesday, September 8, 2026. The company will close its register of members and share transfer books from September 9 to September 15, 2026, inclusive.

Special Business Agenda

The AGM notice includes two special resolutions concerning the leadership team:

1. Re-appointment of CMD: Shareholders will vote on the re-appointment of Mr. Nitin Bhandari as Chairman & Managing Director for a five-year term commencing November 22, 2026. His current term expires on November 21, 2026.
2. Remuneration Increase: The Board seeks approval to increase Mr. Bhandari’s basic monthly salary from ₹8,00,000 to ₹12,00,000, effective April 1, 2026. This represents a 50% increase in his base pay. The resolution also allows for additional perquisites and benefits as per company policy, subject to the limits prescribed under Schedule V of the Companies Act, 2013.

Additionally, the ordinary business includes the re-appointment of Mr. Vikas Nayar as a Non-Executive Director, who retires by rotation at this meeting.

E-Voting Details

The company has engaged Central Depository Services (India) Limited (CDSL) to facilitate remote e-voting. The voting window opens on Saturday, September 12, 2026, at 9:00 am and closes on Monday, September 14, 2026, at 5:00 pm. Members holding shares as of the record date can cast their votes electronically or via ballot paper at the physical meeting venue.

Bhandari Hosiery Exports reported a marginal improvement in profitability for the fiscal year ended March 31, 2026, with net profit rising 0.71% to ₹7.77 crore from ₹7.71 crore in the previous year. Revenue from operations remained largely flat, increasing just 0.68% to ₹2,807.14 crore. The stable bottom line was supported by a strategic capital raise that reduced the company's interest burden.

Financial Performance

The company's gross profit before interest, depreciation, and tax (PBITDA) stood at ₹28.03 crore, a slight decline from ₹28.42 crore in FY25. However, financial expenses decreased by ₹71.79 lakh to ₹10.64 crore, driven by debt reduction through equity infusion. This reduction in interest costs helped offset the minor dip in operating margins, resulting in a higher profit before tax of ₹10.44 crore compared to ₹10.19 crore in the prior year.

Capital Structure and Dividend

During the year, Bhandari Hosiery issued 92.9 million equity shares via a rights issue at a premium of ₹2.56 per share, raising ₹23.78 crore. This infusion strengthened the balance sheet, increasing total equity to ₹1,833.43 crore from ₹1,531.46 crore. The debt-to-equity ratio improved to 0.55 from 0.63.

The board recommended a final dividend of ₹0.01 per share (1%), a reduction from the 2% payout in FY25. The company also announced plans to re-appoint Nitin Bhandari as Chairman and Managing Director for five years, with his monthly remuneration increasing from ₹8 lakh to ₹12 lakh, subject to shareholder approval.

What the Numbers Show

The divergence between flat revenue and improved net profit highlights the impact of capital structure optimization. While operational margins contracted slightly due to industry-wide challenges such as fluctuating cotton prices and high energy costs, the reduction in financial expenses—largely attributable to the rights issue—shielded the bottom line. This indicates that near-term profitability gains are being driven by balance sheet management rather than top-line growth.

Operational Highlights

Exports declined 3.99% to ₹8.15 crore, reflecting global economic uncertainties and reduced demand from downstream apparel companies. Despite these headwinds, the company maintained its focus on sustainable practices, holding certifications including GOTS, BSCI, and Sedex. The firm also invested in solar panels to reduce electricity costs and enhance operational reliability.

The 33rd Annual General Meeting is scheduled for September 15, 2026, where shareholders will vote on the adoption of accounts, dividend declaration, and the re-appointment of key directors.