bhatia colour chem reported a robust financial performance for FY26, with revenue from operations surging 23.66% to ₹1,546.20 crore (₹15,462.075 lakhs) compared to ₹1,250.33 crore (₹12,503.263 lakhs) in the previous fiscal year. The Surat-based manufacturer of textile chemicals, dyes, and auxiliaries also saw its net profit after tax (PAT) grow by 14.06% to ₹41.78 crore (₹417.762 lakhs), up from ₹36.63 crore (₹366.27 lakhs) in FY25. This growth underscores the company’s expanding market share in the domestic textile processing sector.

The Board of Directors decided against declaring a dividend for the year, citing the need to conserve resources for future expansion and capacity enhancement. The company’s total income stood at ₹1,549.97 crore (₹15,499.700 lakhs), including other income of ₹37.63 lakh (₹37.625 lakhs). Profit before tax was recorded at ₹64.37 crore (₹643.681 lakhs), reflecting effective cost management despite inflationary pressures in raw material prices.

Financial Highlights

Operational & Strategic Developments

The company strengthened its balance sheet significantly during the year. The debt-to-equity ratio improved sharply to 0.02 from 0.26 in FY25, driven by the full repayment of unsecured loans and non-utilization of cash credit facilities. Additionally, Bhatia Colour Chem converted 1,905,597 warrants into equity shares at ₹100.50 per warrant, raising ₹19.06 crore (₹190.56 lakhs) and increasing paid-up capital to ₹14.14 crore (₹14,13.93 lakhs).

Management highlighted increased sales and better research and development as key drivers of this performance. The company continues to focus on value-added printing products, including foil binders and zari binders, catering to evolving requirements in the packaging and textile industries.

Governance and Related Party Transactions

Shareholders will vote on several key governance matters at the Annual General Meeting scheduled for August 25, 2026. These include the reappointment of Managing Director Bharat Brijlal Bhatia and Whole-Time Directors Rameshchand Chanduram Bhatia and Ravi Ashokkumar Bhatia for five-year terms commencing January 21, 2027. The Board also seeks approval for material related party transactions with promoters and M/s Vapchem, an aggregate value not exceeding ₹2,21.04 crore, ₹21.04 crore, ₹40.30 crore, and ₹220 crore respectively, covering purchases, sales, borrowings, and remuneration.

Statutory auditors M/s DSI & Co., Chartered Accountants, have issued an unqualified report on the standalone financial statements. However, the secretarial audit noted minor compliance lapses, including delayed filing of shareholding patterns and technical issues with software backups, which management has since addressed.

Bhatia Colour Chem Limited will hold its 5th Annual General Meeting on August 25, 2026, to seek shareholder approval for material related-party transactions (RPTs) totaling ₹502.38 crore and the reappointment of its top management. The resolutions, which require special or ordinary approvals depending on the item, aim to secure operational flexibility through arm’s-length agreements with promoters and a partnership firm. The meeting will be held at the company’s registered office in Surat.

The Board of Directors seeks omnibus approval for RPTs with Managing Director Bharat Brijlal Bhatia, Whole Time Directors Rameshchand Chanduram Bhatia and Ravi Ashokkumar Bhatia, and M/s Vapchem, a partnership firm. These transactions, governed by Section 188 of the Companies Act, 2013 and Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, cover purchases, sales, borrowings, and leasing. The proposed limits represent significant portions of the company’s annual consolidated turnover from FY26.

Related-Party Transaction Details

The aggregate value of the proposed RPTs is ₹502.38 crore, valid from the conclusion of the 5th AGM until the 6th AGM. The breakdown of the proposed transaction limits is as follows:

Transactions with M/s Vapchem, where Bharat Brijlal Bhatia is a partner, are primarily for the purchase and sale of goods. Borrowings under these arrangements are unsecured, repayable on demand, and carry an interest rate of 8.5% per annum. The company states these transactions are in the ordinary course of business and on an arm’s-length basis.

Management Reappointments

Shareholders will vote on the reappointment of three key executives for five-year terms commencing January 21, 2027, to January 20, 2032:

• Bharat Brijlal Bhatia: Reappointed as Managing Director with a remuneration of ₹7,00,000 per month.
• Rameshchand Chanduram Bhatia: Reappointed as Whole Time Director with a remuneration of ₹7,00,000 per month.
• Ravi Ashokkumar Bhatia: Reappointed as Whole Time Director with an increased remuneration of ₹2,50,000 per month, up from ₹2,00,000.

Additionally, the meeting will ratify the remuneration of ₹30,000 plus applicable taxes for M/s V.M. Patel & Associates as Cost Auditors for FY27. The remote e-voting period opens on August 22, 2026, and closes on August 24, 2026, with voting rights determined as of the record date, August 18, 2026.