Century Enka Limited shareholders approved key governance changes and leadership continuity decisions at its 60th Annual General Meeting held on August 20, 2026. The meeting, which commenced at 2:30 pm and concluded at 4:05 pm, authorized the appointment of a new statutory auditor and endorsed the re-appointment of senior management and board members through remote e-voting and electronic voting.

The most significant resolution was the appointment of M/s. Singhi & Co., Chartered Accountants (Firm Registration No. 302049E) as the statutory auditor for a first term of five consecutive years. This appointment follows the completion of the second term of the previous auditors, M/s. KKC & Associates LLP (formerly M/s. Khimji Kunverji & Co. LLP). The new tenure extends from the conclusion of the current AGM until the conclusion of the 65th Annual General Meeting.

Governance and leadership changes

Mrs. Rajashree Birla was re-appointed as a Non-Executive Director after retiring by rotation in accordance with the Companies Act, 2013. She offered herself for re-appointment and was eligible for the position. Shareholders confirmed she is not debarred from holding office by any SEBI order or other authority.

Shareholders also approved the re-appointment of Mr. Suresh Sodani as Managing Director and Chief Executive Officer for a further period of two years. His term commences on April 1, 2027 and concludes on March 31, 2029. He is not liable to retire by rotation. Like Mrs. Birla, he is not debarred from holding office by virtue of any regulatory order.

The key resolutions passed at the 60th AGM are summarised below:

Other resolutions

The meeting also covered the ratification of remuneration for cost auditors for the fiscal year ended March 31, 2027. The proceedings were conducted pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Century Enka Limited delivered a record first quarter of fiscal year 2027 (Q1FY27), reporting operating revenue of ₹554 crore, a 38% year-on-year increase, and profit after tax (PAT) of ₹62 crore, up 301% YoY. The strong performance was driven by healthy volume growth across all business verticals, supported by productivity improvements and higher operating rates. EBITDA rose sharply to ₹86 crore, reflecting a 331% YoY growth, while EBITDA margin expanded significantly to 15.46%, an improvement of 1,050 basis points year-on-year. The results underscore the company’s ability to pass on raw material cost increases through calibrated pricing actions, despite volatile crude oil prices.

The disclosure is made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015. Century Enka had previously notified the National Stock Exchange of India Limited and BSE Limited regarding the scheduled date for the investor interaction held on July 29, 2026. The earnings call transcript and audio recording are now available on the company’s website.

Financial Performance Highlights

Managing Director Suresh Sodani and Chief Financial Officer Yogesh Shah highlighted that the robust financial results were underpinned by a 12% YoY growth in total sales volumes to 19,199 metric tonnes. Tyre cord fabric sales surged by 69% to ₹306 crore, while filament yarn sales grew by 20% to ₹230 crore. GST cuts on tyres and automobiles contributed to robust demand from original equipment manufacturers (OEMs) across two-wheelers, three-wheelers, and heavy commercial vehicles.

Operational Drivers and Margin Dynamics

Profitability benefited from one-time inventory gains arising from low-cost opening stock, quantified at ₹46.24 crore as per quarterly results submissions. Additionally, higher availability of renewable power helped partially offset increases in petrol-based energy costs. Renewable power accounted for over 40% of overall power consumption in the quarter. Management noted that margins are expected to normalize as higher-cost inventory gets consumed and raw material prices stabilize.

Suresh Sodani emphasized that normalized EBITDA margins typically range between 7% and 10%, with current levels exceeding this range due to temporary factors such as inventory gains and sharp raw material price fluctuations post-geopolitical events. The company continues to focus on enhancing its valuated product portfolio to counter cheap commodity imports from China, where anti-dumping duties have not yet been notified despite favorable findings by the Directorate General of Trade Remedies (DGTR).

What the Numbers Show

The significant divergence between the 12% volume growth and the 38% revenue growth indicates substantial realization improvements, driven by both pricing actions and a shift toward higher-margin valuated products. While the 15.46% EBITDA margin is exceptional, management’s guidance of 7–10% normalized margins suggests investors should view the current profitability as partly cyclical, influenced by one-time inventory benefits and temporary cost offsets from renewable energy. The strategic push into value-added products aims to structurally improve margins and reduce dependency on commodity pricing volatility.

Future Outlook and Capex Plans

Looking ahead, commercial sales from the new Polyamide Textured Yarn (PTCF) plant are expected to commence in the second half of FY27, following ongoing approval processes. The company plans to spend over ₹100 crore on capital expenditure (CAPEX) in FY27, focusing on capacity addition in mother yarn (commissioning in FY28), value-added products in nylon filament yarn (NFY), and renewable energy investments. A new group captive renewable power scheme at Bharuch, adding 10.5 MW capacity, is expected to commission in H2 FY27, potentially increasing renewable power share to around 50%. This investment, with an equity contribution of ₹8.5 crore, aims to reduce long-term power costs and enhance operational efficiency.