Chennai Ferrous Industries Limited shareholders approved all three resolutions at the 16th Annual General Meeting held on September 25, 2026, with over 99% of votes cast in favour.

The meeting, conducted via Video Conferencing from 2:30 pm to 3:13 pm, saw participation from 33 shareholders. The resolutions covered the adoption of FY26 financial statements, the re-appointment of Chairman and Managing Director R. Natarajan, and an enhancement of the company's borrowing powers.

Voting results breakdown

The scrutinizer’s report confirms that all ordinary and special business items were passed unanimously by the promoters and with overwhelming support from public shareholders. The detailed voting pattern is as follows:

Promoter and promoter group shares voted 100% in favour of all three resolutions. Public non-institutional shareholders supported the financial adoption and director re-appointment with 99.9932% of votes in favour. The special resolution regarding borrowing powers received slightly lower but still substantial support from the public category, with 99.9578% voting in favour.

Governance and shareholder engagement

Two speaker shareholders attended the virtual meeting to express views and pose questions. The Chairman provided responses to their queries and noted their suggestions for future consideration. The Notice convening the meeting and the Unmodified Auditor's Report were taken as read, having been circulated prior to the event.

The e-voting period remained open from September 22, 2026, to September 24, 2026, through National Securities Depository Limited (NSDL) services. M K Madhavan & Associates served as the scrutinizer for the process.

Chennai Ferrous reported a 40% decline in revenue from operations to ₹13,231.06 lakh for FY26, driven by lower trading volumes. Net profit fell 16% to ₹338.22 lakh, supported by significant deferred tax benefits.

The company’s 16th Annual General Meeting is scheduled for September 25, 2026, at 2:30 pm via Video Conferencing (VC)/Other Audio-Visual Means (OAVM). Shareholders will vote on enhancing the board’s borrowing powers to ₹200 crore. Remote e-voting commences on September 22, 2026, at 9:00 am and concludes on September 24, 2026, at 5:00 pm.

Financial Performance

Revenue from operations dropped sharply from ₹22,242.73 lakh in FY25 to ₹13,231.06 lakh in FY26. This contraction was primarily due to a decrease in traded items revenue, which fell from ₹21,765.24 lakh to ₹12,979.13 lakh. Other income also declined by nearly half, dropping from ₹214.51 lakh to ₹113.48 lakh, largely due to the absence of profits on share sales recorded in the previous year.

Despite the top-line pressure, the bottom line showed relative resilience. Profit after tax stood at ₹338.22 lakh compared to ₹401.07 lakh in the prior year. This stability was aided by a deferred tax credit of ₹204.45 lakh, which offset current tax expenses of ₹52.76 lakh. In contrast, the previous year saw no deferred tax benefit.

What the Numbers Show

The divergence between operating performance and net profit highlights the impact of tax accounting. While EBITDA contracted by 66.6% to ₹188.08 lakh, net profit declined by only 15.7%. This discrepancy is directly attributable to the ₹204.45 lakh deferred tax credit recognized in FY26, which significantly boosted the final profit figure despite weak operational earnings. Without this non-cash accounting benefit, the profit decline would have mirrored the severe drop in operating margins.

Balance Sheet & Liquidity

The company strengthened its liquidity position during the year. Cash and cash equivalents surged to ₹307.90 lakh from ₹49.57 lakh in the previous year. Total assets decreased to ₹6,941.00 lakh from ₹8,062.08 lakh, reflecting the drawdown of inventories, which stood at nil as of March 31, 2026, compared to ₹1,625.21 lakh in FY25.

Borrowings were fully repaid, with short-term borrowings dropping to zero from ₹166.83 lakh. However, trade payables remained significant at ₹275.33 lakh, down from ₹2,039.09 lakh, indicating improved supplier settlement cycles or reduced procurement activity.

Corporate Actions & E-Voting Details

Shareholders will consider a special resolution to enhance the board’s borrowing powers under Section 180(1)(c) of the Companies Act, 2013. The proposed limit allows the company to borrow up to ₹200 crore, exceeding the aggregate of paid-up share capital and free reserves. Chairman and Managing Director R. Natarajan retires by rotation and offers himself for reappointment.

Voting rights are determined based on equity shares held as on the cut-off date of September 18, 2026. The remote e-voting facility is provided by National Securities Depository Limited (NSDL). Shareholders who have cast votes through remote e-voting prior to the AGM may attend the meeting via VC/OAVM but are not entitled to vote again. No dividend was recommended for FY26. The book closure period runs from September 19, 2026, to September 25, 2026.

Annual Report Access

Pursuant to Regulation 30 and 36(1)(b) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, the company has dispatched letters providing a web-link for accessing the 16th Annual Report for FY26 to shareholders who have not registered their email addresses with the company or depository participants. The notice of the AGM and the Annual Report are being sent electronically to shareholders with registered email addresses as on August 28, 2026.