EL Forge Limited has initiated a postal ballot process to seek shareholder approval for the reappointment of Mrs. Shubha Ganesh and the appointment of Mr. M.S. Sivakaminathan as non-executive independent directors. The remote e-voting window is scheduled to open on August 28, 2026, and close on September 27, 2026.

Board Composition Changes

The company’s Board of Directors proposes these appointments to maintain statutory compliance with the Companies Act, 2013, and SEBI Listing Regulations regarding the composition of independent directors.

Mrs. Ganesh, a Chartered Accountant with over three decades of professional experience across various industries, was initially appointed as an additional director in July 2021. Her first term expired on July 29, 2026. The Board seeks her reappointment for a second consecutive term of five years, commencing September 29, 2026, and ending on September 28, 2031.

Mr. Sivakaminathan, a management professional from IIM Ahmedabad with more than four decades of experience in auto components, pharmaceuticals, and agriculture-based industries, was appointed as an additional director on August 5, 2026. The resolution seeks his formal appointment as an independent director for a five-year term ending August 4, 2031.

Director Profiles and Interests

Both candidates have provided declarations confirming their eligibility and independence under Section 149(6) of the Act and SEBI regulations. The Board has recommended these resolutions to members as special resolutions.

No other directors have expressed interest in these resolutions.

Voting Process Details

The postal ballot notice, dated August 12, 2026, was circulated electronically to members whose names appeared in the Register of Members or Beneficial Owners as of the cut-off date, August 21, 2026. National Securities Depository Limited (NSDL) has been engaged to provide the remote e-voting facility.

Members holding shares in physical or demat form as on the cut-off date are eligible to vote. The voting rights are proportional to the paid-up equity share capital held. Once cast, votes cannot be modified. Mrs. B. Venkatalakshmi, a practicing company secretary, has been appointed as the scrutinizer for the ballot.

The results of the postal ballot will be declared on or before September 28, 2026, at 5:00 pm. The outcome will be submitted to BSE Limited and displayed on the company’s website and NSDL’s e-voting portal.

El Forge reported a standalone net profit of ₹117.08 lakh for the quarter ended June 30, 2026, marking a substantial year-on-year improvement from ₹39.28 lakh in the same period of FY25. The Chennai-based manufacturer of steel forgings saw revenue from operations rise to ₹2,182.63 lakh, up from ₹2,060.67 lakh in the prior year quarter. This performance underscores operational stability and improved profitability margins as the company navigates the initial quarter of FY27.

The Board of Directors, meeting on August 12, 2026, approved the unaudited financial results pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the company’s independent auditors, D. Venkatesan, in accordance with Standard on Review Engagements (SRE) 2410. The Board also resolved to seek shareholder approval via postal ballot for the reappointment of Mrs. Shubha Ganesh as an Independent Director and the approval of Mr. M.S. Sivakaminathan, who was appointed as an additional director in the capacity of an independent director.

Financial Performance Overview

The company’s total income stood at ₹2,191.60 lakh, compared to ₹2,074.90 lakh in the same quarter last year. Operating expenses remained controlled, with total expenses recorded at ₹2,074.52 lakh against ₹2,035.62 lakh in the prior period. Employee benefits expense decreased slightly to ₹321.08 lakh from ₹322.39 lakh, while finance costs declined to ₹11.89 lakh from ₹14.06 lakh. Depreciation and amortization expense increased to ₹49.35 lakh from ₹46.23 lakh.

Balance Sheet Position

As of June 30, 2026, El Forge’s total assets increased to ₹4,422.81 lakh from ₹4,078.49 lakh at the end of March 2026. Current assets rose significantly to ₹2,119.20 lakh, driven by higher trade receivables of ₹805.13 lakh and cash and cash equivalents of ₹580.01 lakh. Non-current assets stood at ₹2,303.62 lakh. On the liabilities side, total equity grew to ₹2,838.37 lakh, while total current liabilities increased to ₹1,115.46 lakh, primarily due to higher trade payables.

Corporate Governance Updates

In addition to financial approvals, the Board reappointed VRKSPJ & Co., a firm of Chartered Accountants with over 35 years of experience, as Internal Auditors for three financial years, from FY27 to FY29. The firm specializes in assurance services, taxation, and business advisory. The company noted that no deferred tax asset has been recognized in the books of accounts due to carried forward business losses and unabsorbed depreciation, maintaining a conservative accounting stance. There were no shareholder complaints received or disposed of during the quarter.

What the Numbers Show

The most notable aspect of El Forge’s Q1FY27 performance is the sharp recovery in profitability, with net profit nearly tripling year-on-year despite only modest revenue growth. While revenue increased by approximately 5.9%, net profit surged by nearly 198%. This divergence suggests effective cost management and improved operational efficiency rather than volume-driven growth. The reduction in finance costs and stable employee benefits expense contributed to this margin expansion. However, investors should monitor the rise in trade receivables, which jumped to ₹805.13 lakh from ₹663.99 lakh in the previous quarter, potentially indicating slower collection cycles or higher credit sales.