Elgi Rubber Company Limited has completed the sale of a land property in Coimbatore for a total consideration of Rs 43.50 crore. The company executed the sale deed on June 25, 2026, transferring 75 cents and 37 sq.ft of land, along with the building and all fittings and fixtures situated on Trichy Road, to an unrelated third party. This disposal of non-core assets was approved by shareholders through a postal ballot process on May 5, 2023, pursuant to a Board Resolution dated February 12, 2026.

The buyer, Mr. S. Senthilnathan from Salem, is an individual with no affiliation to the promoter or promoter group of the company. The transaction does not qualify as a related party transaction and was conducted at arm's length. The sale is outside the scope of a Scheme of Arrangement, and the company confirmed compliance with the necessary regulations, noting that Regulation 37A of the LODR Regulations was not applicable to the shareholder approval obtained in 2023.

The following table outlines the key details of the transaction:

The disclosure was made to the National Stock Exchange of India Limited in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was signed by Faizur Rehman Allaudeen, Company Secretary of Elgi Rubber Company Limited.

Elgi Rubber Company Limited reported a standalone net loss of ₹11,494.55 lakh for the financial year ended March 31, 2026, significantly widening from a net loss of ₹425.70 lakh in the previous year. The loss was driven by exceptional items, including a full impairment of investment and loans to its subsidiary, Rubber Resources B.V., Netherlands, which filed for liquidation on January 26, 2026. The Board of Directors, at its meeting held on May 28, 2026, approved the reversal of interest receivable amounting to ₹16.43 million from overseas wholly-owned subsidiaries to reduce their interest burden.

The Board approved the reversal of interest on loans and advances recognized during the quarter ended March 31, 2026. The reversal of ₹16.43 million includes ₹2.07 million from Elgi Rubber Company LLC, USA, and ₹14.36 million from Borrachas e Equipamentos Elgi Ltda, Brazil. This decision was based on the recommendation of the Audit Committee to improve the financial position of these subsidiaries. The statutory auditors, M/s. Arun & Co, expressed an unmodified opinion on the audited standalone and consolidated financial results.

The company reported a standalone total income of ₹25,775.91 lakh for FY26, up from ₹23,786.47 lakh in the previous year. Total expenses increased to ₹28,182.31 lakh from ₹24,276.35 lakh in FY25. The aggregate impact of the impairment of investment and loans to Rubber Resources B.V. was disclosed as an exceptional item. Additionally, the company recognized an impairment of receivables from the subsidiary under liquidation amounting to ₹2,527.27 lakh.

On the consolidated front, the company reported a net loss of ₹24,023.78 lakh for FY26, widening from the net loss of ₹436.01 lakh in the previous year. Total consolidated income stood at ₹39,193.71 lakh, while total expenses rose to ₹47,796.93 lakh. The auditors highlighted that three foreign subsidiaries have negative net worth and are dependent on the holding company for financial support, indicating a material uncertainty regarding their ability to continue as going concerns. The group also derecognized Rubber Resources B.V. following the loss of control due to liquidation.

The board approved the re-appointment of M/s. P. Mohan Kumar & Co. as Cost Auditor and M/s. Reddy, Goud & Janardhan as Internal Auditors for the financial year 2026-27. Additionally, the board approved the re-appointment of Sudarsan Varadaraj as Chairman and Managing Director for five years effective January 1, 2027, and Harsha Varadaraj as Executive Director for five years effective November 6, 2026, subject to shareholder approval.