Forbes Precision Tools & Machine Parts has issued a postal ballot notice seeking shareholder approval for the re-appointment of M.C. Tahilyani as Managing Director. The resolution also proposes payment of commission to non-executive directors.

The voting period for the special resolutions commences on September 4, 2026, at 9:00 am and concludes on October 3, 2026, at 5:00 pm. Shareholders holding shares as of the cut-off date of August 28, 2026, are eligible to cast their votes through remote e-voting facilitated by National Securities Depository Limited (NSDL).

Leadership Continuity

The Board recommends the re-appointment of Mr. Tahilyani for a further term of three years, effective from April 1, 2027, to March 31, 2030. He currently serves as the Managing Director and Key Managerial Personnel of the company.

Mr. Tahilyani holds a Bachelor of Commerce degree and is a Chartered Accountant, Associate Company Secretary, and Chartered Management Accountant. He brings over 40 years of experience in finance, strategy, and general management. During FY26, his remuneration was ₹508 lakh. He holds 7,531 equity shares in the company, representing 0.02% of the paid-up capital.

Proposed Remuneration Structure

The proposed remuneration framework for the new tenure includes:

The Board retains the authority to review and revise remuneration within this approved framework based on recommendations from the Nomination and Remuneration Committee.

Non-Executive Director Commission

Shareholders will also decide on paying commission to five non-executive directors: Marzin R. Shroff, D. Sivanandhan, Jai L. Mavani, Rani A. Jadhav, and Nikhil Bhatia. The proposal allows for an aggregate commission not exceeding 1% of net profits per annum.

For the relevant financial year, the board proposes a commission of ₹25 lakh to each non-executive director, totaling ₹1.25 crore. In the event of no profits or inadequate profits, the company may pay up to ₹1.25 crore in aggregate as minimum remuneration under Schedule V of the Companies Act, 2013.

Voting Process

In compliance with Ministry of Corporate Affairs circulars, the notice is being sent electronically only. Physical copies are not being dispatched. Members must ensure their PAN and bank details are updated with their depository participants to facilitate smooth voting. The scrutinizer appointed for the process is Harshvardhan Tarkas, a practicing company secretary.

Forbes Precision Tools & Machine Parts reported a net profit after tax (PAT) of ₹9.03 crore for the quarter ended June 30, 2026, marking a 137% year-on-year increase from ₹3.81 crore in Q1FY26. Revenue from operations rose to ₹67.55 crore from ₹52.41 crore during the same period last year, reflecting robust demand in its precision cutting tools segment. The Board also declared an interim dividend of ₹5 per equity share, signaling confidence in the company’s cash generation capabilities.

The Board of Directors approved the unaudited financial results at its meeting held on August 12, 2026, pursuant to Regulations 30 and 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 Sharp & Tannan Associates, the statutory auditors of the company. Additionally, the Board re-appointed Mr. Mahesh Tahilyani as Managing Director effective April 1, 2027, for a term of three years.

Financial Performance Highlights

The company’s total income stood at ₹68.34 crore, up from ₹53.28 crore in Q1FY26. Operating expenses increased to ₹56.44 crore from ₹48.20 crore, primarily due to higher cost of materials consumed and employee benefits expense. Despite the rise in costs, the profit before tax jumped to ₹11.90 crore from ₹5.08 crore, aided by improved operational efficiency.

Tax expense for the quarter was ₹2.87 crore, compared to ₹1.27 crore in Q1FY26. Basic and diluted earnings per share (EPS) stood at ₹1.75, up from ₹0.74 in the corresponding period last year.

Dividend and Corporate Actions

Shareholders will benefit from an interim dividend of ₹5 per equity share of face value ₹10 each, representing a 50% payout ratio. The record date to determine eligibility for the dividend is fixed as Tuesday, August 18, 2026, in accordance with Regulation 42 of the SEBI Listing Regulations, 2015. This declaration follows the company’s strong cash flow performance in the first quarter.

What the Numbers Show

The significant divergence between revenue growth (28.9%) and expense growth (17.1%) indicates operating leverage, allowing margins to expand substantially. While cost of materials consumed rose by 31.8%, the company managed to control other expenses, leading to a nearly doubled profit before tax. This operational efficiency, combined with stable other income, underscores the resilience of its core business model in the precision tools sector.