Gujarat Craft Industries will hold its 42nd Annual General Meeting on September 23, 2026, at 1:00 pm through video conferencing or other audio-visual means. The meeting aims to transact business as outlined in the notice dated July 29, 2026. Shareholders can access the Annual Report for FY26 and the AGM notice on the company’s website and the Central Depository Services (India) Limited portal.

Key Dates and E-Voting Details

The company has fixed September 16, 2026, as the record date for determining shareholders authorized to receive the final dividend. This date also serves as the cut-off for entitlement to remote e-voting rights. Members holding shares as of this date are eligible to cast their votes.

Remote e-voting will be facilitated by Central Depository Services (India) Limited. Members who have already cast their votes via remote e-voting before the AGM may attend the meeting through VC/OAVM but cannot vote again during the session.

Compliance and Logistics

The notice was dispatched electronically to members with registered email addresses on August 24, 2026. This complies with the Ministry of Corporate Affairs’ General Circular No. 03/2025 dated September 22, 2025, and General Circular No. 20/2020 dated May 5, 2020. The company adheres to Section 108 of the Companies Act, 2013, and Regulation 44 of the SEBI (LODR) Regulations, 2015.

Members without registered bank accounts or email addresses must update their details to receive dividends and login credentials for e-voting. Grievances related to the e-voting system can be addressed to Mr. Rakesh Dalvi, Manager at CDSL.

Gujarat Craft Industries reported a significant decline in profitability for the fiscal year ended March 31, 2026, with net profit falling 64% year-on-year to ₹96.98 lakh. Despite the profit contraction, the company maintained its export momentum, with foreign exchange earnings rising 11.6% to ₹9,637.78 lakh.

The board of directors recommended a final dividend of ₹0.50 per equity share, down from ₹1.00 in the previous year. The 42nd annual general meeting is scheduled for September 23, 2026, where shareholders will also vote on the reappointment of Chairman Rishab Chhajer.

Financial Performance

Revenue from operations declined 9.3% to ₹18,405.68 lakh compared to ₹20,288.62 lakh in FY25. The contraction in top-line growth was driven by a sharper decline in domestic sales, which fell 23.9% to ₹6,118.91 lakh, partially offset by a 11.6% rise in export sales to ₹9,782.30 lakh.

Operating profit remained relatively stable at ₹1,272.68 lakh, indicating resilience in core margins despite lower volumes. However, higher financial costs and depreciation expenses pressured the bottom line. Finance costs increased 16.3% to ₹583.09 lakh, while depreciation rose 22% to ₹559.03 lakh.

What the Numbers Show

A critical divergence exists between the company's operational efficiency and its net profitability. While operating profit declined marginally, net profit collapsed by nearly two-thirds. This suggests that non-operating factors, specifically higher interest outflows and depreciation charges linked to capital expansion, significantly eroded shareholder value in FY26. The debt-equity ratio also widened to 0.99 from 0.82, reflecting increased leverage.

Balance Sheet and Cash Flow

Total borrowings increased to ₹6,344.66 lakh from ₹5,188.41 lakh in the previous year. The company utilized term loans for capital expenditure, including a ₹1,211.07 lakh addition to capital work-in-progress, primarily for solar power projects and plant expansion. Cash and cash equivalents decreased to ₹3.28 lakh from ₹7.79 lakh.

Corporate Governance Updates

The company appointed M/s. Kashyap R. Mehta & Partners as secretarial auditors for five years. Mr. Parth B. Thakkar was appointed as an independent director effective September 1, 2025. The industrial relations environment remained cordial with no strikes or lockouts reported during the year.