Kakatiya Textiles Limited adopted its audited financial statements for the fiscal year ended March 31, 2026, during its 44th Annual General Meeting held on September 29, 2026. The meeting, conducted via video conference, also saw the re-appointment of Chairperson and Director Vanka Ravali, who retired by rotation.

The proceedings were attended by 53 members, including promoters and the promoter group. Four directors were present: Vanka Ravali (Chairperson & Director), V Rajakaumari (Director), Kosuru Sai Charan Kumar (Independent Director), and Kalidindi Padmavathi (Independent Director). Key managerial personnel, including Manager Bandlamudi Sunil Babu and Chief Financial Officer Atmakuri Rama Guravaiah, also participated in the session.

Meeting Proceedings and Voting

The meeting commenced at 3:00 pm and concluded at 3:15 pm. As per Section 108 of the Companies Act, 2013, and Regulation 44 of the SEBI (LODR) Regulations, 2015, e-voting facilities were arranged for all businesses transacted. Remote e-voting opened on September 26, 2026, at 9:00 am and closed on September 28, 2026, at 5:00 pm. Practicing Company Secretary M B Suneel served as the scrutinizer to ensure a fair voting process.

Since resolutions were already put to vote through remote e-voting, no proposing or seconding of resolutions took place during the live session. The e-voting window remained open for members present who had not cast their votes earlier for 15 minutes after the meeting's conclusion.

Resolutions Passed

The shareholders considered two ordinary business items:

1. Adoption of the audited financial statements for FY26 along with the Board of Directors' report and auditor's report.
2. Appointment of Vanka Ravali (DIN: 05336333) in place of herself, as she retires by rotation and is eligible for re-appointment.

Both resolutions were passed effective September 29, 2026. The meeting concluded with a vote of thanks from the Chairperson.

Voting Results Breakdown

Detailed voting results disclosed under Regulation 44 of SEBI (LODR) Regulations, 2015, show strong shareholder support for both agenda items. For the adoption of financial statements, 778,013 votes were cast in favour against just 3 votes against, resulting in a 99.99% approval rate among polled votes. Promoters and promoter group cast 733,203 votes entirely in favour.

For the re-appointment of Vanka Ravali, the support was slightly lower but still overwhelming. A total of 775,013 votes were cast in favour, while 3,003 votes were cast against, leading to a 99.61% approval rate. Notably, public non-institutional shareholders recorded 3,003 votes against this resolution, accounting for all dissenting votes in this item.

What the Numbers Show

The voting data reveals a divergence in shareholder sentiment between the two resolutions. While the adoption of financial statements saw near-unanimous support with only 3 dissenting votes, the re-appointment of Chairperson Vanka Ravali faced 3,003 votes against. This indicates that while shareholders are satisfied with the company's reported financial performance for FY26, there is a minor segment of public non-institutional investors expressing reservation regarding the leadership continuity, despite the resolution passing comfortably.

Kakatiya Textiles reported a net loss of ₹502.23 lakh for the financial year ended March 31, 2026, a sharp reversal from the net profit of ₹133.52 lakh recorded in FY25. The company’s revenue from operations declined 6.7% year-on-year to ₹3,144.84 lakh, driven by lower other operating revenue despite stable product sales.

Financial Performance

The company’s operating performance deteriorated significantly, with profit before interest, depreciation, and tax (PBDIT) turning negative at (₹420.50 lakh) compared to a positive ₹188.06 lakh in the previous year. This decline was primarily attributed to a surge in operating expenses. Other expenses more than doubled to ₹1,196.94 lakh from ₹532.33 lakh in FY25, largely driven by higher power and fuel costs (₹578.88 lakh vs ₹262.21 lakh) and increased repairs and maintenance charges (₹316.59 lakh vs ₹135.55 lakh).

Despite the operational loss, the company recognized ₹153.42 lakh in exceptional items, comprising a ₹103.00 lakh waiver on power surcharges and interest, and a ₹50.00 lakh gain from the sale of old machinery. Without these non-recurring gains, the net loss would have been wider.

Balance Sheet Signals

The company’s balance sheet reflects a significant increase in leverage. Non-current borrowings surged 102.7% to ₹4,122.50 lakh from ₹2,033.50 lakh in FY25. This rise was driven by an increase in unsecured inter-corporate loans to related parties, which grew to ₹3,410.20 lakh from ₹1,321.20 lakh. Consequently, the company’s net worth deteriorated to (₹1,785.54 lakh) from (₹1,286.42 lakh), indicating deepening accumulated losses.

Cash flow from operating activities turned negative at (₹2,299.49 lakh), compared to a positive ₹766.65 lakh in the prior year. This outflow was primarily due to a sharp decline in other current liabilities (₹1,478.88 lakh decrease) and increased inventory holdings (₹335.97 lakh increase). To bridge this gap, the company raised ₹2,089.00 lakh through borrowings during the year.

What the Numbers Show

A critical divergence exists between the company’s revenue generation and its cost structure. While revenue declined modestly by 6.7%, operating expenses nearly doubled, with power and fuel costs alone increasing by over 120%. This suggests significant pressure on operational efficiency or underutilization of capacity, as fixed energy costs rose disproportionately to output. Additionally, the reliance on related-party debt has doubled, raising questions about capital structure sustainability given the negative equity position.

Corporate Actions

The Board did not recommend any dividend for FY26. The company’s 44th Annual General Meeting is scheduled for September 29, 2026, where shareholders will consider the re-appointment of Chairperson Ravali Vanka, who retires by rotation. Statutory auditors Brahmayya & Co. have issued an unmodified opinion on the financial statements.