Kernex opens e-voting on borrowing powers and remuneration
Kernex Microsystems (India) Ltd has opened a postal ballot process seeking shareholder approval to increase borrowing powers and managerial remuneration. The company reported a net profit of ₹8,062.52 lakh for FY26, up from ₹5,091.71 lakh in the previous year, with gross revenue rising to ₹42,857.52 lakh. Resolutions also cover the appointment of a new director and a related party transaction. E-voting runs from June 30 to July 29, 2026, with results expected by July 31.
*this image is generated using AI for illustrative purposes only.
Kernex Microsystems (India) Ltd has initiated a postal ballot process seeking shareholder approval to increase its borrowing powers and raise managerial remuneration for key executives. The company reported a net profit of ₹8,062.52 lakh for the financial year 2025-26, a significant increase from ₹5,091.71 lakh in the previous year, alongside a gross revenue surge to ₹42,857.52 lakh. The resolutions also include the appointment of a new director and the approval of a related party transaction.
Key Resolutions
The ballot includes seven special and ordinary resolutions. Shareholders will vote on increasing the borrowing powers of the Board of Directors and creating charges on the company's assets. Additionally, the notice proposes increasing the managerial remuneration for three Whole-Time Directors and the Managing Director. An ordinary resolution seeks approval for a related party transaction concerning the remuneration of a General Manager.
Financial Performance
The company’s financial performance for the past three years indicates strong growth. The table below summarizes the key financial figures:
| Financial Year | Gross Revenue (₹ in Lakhs) | Profit/(Loss) Before Tax (₹ in Lakhs) | Net Profit/(Loss) (₹ in Lakhs) |
|---|---|---|---|
| 2025-26 | 42,857.52 | 10,942.47 | 8,062.52 |
| 2024-25 | 19,183.13 | 3,337.43 | 5,091.71 |
| 2023-24 | 2,131.49 | (2,049.21) | (2,040.53) |
Remuneration and Appointments
The resolutions propose increasing the remuneration for Mr. M B Narayana Raju, Mr. M Sitarama Raju, and Ms. Sreelakshmi Manthena. Ms. Sreelakshmi Manthena, who holds 3.82% of the equity share capital, serves as the Managing Director. The notice also seeks approval for the appointment of Mrs. Parvathi Manthena as a Director. Furthermore, a related party transaction involves revising the remuneration of Mr. Alluri Sitarama Raju Manthena, General Manager (Operations), to a range of ₹3,50,000 to ₹5,00,000 per month effective from September 1, 2025.
Voting Timeline
The remote e-voting period commences on June 30, 2026, at 09:00 a.m. and concludes on July 29, 2026, at 05:00 p.m. The cut-off date for determining voting rights is June 26, 2026. Results of the voting will be declared on or before July 31, 2026.
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE202H01019/40614d4b-4744-4e5a-bdef-f5de412986c1.pdf
Historical Stock Returns for Kernex Microsystems
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.60% | +3.30% | +5.47% | +89.01% | +108.38% | +2,968.01% |
How does the company plan to utilize the increased borrowing powers to sustain the recent triple-digit revenue growth?
What specific strategic initiatives are driving the projected expansion for FY 2025-26 following the turnaround from losses in FY 2023-24?
Will the approval of the related party transaction for the General Manager's remuneration set a precedent for future executive compensation structures?
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