K G Denim Limited has scheduled its 34th Annual General Meeting for September 29, 2026, to approve the reappointment of key board members and sanction material related-party transactions. The textile manufacturer reported a standalone net profit of ₹142.66 lakh for FY26, a significant turnaround from a loss of ₹3,587.97 lakh in the previous year.

The meeting agenda includes the reappointment of B Sriramulu as Managing Director and R Selvakumar as Whole-time Director. Additionally, shareholders will vote on omnibus approvals for transactions with Sri Kannapiran Mills Limited and Trigger Apparels Limited.

Financial Performance

The company’s standalone revenue from operations stood at ₹2,000.37 lakh in FY26, down from ₹4,920.66 lakh in FY25. However, total income reached ₹4,062.56 lakh, driven largely by other income which surged to ₹2,062.19 lakh from ₹785.19 lakh in the prior year. This increase was primarily due to a profit of ₹1,469.82 lakh on the sale of fixed assets.

Consolidated revenue from operations was ₹4,203.60 lakh, compared to ₹6,546.79 lakh in FY25. The consolidated net loss narrowed significantly to ₹4.49 lakh from a loss of ₹3,579.15 lakh in the previous fiscal year.

Board Reappointments

The AGM will seek approval for the reappointment of B Sriramulu as Managing Director for three years, effective November 3, 2026. His remuneration will include a salary of ₹5 lakh per month plus perquisites and a 1% commission on net profits. R Selvakumar is set to be reappointed as Whole-time Director for three years, effective August 7, 2026, with a monthly salary of ₹1.42 lakh.

Jaganmohan Ramachandran will also be reappointed as an Independent Director for a second term of three years, starting February 14, 2027. KG Balakrishnan and A Velusamy are retiring by rotation and offering themselves for re-appointment.

Related Party Transactions

Shareholders will approve material related-party transactions with Sri Kannapiran Mills Limited and Trigger Apparels Limited. The proposed limit for transactions with Sri Kannapiran Mills is up to ₹25 crore, while the limit for Trigger Apparels is up to ₹20 crore. These approvals are valid until the next AGM in 2027.

Sri Kannapiran Mills Limited is a promoter company engaged in yarn and fabric manufacturing. Trigger Apparels Limited is a subsidiary involved in trading readymade garments. The company states these transactions are conducted at arm's length and are essential for smooth business operations.

What the Numbers Show

The shift from a substantial net loss to a profit was driven by non-operational factors rather than core business growth. While operational revenue fell by nearly 60%, other income more than doubled, accounting for over half of the total income. This divergence highlights that the profitability turnaround relies heavily on asset sales rather than improved demand for denim fabrics.

K G Denim Limited has reshuffled its top leadership, with founder K G Baalakrishnan stepping down from executive duties to serve as Non-Executive Chairman. The Board of Directors approved the changes during a meeting held on August 4, 2026, alongside the re-appointment of key executives B Sriramulu and R Selvakumar. These moves signal a transition in operational control while retaining strategic oversight from the group’s patriarch.

The Board approved the re-appointment of B Sriramulu as Managing Director and R Selvakumar as Whole-time Director for a further period of three years. Both appointments were recommended by the Nomination and Remuneration Committee and approved by the Audit Committee. The terms are subject to the approval of members at the ensuing Annual General Meeting.

K G Baalakrishnan’s transition marks a shift from day-to-day management to a supervisory role. He expressed his desire to step down from executive responsibilities while continuing to serve as Non-Executive Chairman. His office shall be liable to retire by rotation. Sriramulu is the son of Baalakrishnan, ensuring continuity in family leadership.

Leadership Changes

| Director | Action | Effective Date | Term Details | | :--- | ---: | :--- | | K G Baalakrishnan | Redesignated to Non-Executive Chairman | August 4, 2026 | Liable to retire by rotation | | B Sriramulu | Re-appointed as Managing Director | November 3, 2026 | Three years; subject to AGM approval | | R Selvakumar | Re-appointed as Whole-time Director | August 7, 2026 | Three years; subject to AGM approval |

B Sriramulu brings over 26 years of managerial, technical, and administrative experience in the textile industry. He holds a Master of Science in Textile Technology from the University of Manchester, UK. R Selvakumar, who has served as an Executive, Non-Independent Director since 2023, possesses extensive knowledge in sourcing raw materials, chemicals, and human resources administration.

The company confirmed that none of the directors are debarred from holding office by SEBI or any other statutory authority. The disclosures were made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Rule 15 & 16 of the Companies (Appointment and Qualification of Directors) Rules, 2014. The filing was signed by M Balaji, Chief Financial Officer and Company Secretary & Compliance Officer.