Lakshmi Mills Company Limited held its 116th Annual General Meeting on September 25, 2026, via Video Conferencing and Other Audio Visual Means, with 74.59% of total outstanding shares polled across all four resolutions.

The AGM was convened at 12:05 pm, with Chairman and Managing Director S. Pathy presiding from the registered office in Coimbatore. He provided an overview of the economic landscape, the textile industry, and the company's performance. Deputy Managing Director Aditya Krishna Pathy detailed operational aspects including raw materials, personnel, power, finance, and corporate social responsibility initiatives. The meeting concluded at 1:05 pm.

Meeting attendance and governance

The AGM was conducted in compliance with Ministry of Corporate Affairs and SEBI circulars regarding virtual meetings. The requisite quorum was present, allowing proceedings to commence formally. The following key personnel participated:

Statutory Auditor T.S.V. Rajagopal, Secretarial Auditor M.D. Selvaraj, and Scrutiniser B. Krishnamoorthi also joined via video conference. Ashwin Chandran requested leave of absence and did not attend.

Voting process and e-voting window

The Company Secretary informed members that remote e-voting was available from September 22, 2026 (9:00 am) to September 24, 2026 (5:00 pm), facilitated through National Securities Depository Limited (NSDL) as the service provider. Members present virtually who had not cast votes earlier were provided a 15-minute e-voting window during the meeting. The e-voting results were unblocked on September 25, 2026 at around 1:57 pm in the presence of two witnesses. Aditya Krishna Pathy declared the final results at the registered office on September 28, 2026, based on the Scrutiniser's report. The number of shareholders as on the cut-off date of September 18, 2026 was 5,585.

Resolution-wise voting results

All four ordinary resolutions were passed with requisite majority under the Companies Act, 2013. The voting outcome was identical across all resolutions, as summarised below:

Category-wise participation

The detailed breakdown of votes polled by shareholder category was consistent across all four resolutions. The promoter and promoter group held 458,650 shares and polled 458,643 votes (99.9985% of their holding), all in favour. Public institutions held 22,150 shares and polled zero votes. Public non-institutions held 214,750 shares and polled 60,142 votes (28.0056% of their holding), with 60,135 in favour and 7 against.

The Lakshmi Mills Company Ltd reported a net loss of ₹1,554.94 lakh for FY26, widening significantly from the ₹467.53 lakh loss recorded in the previous year. The deterioration was primarily driven by a sharp increase in tax expenses rather than core operational performance.

While the company managed to turn its operations profitable before tax, recording a profit of ₹753.75 lakh against a loss of ₹740.45 lakh in FY25, this gain was entirely erased by non-operational tax adjustments. Revenue from operations fell 8.1% year-on-year to ₹24,183.48 lakh, reflecting headwinds in the textile segment.

Financial Performance

The company’s revenue decline was concentrated in its textile business, where sales dropped to ₹20,906.18 lakh from ₹23,181.39 lakh in the prior year. Export revenues specifically contracted by nearly 19%, falling to ₹2,738.14 lakh. Conversely, the rental services segment provided stability, with income rising to ₹2,480.28 lakh from ₹2,176.53 lakh, supported by new tenants and event-based revenue sharing.

What the Numbers Show

The divergence between operational profitability and the final bottom line highlights a significant one-time tax impact. Although the company generated an operating profit, the transition to the concessional tax regime under Section 115BAA triggered a material write-off of Minimum Alternate Tax (MAT) credit entitlement amounting to ₹918.03 lakh. This write-off, combined with deferred tax adjustments, resulted in a total tax expense of ₹2,285.16 lakh, which exceeded the pre-tax profit by more than three times. Consequently, the reported net loss does not reflect the underlying operational improvement achieved during the year.

Balance Sheet and Dividend

The company strengthened its balance sheet by reducing total borrowings to ₹8,129.28 lakh from ₹13,350.57 lakh in the previous year. This deleveraging effort improved the debt-to-equity ratio to 0.11 from 0.15. Despite the reported net loss, the Board recommended a dividend of ₹10 per share (10%), subject to shareholder approval at the upcoming Annual General Meeting on September 25, 2026.