Laxmi Organic Industries Limited filed its Business Responsibility & Sustainability Report for the financial year ended March 31, 2026, with the stock exchanges. The report details the company's performance on environmental, social, and governance parameters, highlighting its governance structure and materiality assessment for the reporting period.

Governance and Oversight

The Risk Management and ESG Governance Committee of the Board serves as the highest authority responsible for the implementation and oversight of the Business Responsibility policy. The committee members include Dr. Rajiv Banavali (Chairperson), Mr. Vijay Ratnaparkhe, Dr. Rajan Venkatesh, and Mr. Harshvardhan Goenka. The company has established a cross-functional Steering Committee to drive the execution of ESG strategies and provide progress reports to the Board committee.

Materiality and Principles

The company identified 16 material topics through a double materiality assessment, including hazardous materials management, air quality, and climate risks. Policies covering all nine principles of the National Guidelines on Responsible Business Conduct (NGRBC) have been approved by the Board. The company reported no instances of non-compliance with statutory requirements during the financial year.

Employee and Workforce Data

Laxmi Organic Industries reported a total workforce of 1,913 individuals, comprising 1,098 employees and 815 workers. Women accounted for 14.30% of the total employees and 5.52% of the total workers. The company provided health and accident insurance to 100% of permanent employees and workers.

Workforce Composition

Environmental Performance

The company reported total Scope 1 emissions of 3,09,442 MT of CO2 and Scope 2 emissions of 52,298 MT of CO2 for FY26. Water withdrawal totaled 13,31,830 kiloliters, entirely sourced from third parties. The company achieved Zero Liquid Discharge (ZLD) at its manufacturing units, which account for 99% of turnover, by adopting Low Temperature Evaporation and Mechanical Vapour Recompression technology.

Stakeholder Grievances

During FY26, the company received 16 complaints from shareholders, 3 from employees and workers, and 12 from customers. One customer complaint remained pending resolution at the end of the year. The company reported zero cases of sexual harassment pending resolution and zero fines or penalties for non-compliance.

Laxmi Organic Industries Limited has scheduled its 37th Annual General Meeting for August 5, 2026, via video conferencing. The meeting will consider the audited financial statements for the financial year ended March 31, 2026, which show a decline in profitability due to pricing pressure and raw material volatility. The Board has recommended a final dividend of 15%, or ₹0.30 per equity share, subject to shareholder approval.

Financial Performance Overview

The company reported a standalone net profit of ₹792.58 Million for FY2025-26, a decrease from ₹1,180.21 Million in the previous year. Revenue from operations stood at ₹28,085.32 Million, down from ₹29,446.06 Million in FY2024-25. Consolidated net profit was ₹793.62 Million on revenue of ₹28,466.67 Million. The company attributed the performance to continued pricing pressure, raw material volatility, and geopolitical uncertainties, although spreads began to recover toward the latter part of the year.

Key Financial Ratios and Capital

The Debt-to-Equity Ratio increased to 0.27 from 0.13, attributed to higher borrowings including a ₹5,000 Million term loan from HDFC Bank for capacity expansion. The Interest Coverage Ratio declined to 4.20 from 9.47. The paid-up share capital increased marginally to ₹554.30 Million from ₹554.05 Million following the issuance of 1,24,060 equity shares under ESOP-2020.

Dividend and AGM Details

The record date for the dividend is fixed as Tuesday, July 21, 2026, with payment scheduled on or after August 10, 2026. The special business at the AGM includes the ratification of Cost Auditor remuneration of ₹0.27 Million for FY2026-27 and approval for payment of remuneration to Executive Directors in the event of absence or inadequacy of profits for FY2025-26, FY2026-27, and FY2027-28.