Loyal Textile Mills passed all six resolutions proposed at its 80th Annual General Meeting held on September 22, 2026. The meeting, conducted via video conferencing, saw unanimous approval for financial statements, director re-appointments, and auditor remuneration.

The resolutions included the adoption of standalone and consolidated financial statements for FY26, the re-appointment of Mrs. Vishala Ramswami as a director liable to retire by rotation, and the ratification of cost auditor remuneration. Additionally, shareholders approved the re-appointment of Mr. Muthu Elumalai Manivannan as Whole Time Director for a five-year term, the re-appointment of Mr. K. Kumaran as an Independent Director, and the appointment of Mr. Subrahmaniya Sivam Ramamurthy as an Independent Director for his first five-year term.

Voting participation and results

A total of 31 members cast their votes through remote e-voting, representing 34,29,979 shares. The scrutinizer’s report confirmed that all ordinary and special resolutions were passed with the requisite majority. Notably, only 5 votes were cast against any of the six agenda items, resulting in a near-unanimous approval rate of 99.99985% in favor across all resolutions.

What the numbers show

The voting data reveals a significant concentration of shareholder power within the promoter group. Out of the total 48,16,446 outstanding shares, promoters and the promoter group held 35,39,845 shares. They voted 33,43,828 shares, accounting for 94.46% of the total votes polled. In contrast, public non-institutional shareholders, who held 12,72,601 shares, voted only 86,151 shares, representing just 6.77% of the total votes polled. Public institutions holding 4,000 shares did not cast any votes.

This disparity indicates that the outcome of the AGM was effectively determined by promoter voting, with minimal engagement from the public float. The five dissenting votes originated entirely from the public non-institutional category, representing a negligible fraction of their total holding.

Loyal Textile Mills has scheduled its 80th Annual General Meeting (AGM) for Tuesday, September 22, 2026. The meeting will be held via Video Conferencing to adopt the audited standalone and consolidated financial statements for the fiscal year ended March 31, 2026.

The company reported a significant decline in revenue from operations to ₹421.96 crore in FY26, down from ₹627.78 crore in the previous year. This contraction was driven by a deliberate restructuring programme aimed at exiting low-margin and non-viable product lines.

Despite the top-line drop, the EBITDA loss narrowed substantially to ₹4.35 crore from a loss of ₹34.05 crore in FY25. However, the company reported a net loss of ₹66.21 crore for the year, compared to a net loss of ₹54.68 crore in FY25. The result was impacted by restructuring costs, inventory revaluation, and under-utilisation of capacity during the business realignment phase.

Strategic Restructuring

Management completed the major phase of its restructuring programme initiated in FY25. Production volumes fell across key segments: yarn production dropped to 39.20 lakh kg from 103.47 lakh kg, while woven fabric output declined to 103.22 lakh metres from 218.86 lakh metres. Export revenue stood at ₹270 crore, down from ₹384 crore, affected by geopolitical developments and supply-chain disruptions in the Middle East.

What the Numbers Show

The divergence between the narrowing EBITDA loss and the widening net loss highlights the heavy impact of non-operating and exceptional items. While operational efficiency improved as evidenced by the ₹29.70 crore reduction in EBITDA loss, the bottom line suffered due to higher interest costs relative to reduced operating profits and specific restructuring charges. Interest expenses remained high at ₹32.77 crore, although lower than the ₹50.96 crore paid in the previous year.

Corporate Governance Changes

The AGM agenda includes several key governance resolutions:

• Re-appointment of Mrs. Vishala Ramswami as a Non-Executive Director retiring by rotation.
• Ratification of remuneration for Cost Auditor Mr. B. Venkateswar at ₹1 lakh plus taxes for FY27.
• Re-appointment of Mr. M. E. Manivannan as Whole Time Director for a five-year term effective February 11, 2027.
• Appointment of Dr. R Subrahmaniya Sivam as an Independent Director for a five-year term.

No dividend has been proposed for FY26 due to the losses incurred during the consolidation of operations.