Mehul Colours Limited has issued the notice for its 31st Annual General Meeting (AGM), scheduled for September 30, 2026, at 12:30 pm via video conference or other audio-visual means. The meeting will transact ordinary and special business, including the adoption of financial statements for FY26 and key board appointments.

The e-voting window for shareholders remains open from September 26 to September 29, 2026. Shareholders holding shares as of the cut-off date of September 23, 2026, are eligible to vote.

AGM Agenda and Resolutions

The AGM notice outlines three primary items for shareholder consideration:

1. Adoption of Financial Statements: Shareholders will receive, consider, and adopt the audited financial statements for the financial year ended March 31, 2026, along with the reports of the Board of Directors and Auditors.
2. Re-appointment of Director: Mrs. Bhakti Mehul Joshi (DIN: 02376755) retires by rotation and seeks re-appointment as a director liable to retire by rotation.
3. Appointment of Additional Director: Mr. Tejas Harish Joshi (DIN: 11917872) is proposed for appointment as an Executive Director, subject to shareholder approval.

E-Voting Details

The company issued the intimation pursuant to Section 108 of the Companies Act, 2013 and Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. National Securities Depository Limited (NSDL) will provide the e-voting services.

Members who have voted through remote e-voting are eligible to attend the AGM but cannot vote again during the meeting. Corporate members must submit a certified copy of the board resolution authorizing their representative to vote.

Board Appointments

Tejas Harish Joshi

Mr. Tejas Harish Joshi was appointed as an additional executive director on September 5, 2026, effective from that date. His appointment requires shareholder approval at the ensuing general meeting, following a recommendation from the Nomination and Remuneration Committee.

Mr. Joshi brings over 15 years of experience with Mehul Colours Limited. He holds an SSC qualification and possesses extensive hands-on knowledge of manufacturing and business operations. His profile highlights a deep understanding of factory operations, production processes, workforce management, quality requirements, customer needs, and day-to-day business administration. He is not related to any existing directors on the board.

Bhakti Mehul Joshi

Mrs. Bhakti Mehul Joshi, the wife of Chairman and Managing Director Mehul Pravinchandra Joshi, retires by rotation at this AGM. She has been serving on the board since April 1, 2009, and is primarily responsible for overseeing finance operations. She holds a Bachelor of Commerce degree and a Post Graduate Diploma in Travel and Tourism. As of the notice date, she holds 6,86,800 equity shares (6.51%).

Regulatory Compliance

The company confirmed that Mr. Joshi is not debarred from holding office under any SEBI order or other authority, aligning with BSE Circular no. LIST/COMP/14/2018-19 dated June 20, 2018. The disclosure complies with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Mr. Roshan Harde has been appointed as the scrutinizer for the remote e-voting process.

Mehul Colours reported a 33.22% rise in revenue from operations to ₹3,040.32 lakh for the financial year ended March 31, 2026 (FY26), compared to ₹2,282.20 lakh in the previous year. However, net profit after tax declined 5.1% to ₹522.29 lakh, down from ₹550.30 lakh in FY25, as input cost pressures weighed on margins.

The company’s total income grew to ₹3,181.16 lakh from ₹2,371.29 lakh, driven by higher operational revenue and increased other income of ₹140.84 lakh. Despite the top-line growth, profit before tax fell to ₹703.48 lakh from ₹740.37 lakh, reflecting the impact of volatile petrochemical and pigment feedstock costs on operating margins.

Financial Performance

Revenue from operations expanded significantly, with domestic sales reaching ₹2,615.62 lakh and export sales surging to ₹424.70 lakh, up from ₹155.79 lakh in the prior year. Total income included other income of ₹140.84 lakh, which rose from ₹89.09 lakh, contributing to the overall revenue growth.

What the Numbers Show

The divergence between strong revenue growth and declining profitability highlights margin compression during the period. EBITDA margin contracted sharply to 19.81% from 30.17% in the previous year, while net profit margin fell to 17.18% from 24.11%. This indicates that rising raw material costs were not fully passed on to customers, eroding operational efficiency despite higher sales volumes.

Balance Sheet and Liquidity

The company’s liquidity position strengthened considerably following its initial public offer (IPO). Cash and bank balances surged to ₹1,433.05 lakh from ₹129.30 lakh, boosting the current ratio to 9.92 times from 6.03 times. The IPO raised ₹21.66 crore, increasing the net worth to ₹4,126.79 lakh from ₹1,706.06 lakh.

Trade receivables turnover slowed slightly to 4.50 times from 4.95 times, suggesting a minor extension in credit cycles. Meanwhile, inventory turnover improved to 7.92 times from 5.22 times, indicating better stock management relative to the higher cost of goods sold.

Corporate Actions and Governance

Mehul Colours listed its equity shares on the SME platform of BSE Limited in August 2025, issuing 30,08,000 shares at ₹72 each. The Board has not recommended any dividend for FY26, opting to conserve resources for future growth. The company also appointed Mr. Tejas Harish Joshi as an Additional Director, effective September 5, 2026, subject to shareholder approval at the upcoming Annual General Meeting scheduled for September 30, 2026.