Nahar Spinning Mills has scheduled its 46th Annual General Meeting for September 25, 2026. The textile manufacturer will seek shareholder approval for a ₹1.00 per share dividend and a strategic entry into the solar energy sector.

The company reported a net profit of ₹2,181.93 lakh for FY26, up from ₹1,235.25 lakh in the previous year. Gross revenue declined slightly to ₹3,23,311.25 lakh from ₹3,31,890.66 lakh.

What the Numbers Show

While top-line growth contracted, profitability expanded significantly. The divergence between the 2.6% decline in gross revenue and the 76.7% surge in net profit indicates improved cost efficiency or margin expansion during FY26.

Key Agenda Items

Shareholders will vote on several ordinary and special resolutions:

• Dividend Payout: Approval of a final dividend of ₹1.00 per equity share of ₹5 face value for FY26.
• Management Reappointments: Reappointment of Dinesh Oswal as Managing Director for five years (January 1, 2027 to December 31, 2031). His remuneration includes a salary scale of ₹95,00,000 to ₹1,15,00,000 per month plus 2% commission on net profit.
• Director Continuation: Continuation of Satish Kumar Sharma as Non-Executive Director beyond age 75. Reappointment of Independent Directors Dr. Yash Paul Sachdeva and Dr. Anchal Kumar Jain for second terms.
• Chairman Fee Increase: Increase in fee for Chairman Jawahar Lal Oswal from 0.50% to 0.60% of export sales, effective April 1, 2026.

Strategic Expansion into Solar Energy

A significant special resolution seeks to alter the Main Object Clause of the Memorandum of Association. The amendment aims to enable the company to engage in solar energy generation, trading, and consultancy. This marks a diversification move beyond its core textile manufacturing business.

Meeting Details

The AGM will be conducted via Video Conferencing/Other Audio Visual Means (OAVM). The register of members will remain closed from September 5, 2026, to September 9, 2026. Remote e-voting will be open from September 22, 2026, to September 24, 2026.

Nahar Spinning Mills reported a sharp recovery in profitability for the quarter ended June 30, 2026, with net profit from continuing operations surging 338% year-on-year to ₹69.88 lakh. The Ludhiana-based textile manufacturer saw revenue from operations rise 18% to ₹966.10 lakh, driven by stronger operational performance and significant margin expansion compared to the same period in the previous year. This marks a notable improvement from the ₹15.96 lakh net profit recorded in Q1FY26, signaling a robust turnaround in the company's financial health.

The Board of Directors approved the standalone un-audited financial results during a meeting held on August 5, 2026. The results were reviewed by M/s. Gupta Vigg & Co., Chartered Accountants, Ludhiana, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In addition to the financial results, the Board approved the re-appointment of Dinesh Oswal as Managing Director for five years effective January 1, 2027, subject to shareholder approval. The Board also approved the re-appointment of Dr. Yash Paul Sachdeva and Dr. Anchal Kumar Jain as Independent Directors for a second term of five years effective August 24, 2027.

Financial Performance

Revenue from operations grew to ₹966.10 lakh in Q1FY27, up from ₹819.28 lakh in the corresponding quarter of the previous year. Other income also saw a substantial increase, rising to ₹9.42 lakh from ₹3.68 lakh. Total income from operations stood at ₹975.52 lakh, compared to ₹822.96 lakh in Q1FY26. The following table summarises the key financial metrics for the quarter:

Total expenses increased by 10% to ₹882.13 lakh, primarily due to higher cost of materials consumed and power & fuel costs. Cost of materials consumed rose to ₹549.27 lakh from ₹548.26 lakh, while power and fuel expenses increased to ₹79.20 lakh from ₹73.62 lakh. Despite the rise in expenses, the company managed to improve its bottom line significantly.

EBITDA and Margin Expansion

Latest data reveals a significant improvement in operating profitability, with EBITDA more than doubling year-on-year. The EBITDA margin expanded sharply, reflecting improved operational efficiency and better cost management during the quarter. The table below highlights the EBITDA performance:

What the Numbers Show

The most striking aspect of the quarterly performance is the divergence between expense growth and profit growth. While total expenses rose by only 10%, net profit more than quadrupled. The profit before tax jumped from ₹21.28 lakh to ₹93.39 lakh, suggesting that the company successfully passed on input cost increases or benefited from a favorable product mix. The tax expense was ₹23.50 lakh, reflecting the higher taxable income.

Corporate Actions

The company announced that its 46th Annual General Meeting will be held on September 25, 2026, at 10:00 am through Video Conferencing/Other Audio Visual Means. The Register of Members and Share Transfer Books will remain closed from September 5, 2026, to September 9, 2026. The record date for dividend payment on Equity Shares for the financial year ended March 31, 2026, has been fixed as September 4, 2026. Shareholders holding shares on this date will be eligible for the dividend.