Nelcast Limited shareholders approved the company’s financial statements for the fiscal year ended March 31, 2026, and authorized a dividend declaration during its 44th Annual General Meeting (AGM) held on July 27, 2026. The meeting, conducted via Video Conferencing (VC) / Other Audio Visual Means (OAVM), also resulted in key board changes, including the reappointment of two directors and the ratification of cost auditor remuneration for the upcoming fiscal year.

The AGM commenced at 3.30 PM with the Chairman confirming the requisite quorum was present. The proceedings were conducted in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015, and the Companies Act, 2013. National Securities Depository Limited (NSDL) facilitated remote e-voting and e-voting during the meeting, with Mr. P.R. Lakshmi Narayanan, a Practicing Company Secretary, appointed as the Scrutinizer. The Statutory Auditors’ and Secretarial Auditor’s reports contained no qualifications or adverse remarks.

Key Resolutions Passed

Shareholders voted on six resolutions covering financial approvals, director appointments, and auditor remuneration. The specific outcomes are detailed below:

Board Composition Changes

The most significant governance update involves the rotation of directors. Mr. A. Balasubramanian (DIN: 00490921), who retired by rotation, offered himself for re-appointment and was successfully reappointed via a special resolution. Similarly, Mr. R. Sridharan (DIN: 00868787) was reappointed as a Non-Executive Independent Director for a second term of five consecutive years.

Conversely, Mr. D. Sesha Reddy (DIN: 00520448), another director liable to retire by rotation, informed members that he does not seek re-appointment. This marks a reduction in the number of retiring directors seeking to continue their tenure this cycle.

Procedural Compliance

The Chairman addressed queries from registered speakers, with Mr. P. Deepak, Managing Director, providing clarifications. Following the conclusion of the meeting at 4.13 PM, the e-voting facility remained open for an additional 15 minutes for members who had not voted remotely. The consolidated voting results and the Scrutinizer’s report were submitted to BSE Limited and the National Stock Exchange of India Limited within the prescribed timeframe. Company Secretary S.K. Sivakumar declared the results based on the Scrutinizer’s Report.

Nelcast Limited reported a net profit of ₹5.14 crore for the quarter ended June 30, 2026, marking a 59% decline from ₹12.50 crore in Q1FY25. The company’s revenue from operations grew marginally by 3% to ₹341.05 crore, up from ₹331.86 crore in the corresponding period last year. However, the bottom line was pressured by rising input costs and operational expenses, leading to a significant contraction in profitability.

The Board of Directors approved the unaudited standalone and consolidated financial results on July 27, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, K Nagaraju & Associates. The subsidiary, NC Energy Limited, has not commenced commercial operations, meaning consolidated figures mirror standalone results.

Financial Performance Highlights

Revenue from operations stood at ₹341.05 crore, compared to ₹331.86 crore in Q1FY25. Other income contributed ₹4.34 crore, rising from ₹4.14 crore previously. Total income reached ₹345.39 crore. Despite top-line stability, total expenses surged to ₹338.70 crore from ₹319.40 crore in the prior year quarter, primarily due to higher material consumption and other operational costs.

What the Numbers Show

The divergence between revenue growth and expense inflation highlights margin pressure. While revenue increased by only 3%, the cost of materials consumed rose by 9% to ₹154.05 crore, and other expenses jumped 9% to ₹107.66 crore. This disproportionate rise in key expense categories eroded the profit before tax, which fell 60% to ₹66.89 crore. The effective tax rate remained relatively stable, with current tax at ₹10.79 crore and deferred tax at ₹4.74 crore. The sharp decline in earnings per share, from ₹1.44 to ₹0.59, underscores the impact of these cost headwinds on shareholder value in the quarter.