Polyplex Corporation Limited has confirmed full compliance with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, for the financial year ended March 31, 2026. The company submitted its Annual Secretarial Compliance Report to the stock exchanges on May 29, 2026, following a review conducted by RSM & Co., Practicing Company Secretaries.

The report verifies that the listed entity adhered to all applicable statutory provisions and corporate practices during the review period. RSM & Co. examined the company's books, records, filings with BSE Limited and National Stock Exchange of India Limited, and its website to certify compliance status.

Compliance Status and Observations

The auditors reported no deviations or non-compliances with the provisions of the SEBI Act, 1992, the Securities Contracts (Regulation) Act, 1956, or the specific regulations listed in the report. The status of key compliance requirements is detailed below:

Remedial Actions on Previous Observations

The report highlighted that the company addressed an observation from the previous year regarding related party transactions. In the prior period, post facto approval was taken for a transaction between two subsidiaries instead of prior approval. The specific deviation involved a transaction value that reached 11.03% of the step-down subsidiary's turnover, exceeding the 10% threshold that would have exempted it from Audit Committee approval.

To rectify this, the Audit Committee of the parent company granted post facto approval as a special case. RSM & Co. noted that since the Audit Committee has approved the transaction, no further action is required by the company.

Scope and Limitations

RSM & Co. clarified that the responsibility for compliance with applicable laws rests with the management of Polyplex Corporation Limited. The report is based on an examination of relevant documents and information provided and is neither an audit nor an expression of opinion on the financial records. It is intended solely for the purpose of compliance under Regulation 24A(2) of the SEBI LODR Regulations.

Polyplex Corporation Limited reported a consolidated net profit of Rs 4,093 lakh for the financial year ended March 31, 2026, a significant decline from Rs 35,772 lakh in the previous year. Total income for the year stood at Rs 7,17,343 lakh, compared to Rs 6,98,056 lakh in FY25. The Board of Directors approved the audited standalone and consolidated financial statements at its meeting held on May 23, 2026. The joint statutory auditors, S R Batliboi & Co. LLP and S S Kothari Mehta & Co. LLP, issued an unmodified opinion on the results. The company released an investor presentation on May 27, 2026, detailing the audited financial results for the quarter and year ended March 31, 2026.

Standalone Financial Performance

On a standalone basis, the company reported a net profit of Rs 5,921 lakh for FY26, compared to Rs 7,709 lakh in the previous year. Revenue from operations for the year stood at Rs 149,720 lakh, a decrease from Rs 156,277 lakh in FY25. For the quarter ended March 31, 2026, the standalone net profit was Rs 2,869 lakh, with revenue from operations at Rs 40,149 lakh.

Consolidated Financial Performance

For the quarter ended March 31, 2026, the consolidated performance showed improvement on a year-on-year basis across key metrics. Net profit rose to Rs 2,480 lakh from Rs 1,011 lakh, while revenue grew to Rs 1,87,072 lakh from Rs 1,73,956 lakh. The Q4 consolidated EBITDA improved to Rs 8,820 lakh from Rs 6,390 lakh in the same period of the previous year, with the EBITDA margin expanding to 4.71% from 3.70% year-on-year.

The financial results include the impact of foreign currency fluctuations and mark-to-market losses on derivative instruments. Other expenses for the quarter included a mark-to-market loss on derivative financial instruments measured at FVTPL of Rs 1,704 lakh.

Key Developments

During the year, Polyplex (Thailand) Public Company Limited, a subsidiary, received a notice of arbitration from a minority shareholder regarding the purchase of shares. The management believes there is no obligation under the Shareholding Agreement and is contesting the claims. Additionally, the board approved the dissolution of subsidiary PAR LLC, which was completed on March 27, 2026. The company also executed a share purchase agreement on March 25, 2026, for the acquisition of 51% of the equity share capital of TechNova Printrite Products Private Limited, with the subscription amounting to approximately Rs 6,209.75 lakh on April 30, 2026.

The company's total equity as per the audited standalone balance sheet stood at Rs 75,381 lakh as of March 31, 2026, compared to Rs 71,336 lakh in the previous year.