Rajapalayam Mills shareholders approved a final dividend of Re.0.50 per share for FY26 during the company's 90th Annual General Meeting held on August 28, 2026. The meeting also saw the approval of four material related-party transactions and the re-appointment of key directors.

The resolutions were passed with overwhelming support from promoters and public shareholders via remote e-voting. The total equity shares eligible for voting stood at 9,220,200, with 68.76% of outstanding shares participating in the poll for non-related party resolutions.

Key Resolutions Passed

The board proposed nine resolutions, all of which received the requisite majority. The primary outcomes included:

• Adoption of audited financial statements for the year ended March 31, 2026.
• Declaration of a dividend of Re.0.50 per equity share.
• Re-appointment of A.V. Dharmakrishnan as a director retiring by rotation.
• Re-appointment of S.S. Ramachandra Raja as a Non-Executive Director.
• Ratification of remuneration for cost auditor N. Sivashankaran & Co. for FY27.

Related-Party Transactions

Shareholders approved material related-party transactions with four entities. These resolutions required promoter abstention, resulting in lower overall participation rates compared to other agenda items.

What the Numbers Show

Promoter group participation was absolute for standard governance resolutions, with 100% of their 5,188,405 shares voted in favour. However, for the related-party transaction approvals, promoter shares were excluded from voting, reducing the total polled votes to approximately 9.64% of the outstanding capital. Despite this lower base, public non-institutional shareholders provided near-unanimous support, voting in favour at rates exceeding 99.97% across all related-party deals.

The scrutiniser’s report, issued by R. Palaniappan of N.A. Jayaraman & Co., confirmed compliance with Section 108 of the Companies Act, 2013, and SEBI LODR regulations. No invalid votes were recorded for any resolution.

Rajapalayam Mills reported a consolidated net profit of ₹175.5 crore for the first quarter of FY27, marking a sharp recovery from the ₹81.2 crore loss posted in the corresponding period of the previous fiscal year. The company’s financial performance improved across key metrics, driven by robust top-line growth and significant contributions from its associates. Standalone operations also turned profitable, with net profit rising to ₹11.2 crore from a loss of ₹122.4 million in Q1FY26.

Revenue from operations stood at ₹2,612.8 crore, up from ₹1,885.7 crore in Q1 of the prior year. This represents a year-on-year increase of approximately 38.6%. The growth in revenue was accompanied by an improvement in operating leverage at the standalone level, with EBITDA rising to ₹37.8 crore from ₹22.9 crore.

Financial Performance

The quarter saw a notable expansion in profitability margins. Standalone EBITDA margin increased to 14.4% compared to 12% in the same quarter last year. This widening margin suggests better cost management or improved pricing power relative to the previous period. The consolidated result was significantly boosted by the share of profit from associates, which contributed ₹164.4 crore to the bottom line.

What the Numbers Show

The divergence between standalone operational profitability and consolidated earnings highlights the critical role of associate companies in Rajapalayam Mills’ financial structure. While standalone EBITDA surged by roughly 65% to reach ₹37.8 crore, the consolidated net profit of ₹175.5 crore was largely driven by a ₹164.4 crore share of profit from associates such as Ramco Cements, Ramco Industries, and Ramco Systems. This indicates that while core textile operations have normalized to profitability, the overall group performance remains heavily dependent on the investment portfolio. Additionally, exceptional items reduced pre-tax profits by ₹10.1 crore due to losses on the sale of property, plant, and equipment, underscoring that the turnaround is primarily operational rather than asset-driven.