Rexnord Electronics & Controls Ltd executed labour and manpower supply agreements with related parties M/s. S. K. Management Services and M/s. R. K. Management Services on June 27, 2026. The agreements, approved by the Board of Directors, are effective from June 1, 2026, and remain valid up to March 31, 2027, covering Financial Year 2026-27. The transactions are conducted at arm's length.

The agreements mandate a fixed administration or service charge of 3% calculated over the net monthly wage bill, excluding taxes and statutory employer contributions. This charge applies up to an overarching budgetary limit of INR 10 crores. The purpose of the agreements is to source, recruit, verify, and deploy personnel across various operational departments of the principal employer, including production, housekeeping, groundkeeping, pantry washroom maintenance, security, and facility support.

M/s. S. K. Management Services is a proprietary concern represented by its sole proprietor, Ms. Sharda Kishorechand Talwar, a promoter. She is the wife of Mr. Kishorechand Talwar, Chairman and Managing Director, and the mother of Mrs. Nainy Tanna, Whole-Time Director, and Mr. Kundan K. Talwar, Chief Financial Officer. M/s. R. K. Management Services is represented by Ms. Ramandeep Kundan Talwar, the daughter-in-law of Mr. Kishorechand Talwar and wife of Mr. Kundan K. Talwar.

The agreements cover the supply of skilled personnel, semi-skilled personnel, unskilled or general labour, and administrative and supervisory staff. The disclosure was made pursuant to Regulation 30 and 30A of the SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015, and read with SEBI Master Circular no. HO/49/14/14(7)2025-CFD-POD2/1/3762/2026.

Agreement Details

Rexnord Electronics & Controls reported a consolidated net profit of ₹49.19 crore for the financial year ended March 31, 2026, a marginal decline from ₹49.91 crore in the previous year. Revenue from operations for the year rose 12% to ₹1,215.59 crore, compared to ₹1,084.83 crore in FY25. For the quarter ended March 31, 2026, the company recorded a net profit of ₹4.75 crore, a turnaround from the net loss of ₹1.66 crore in the preceding quarter ended December 31, 2025.

Financial Performance

The board approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. Standalone revenue from operations for FY26 increased to ₹1,215.59 crore from ₹1,084.83 crore in the previous year. The company recognized an Industrial Promotion Subsidy of ₹4.03 crore under the Maharashtra Electronics Policy 2016 during the year, which was included in other operating revenue.

Key Metrics

Board Decisions

The Board re-appointed M/s. R.J. Rathi & Co., Chartered Accountants, as the Internal Auditors for the financial year 2026-27. Additionally, the Board approved entering into agreements with related parties, M/s. R. K. Management Services and M/s. S. K. Management Services, pursuant to the Companies Act, 2013 and SEBI (LODR) Regulations, 2015. The meeting commenced at 3.00 P.M. and concluded at 5.00 P.M. on May 29, 2026.

Auditor's Report

The Statutory Auditors, M/s. R. S. Agrawal & Associates, issued an unmodified opinion on the audited financial results. The report confirmed that the results give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable Indian Accounting Standards.