Rishi Techtex has scheduled its 42nd Annual General Meeting for September 24, 2026, to seek shareholder approval for a material related-party transaction valued at ₹95 crore. The company will also consider the reappointment of director Mrs. Aakanksha Mikhail Verma.

The meeting will be conducted through Video Conferencing or Other Audio Visual Means, with remote e-voting available from September 20, 2026, to September 23, 2026. The record date for voting eligibility is set as September 17, 2026.

Material Related-Party Transaction

The primary special business item involves approving transactions with Centennial Fabrics Limited, a related party. The proposed agreement covers the buy and sell of materials, including BOPP Film and LLDPE Liner, for an aggregate value of up to ₹95 crore over 12 months, effective from April 1, 2027.

The relationship exists because Mrs. Smita Patel, part of the promoter group, holds a majority stake in Centennial Fabrics Limited. Additionally, Mr. Jagdish Dokwal, a Key Managerial Personnel at Rishi Techtex, serves as a director at Centennial Fabrics Limited. The Audit Committee approved the transaction on August 19, 2026, noting it is in the ordinary course of business and on an arm's length basis.

Director Reappointment

Shareholders will vote on the reappointment of Mrs. Aakanksha Mikhail Verma as a Non-Executive, Non-Independent Director. She retires by rotation but is eligible for reappointment. Mrs. Verma holds a Bachelor's Degree in Fashion Marketing and Promotion and brings approximately 13 years of experience in client management and business development. She is the sister of Mr. Abhishek Harshad Patel, the Managing Director.

What the Numbers Show

The proposed ₹95 crore transaction represents 64.64% of the company's annual turnover for the immediately preceding financial year (FY26). This high percentage indicates a significant dependency on Centennial Fabrics Limited for critical packaging materials used in cement industry bags, underscoring the strategic importance of maintaining this supply chain relationship.

Rishi Techtex posted revenue of ₹14,695.28 lakh for FY26, a 17% increase from the previous year. Net profit rose 9% to ₹249.55 lakh, supported by strong domestic volume growth in its woven packaging and agrotech segments.

The technical textiles manufacturer navigated geopolitical disruptions and raw material volatility while expanding its asset base. The company announced no dividend for the year, opting instead to strengthen cash flows.

Financial Performance

Revenue from operations expanded significantly, driven by the woven division which recorded an approximate increase of 1,000 tons in bag sales. Operating profit (EBITDA) grew 12% to ₹994.58 lakh, though the operating margin contracted slightly to 6.77% from 7.07% in FY25 due to sharp input cost inflation.

Profit before tax (PBT) advanced 20% to ₹406.38 lakh. The net profit margin improved marginally to 2.77% from 2.69%.

Segment Highlights

The Woven Packaging Solutions division emerged as the primary growth engine. The company commissioned a second automated lamination plant, boosting monthly capacity from approximately 55 lakh to 65-67 lakh bags. This expansion allowed higher output without a proportional increase in manpower.

In the Knitted Solutions segment, sales of premium metallized reflective nets nearly doubled, rising from 15 tons in FY25 to 28 tons in FY26. Over 70% of shade net revenues originated from the domestic market, providing resilience against subdued export demand in the Middle East.

What the Numbers Show

Rising receivables signal working capital pressure amidst growth. Trade receivables surged 26% to ₹2,738.37 lakh, outpacing the 17% revenue growth. Consequently, the debtors turnover ratio slowed to 18.63 from 17.30 in the prior year, indicating longer collection cycles despite disciplined inventory management.

Balance Sheet and Governance

Total assets expanded 24% to ₹9,307.57 lakh, reflecting investments in fixed assets and right-of-use assets under Ind AS 116. The debt-equity ratio increased to 1.15 from 0.91, driven by new term loans and lease liabilities.

The 42nd Annual General Meeting will be held on September 24, 2026, via video conferencing. Shareholders will vote on the reappointment of Mrs. Aakanksha Mikhail Verma and approve a related-party transaction with Centennial Fabrics Limited valued at up to ₹95 crore for FY27-28.