Rubfila International board approved the re-classification of Mrs. Bharati Bharat Dattani from the "Promoter and Promoter Group" to the "Public" category on September 11, 2026. The move follows her request under Regulation 31A of the SEBI LODR Regulations.

Mrs. Dattani holds 6,95,091 equity shares, representing approximately 1.28% of the company’s paid-up equity capital. The Board noted that she does not exercise control over the company’s affairs, has no special rights, and is not represented on the Board of Directors.

Regulatory Compliance and Declarations

The Board considered declarations confirming that Mrs. Dattani:

• Does not act as Key Managerial Personnel.
• Does not participate in day-to-day management.
• Is not a wilful defaulter or fugitive economic offender.
• Is not acting in concert with any person to exercise control.

Next Steps in the Process

The re-classification is subject to fulfilling all conditions under Regulation 31A. The Board authorized the following actions:

• Apply to BSE Limited and National Stock Exchange of India Limited for no-objection/approval.
• Place the request before shareholders for approval after receiving exchange clearance.
• Authorize the Managing Director and Company Secretary to handle necessary filings with regulators and depositories.

The Board meeting commenced at 3:00 pm and concluded at 3:15 pm.

Rubfila International has scheduled its 33rd Annual General Meeting for September 29, 2026, to seek shareholder approval for the divestment of its wholly owned subsidiary, Premier Tissues India Limited. The company also intends to declare a final dividend of ₹2 per share.

The proposed transaction involves selling the entire 100% stake in Premier Tissues to Finquest Personal Care Pvt Ltd, a related party promoted by the company's Non-Executive Chairman, Hardik B Patel. The deal is valued at ₹61 crore, equivalent to ₹54.26 per equity share.

Strategic Divestment Details

The Board approved the transaction on August 20, 2026, noting that the offered consideration exceeds the valuations provided by two independent registered valuers. Ernst & Young Merchant Banking Services LLP valued the shares at ₹49.50 each, while Navigant Corporate Advisors Ltd placed the value at ₹47.93 each.

The carrying value of the investment in Premier Tissues as of June 30, 2026, was ₹32 crore. The divestment is expected to generate an estimated pre-tax gain of ₹29 crore and a net impact on profit of ₹24.85 crore after applicable taxes.

Financial Performance FY26

For the financial year ended March 31, 2026, Rubfila reported standalone revenue from operations of ₹51,171.86 lakh, an increase of approximately 9.24% from ₹46,840.78 lakh in the previous year. Standalone profit after tax rose to ₹2,630.13 lakh from ₹2,464.52 lakh.

On a consolidated basis, revenue grew to ₹60,249.96 lakh from ₹55,041.28 lakh. However, consolidated profit after tax declined to ₹2,661.19 lakh from ₹2,943.85 lakh in FY25. The decline in consolidated profit is attributed to lower profitability in the tissue paper segment, where segment results fell to ₹171.91 lakh from ₹642.10 lakh.

Auditor Qualification

Statutory auditors Mohan & Mohan Associates issued a qualified opinion on the standalone financial statements. The qualification relates to a provision for contingencies of ₹1,349 lakh accumulated over 11 years. The auditors stated that no present obligation arising from a past event was established, and the provision does not comply with Ind AS 37. The current year charge was ₹120 lakh.

What the Numbers Show

While standalone operations delivered consistent growth with revenue up 9.24% and PAT rising 6.72%, the consolidated bottom line contracted by roughly 9.6%. This divergence highlights the drag from the Premier Tissues subsidiary, which contributed significantly less to the group's bottom line despite generating ₹9,462.56 lakh in turnover. The proposed sale will remove this volatility from future consolidated results.

Meeting Logistics

The AGM will be held via video conference or other audio-visual means. Shareholders holding shares as of September 22, 2026, are eligible to vote. Remote e-voting will be available from September 26 to September 28, 2026.