Sadhana Nitrochem submitted its Business Responsibility and Sustainability Report (BRSR) for FY26 to stock exchanges on September 7, 2026. The filing details the company’s environmental performance, governance structures, and social impact metrics for the financial year ended March 31, 2026.

Environmental Performance

The company reported a significant reduction in waste generation during FY26 compared to the previous year. Total waste generated fell to 186.22 metric tonnes from 3,801.88 metric tonnes in FY25. This decline was primarily driven by a sharp drop in other hazardous waste, which decreased to 180.58 metric tonnes from 3,780.88 metric tonnes.

Energy consumption also saw a notable decrease. Total energy consumed from non-renewable sources dropped to 24,656.45 GJ from 75,270.95 GJ. Consequently, Scope 1 greenhouse gas emissions fell to 1,250 TCO2e from 4,872.43 TCO2e, while Scope 2 emissions rose slightly to 1,800 TCO2e from 2,645.80 TCO2e.

Water withdrawal decreased significantly to 20,143 kilolitres from 53,628 kilolitres, entirely sourced from third parties. The company treats effluent through its own plant before sending it to the common ETP of the Roha MIDC division.

Business Operations and Concentration

Sadhana Nitro Chem operates primarily in the manufacturing of chemical intermediates, accounting for 95% of turnover. Meta Amino Phenol and SND-27 (ODB2) are the key revenue contributors, representing 49.02% and 46.47% of total turnover respectively.

The report highlights a shift in customer concentration. Sales to dealers or distributors increased to 68.53% of total sales from 60.54% in FY25. However, the number of dealers reduced sharply to 3 from 10. Purchases from trading houses fell to 43.28% of total purchases from 94.09% in the prior year.

Exports contributed 15% to total turnover, with domestic sales making up the remaining 85%. The company serves customers across nine Indian states and twelve international countries.

Governance and Social Metrics

The company employs 190 permanent employees and 46 permanent workers. Female representation among employees stands at 5.26%, with no female workers employed. The board includes two women directors, constituting 25% of the total board strength.

Employee turnover for permanent staff was 31.82% in FY26, up from 26.11% in FY25. The company reported zero fatalities and zero lost-time injuries for employees. Workers recorded four total recordable work-related injuries, resulting in a Lost Time Injury Frequency Rate (LTIFR) of 4.92 per million person-hours worked.

What the Numbers Show

The drastic reduction in hazardous waste and overall energy consumption suggests a potential operational scale-down or significant process optimization in FY26. With hazardous waste dropping by over 95% alongside a similar decline in fuel consumption, the environmental footprint has contracted sharply relative to the previous year's output levels.

Sadhana Nitro Chem has scheduled its 53rd Annual General Meeting for September 30, 2026. The meeting will be conducted through Video Conferencing or Other Audio-Visual Means to transact ordinary and special business items.

The cut-off date for determining voting eligibility is set for September 23, 2026. Shareholders can exercise their voting rights via remote e-voting starting from September 27, 2026, at 9:00 am until September 29, 2026, at 5:00 pm.

Key Agenda Items

The Board has proposed several resolutions for shareholder approval during the meeting. The primary items include:

• Adoption of the Audited Financial Statements for the financial year ended March 31, 2026.
• Reappointment of Mrs. Seema A. Javeri as a director liable to retire by rotation.
• Ratification of remuneration for Cost Auditors M/s. Vinay Mulay & Co., amounting to ₹1,25,000 plus applicable taxes and out-of-pocket expenses.

Director Reappointments

Shareholders will vote on the reappointment of three key executive directors for a term of three years, effective May 1, 2027. The proposed remuneration structure for each director allows for up to 5% of the net profit, subject to a minimum remuneration of ₹1,68,00,000 per annum in case of no profit or inadequacy of profit.

These appointments require the passing of Special Resolutions. The directors are related parties: Asit D. Javeri is the father of Abhishek A. Javeri and husband of Seema A. Javeri.

Financial Context

The AGM notice includes financial performance data for the years ended March 2024, March 2025, and March 2026. The company reported a net loss of ₹8,817.64 lakh in FY26, following a net profit of ₹912.54 lakh in FY25 and ₹1,611.03 lakh in FY24. Total income declined significantly to ₹4,885.63 lakh in FY26 from ₹13,598.95 lakh in FY25.

What the Numbers Show

The shift from a net profit of ₹912.54 lakh in FY25 to a net loss of ₹8,817.64 lakh in FY26 highlights a sharp deterioration in profitability. This decline coincides with a drop in total income by over 63% year-on-year, while total expenses remained relatively stable at ₹13,703.27 lakh compared to ₹12,686.41 lakh in the prior year.