Sahyadri Industries delivered a robust financial performance for the year ended March 31, 2026, with net profit surging to ₹29.00 crores from ₹19.46 crores in the previous year. The Board of Directors, at its meeting held on May 9, 2026—commencing at 1:45 P.M. and concluding at 4:52 P.M.—approved the audited financial results for the quarter and year ended March 31, 2026, along with several significant governance decisions. The statutory auditors, M/s Joshi Apte & Company, issued an unmodified opinion on the annual financial results. In compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company subsequently published the audited financial results in newspapers "Financial Express" and "Loksatta" on May 10, 2026.

Financial Performance: Revenue and Profitability

Sahyadri Industries recorded total income of ₹684.87 crores for FY26, compared to ₹608.79 crores in FY25. Revenue from operations for the full year stood at ₹676.83 crores against ₹600.53 crores in the prior year. Profit before tax for FY26 came in at ₹38.73 crores versus ₹26.18 crores in FY25, after accounting for an exceptional item of ₹0.64 crores related to a one-time increase in provision for employee benefit expenses following the consolidation of labour legislations by the Government of India. The following table summarises the key financial metrics:

For the quarter ended March 31, 2026, total income stood at ₹196.53 crores compared to ₹152.57 crores in the corresponding quarter of the previous year. Net profit for the quarter was ₹10.55 crores against ₹4.27 crores in the same quarter of the prior year.

Segment Performance

The company operates across two segments—Building Material and Power Generation. The Building Material segment remained the dominant contributor, with segment revenue of ₹671.68 crores for FY26 compared to ₹594.50 crores in FY25. The Power Generation segment reported revenue of ₹14.44 crores for FY26 versus ₹17.50 crores in the prior year. Segment-wise results before tax and interest are presented below:

Balance Sheet Highlights

As at March 31, 2026, Sahyadri Industries' total assets stood at ₹532.10 crores compared to ₹542.91 crores in the prior year. Total equity improved to ₹406.09 crores from ₹378.29 crores, reflecting the strong profitability during the year. A notable reduction in current borrowings—from ₹71.00 crores to ₹16.29 crores—underscores significant deleveraging during FY26. Key balance sheet items are summarised below:

Cash Flow Summary

The company generated strong operating cash flows during FY26. Net cash from operating activities stood at ₹121.34 crores compared to ₹53.89 crores in FY25, driven by improved profitability and working capital management, including a significant reduction in inventories. Net cash used in investing activities was ₹50.35 crores, while net cash used in financing activities was ₹66.20 crores, primarily reflecting repayment of secured loans. Cash and cash equivalents at the close of the year stood at ₹6.72 crores, up from ₹1.93 crores at the start of the year.

Dividend and Expansion Plans

The Board has recommended a final dividend of ₹1.5 per equity share of face value ₹10 each for FY26, subject to approval of members at the ensuing 32nd Annual General Meeting. The book closure and record date for the purpose of dividend payment will be determined later and communicated separately. On the expansion front, the company is in the process of setting up a new unit in Odisha for manufacturing Asbestos Corrugated Sheets with a capacity of 1,20,000 MT. Additionally, activities related to setting up a Non-Asbestos Cement Boards plant in Maharashtra with a capacity of 72,000 MT have been initiated, with land identified and acquisition in process.

Board, Governance, and Committee Changes

The Board approved several governance-related decisions at its May 9, 2026 meeting. Key appointments and re-appointments are summarised below:

All director appointments and re-appointments are subject to approval of the members of the company. The Board also approved the reconstitution of the Audit Committee, Nomination & Remuneration Committee, Stakeholder Relationship Committee, and CSR Committee with immediate effect. The reconstituted committees are as follows:

Additionally, the notice for the 32nd Annual General Meeting and the Postal Ballot Notice were approved, covering matters including audited financial statements, final dividend, director appointments, and auditor appointments.

Sahyadri Industries Limited has signed a Share Subscription and Shareholders' Agreement (SSSHA) on May 4, 2026, marking a significant step in its renewable energy strategy. The agreement formalises the company's acquisition of a 7.14% equity stake in Emerge Solar One Private Limited, a move aimed at securing solar power through a group captive arrangement.

Agreement Details

The SSSHA was executed with the Special Purpose Vehicle (SPV) and the Parent Company on May 4, 2026. This development follows the Board of Directors' approval of the proposal, which was communicated via an intimation dated April 4, 2026. The key parameters of the transaction are outlined below:

Group Captive Solar Scheme

The equity acquisition in Emerge Solar One Private Limited is structured under a group captive scheme as provided for under the Electricity Act, 2003 (as amended) and applicable rules thereunder. Under such arrangements, a company acquires a minimum prescribed equity stake in a power generating entity and is entitled to consume power generated in proportion to its shareholding. This structure enables industrial consumers to source power directly from dedicated generation assets.

Regulatory Disclosure

The disclosure was made by Sahyadri Industries Limited to both the Bombay Stock Exchange and the National Stock Exchange of India Limited in compliance with Regulation 30 of the applicable listing regulations. The intimation was signed by Rajib Kumar Gope, Company Secretary and Compliance Officer (Membership No. F8417), on behalf of the company.