Sambandam Spinning Mills Limited held its 52nd Annual General Meeting on September 18, 2026. The meeting was conducted via audio-video conferencing from the company’s registered office in Salem, Tamil Nadu.

The session began at 10:45 am and concluded at 11:30 am. A total of 34 members, including promoter group directors, attended the proceedings. The Board of Directors participated from various locations through video conferencing.

Meeting Proceedings

Company Secretary S. Natarajan welcomed shareholders, directors, and auditors. The statutory auditor, cost auditor, secretarial auditor, and scrutinizer were present via video link. After confirming the quorum, the chairman called the meeting to order.

Shareholders reviewed the notice, board report, and annexures of the 52nd annual report. The chairman addressed the attendees regarding the company’s performance and outlook for the coming year, emphasizing full compliance with corporate governance standards.

Shareholder Engagement

Speaker shareholders raised queries on financial statements and future business prospects. The chairman responded to these questions, providing clarity on industry status and future outlook. He commended employees and labor for their cooperation during challenging periods and adherence to safety measures.

The chairman also expressed gratitude to bankers, customers, and central and state governments for their support.

Voting Process

Remote e-voting commenced on September 13, 2026, at 9:15 am and ended on September 17, 2026, at 5:00 pm. Members who had not voted remotely could cast electronic votes during the meeting.

Mr. K. Karthikeyan, a practicing cost accountant, was appointed as the scrutinizer to ensure fair and transparent voting. Results will be declared within two working days and uploaded to the company website.

Sambandam Spinning Mills reported a narrowed net loss of ₹5.74 crore for the financial year ended March 2026, improving from the ₹7.43 crore loss recorded in FY25. The company’s revenue from operations declined by 1.8% year-on-year to ₹2,636.6 crore, reflecting the challenging pricing environment in the textile sector.

The improvement in the bottom line was primarily driven by better operating margins and improved working capital management, despite a marginal decline in top-line sales. Gross production volume increased slightly to 87.39 lakh kg from 86.82 lakh kg in the previous year, while sale volume rose to 90.92 lakh kg from 88.89 lakh kg.

Financial Performance

The company’s EBITDA expanded by nearly 20% to ₹128.7 crore from ₹107.4 crore in FY25, indicating improved operational efficiency. This margin expansion occurred despite a steep decline in selling prices of yarn, which fell more sharply than raw material costs. Management attributed this to strategic shifts towards value-added counts and timely procurement of cotton during periods of reasonable pricing.

Operational Highlights

Capacity utilization remained steady at approximately 90% during the year, constrained by uncertainties in off-take. However, the company effectively managed power costs through its green energy initiatives. Solar and wind energy sources contributed 322.98 lakh kWh towards overall power requirements, helping sustain power cost per unit even as quantitative power consumption decreased.

Direct exports surged significantly to ₹154.5 crore from ₹48.6 crore in the previous year, offsetting some domestic market pressures. Conversely, merchandise exports declined to ₹6 crore from ₹11.7 crore. Domestic sales accounted for the bulk of revenue at ₹2,469.5 crore, down from ₹2,613.5 crore in FY25.

What the Numbers Show

A key divergence in the data is the widening gap between revenue decline and EBITDA growth. While revenue contracted by 1.8%, EBITDA expanded by 19.8%. This suggests that the company successfully passed on some cost efficiencies or benefited from lower input costs relative to output prices in specific segments, particularly value-added yarns. Additionally, the debtor turnover ratio improved to 13.26 times from 10.55 times, indicating stronger collection efficiency despite the sluggish market conditions.

Board and Corporate Actions

The 52nd Annual General Meeting is scheduled for September 18, 2026. Key agenda items include the reappointment of Joint Managing Director S. Dinakaran beyond the age of 70 years and the appointment of two new independent directors, T.C.A. Srinivasa Prasad and S. Prakash, to replace outgoing directors Dr. V. Sekar and D. Balasundaram.

The board did not recommend any dividend for FY26 due to the incurred loss. Statutory auditors P.N. Raghavendra Rao & Co. confirmed their eligibility for reappointment for the term ending at the 53rd AGM in 2027.