Sambandam Spinning Mills shareholders have approved all resolutions proposed at the company’s 52nd Annual General Meeting, held on September 18, 2026. The e-voting results, declared on September 19, 2026, show near-unanimous support for key corporate actions.

The meeting, conducted via audio-video conferencing from Salem, Tamil Nadu, saw 34 members attend in person. Remote e-voting was open from September 13 to September 17, 2026. Practicing Cost Accountant K. Karthikeyan served as the scrutinizer for the process.

Voting Results

All nine agenda items were passed with overwhelming majorities. The consolidated report shows that over 99% of votes cast supported each resolution.

Board Changes Confirmed

The high approval rates validate the significant restructuring of the Board of Directors:

• S. Bhaskaran was reappointed as a Non-Executive Independent Director for a second three-year term.
• TCA Srinivasa Prasad and S. Prakash were appointed as Non-Executive Independent Directors for their first three-year terms.
• The tenures of Dr. V. Sekar and D. Balasundaram ended upon the conclusion of the meeting, having completed their final terms.
• S. Dinakaran received shareholder approval to continue as Joint Managing Director despite attaining the age of seventy years.
• J. Sakthivel was reappointed as a retiring director.

Director Profiles

S. Bhaskaran brings over 40 years of experience in banking and financial services, having retired as General Manager from State Bank of India. He holds an MBA in Finance.

TCA Srinivasa Prasad is a Cost and Management Accountant with a PG Diploma in Management, experienced in governance frameworks and financial discipline.

S. Prakash holds a B.Tech in Textile and has over four decades of experience running spinning mills, including roles as President and COO.

Meeting Proceedings

Company Secretary S. Natarajan presided over the proceedings, which began at 10:45 am and concluded at 11:30 am. Statutory, cost, and secretarial auditors were present via video link. Shareholders reviewed the annual report and raised queries on financial statements and future prospects, which the chairman addressed.

The chairman commended employees for their cooperation during challenging periods and thanked bankers, customers, and government bodies for their support.

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.