Sarla Performance Fibers Limited shareholders approved all seven resolutions at the company’s 33rd Annual General Meeting (AGM) held on July 29, 2026. The key outcome was the declaration of a final dividend of ₹2 per equity share for FY26, payable to shareholders on the record date of July 22, 2026. The meeting, conducted via Video Conferencing and Other Audio Visual Means (VC/OAVM), saw high participation with 71.87% of outstanding shares polled, reflecting strong shareholder engagement in the company’s governance matters.

The voting results were submitted to the BSE and NSE pursuant to Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Scrutinizer’s Report, issued by M/s. Abbas Lakdawalla & Associates LLP on July 29, 2026, confirmed that all resolutions passed with the requisite majority. Remote e-voting was facilitated by MUFG Intime India Private Limited from July 24, 2026, to July 28, 2026. A total of 62 members attended the meeting, comprising 11 promoters and 51 public shareholders.

Voting Results Overview

The promoter group, holding 47,687,207 shares, voted in favor of all resolutions. Public institutional investors showed dissent on two special resolutions related to executive remuneration, while public non-institutional shareholders largely supported all items. The total number of shareholders on the record date of July 22, 2026, was 32,934.

Key Resolutions and Dissent

The most significant dissent came from public institutional investors regarding the re-appointment of Ms. Neha Krishna Jhunjhunwala and the approval of aggregate remuneration for Executive Directors under Section 197 of the Companies Act, 2013. Public institutions voted entirely against these two resolutions, casting 507,339 votes each. However, strong support from the promoter group and public non-institutional shareholders ensured both resolutions passed with 99.11% support overall.

The ordinary resolution to declare a final dividend of ₹2 per equity share received near-unanimous support, with only one vote cast against it by a public non-institutional shareholder. The adoption of the audited standalone and consolidated financial statements for FY26 also received 100% support across all categories.

Audit Qualification Context

During the AGM, management addressed the qualification in the statutory auditor’s report concerning an exceptional loss on the sale of preference shares in Sarla Flex Inc. The Chairman assured members that regulatory approvals for the transaction are being processed through the Authorized Dealer Bank and no uncertainty is foreseen regarding the receipt of these approvals. Apart from this specific matter, the Statutory Auditors’ Report contained no other reservations or adverse remarks.

Sarla Performance Fibers Limited has submitted post-dispatch newspaper advertisements for its 33rd Annual General Meeting (AGM), scheduled for Wednesday, July 29, 2026, at 11:00 a.m. (IST) through Video Conferencing (VC) / Other Audio-Visual Means (OAVM). The advertisements were published in the Financial Express and Gujarat Guardian on July 02, 2026. The filing was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

33rd AGM Details

The key details of the 33rd AGM are as follows:

The agenda for the 33rd AGM includes adoption of standalone and consolidated financial statements for FY 2025-26, declaration of the recommended Final Dividend, and re-appointment of Ms. Neha Krishna Jhunjhunwala as Director retiring by rotation.

Dividend Recommendation

The Board of Directors, at its meeting held on April 22, 2026, recommended a Final Dividend of ₹2.00 per equity share of face value ₹1.00 each, i.e., at the rate of 200% for FY 2025-26, subject to approval of Members at the 33rd AGM. The Promoter and Promoter Group have voluntarily waived their entitlement to the Final Dividend for FY 2025-26. If approved, the total cash outflow to public shareholders is estimated at approximately ₹7,16,31,586.

Financial Performance Overview

FY 2025-26 was marked by significant global uncertainty, including trade policy disruptions and volatile commodity prices. Despite these headwinds, the company reported the following key financial results:

Standalone revenue declined primarily due to a 10.63% fall in sales volumes, partially offset by improved realisations. The standalone operating profit margin contracted by 449 basis points to 14.70% from 19.19%, largely on account of a one-time mark-to-market (MTM) loss of ₹17.58 crore on Euro-denominated borrowings.