Sarla Performance Fibers Limited shareholders approved a final dividend of ₹2 per equity share at the company’s 33rd Annual General Meeting (AGM) held on July 29, 2026. The meeting, conducted via Video Conferencing and Other Audio Visual Means (VC/OAVM), also saw the adoption of the audited standalone and consolidated financial statements for the fiscal year ended March 31, 2026. The qualification in the statutory auditor’s report, relating to an exceptional loss on the sale of preference shares in Sarla Flex Inc., was a key discussion point, with management assuring members that regulatory approvals for the transaction are under process and no uncertainty is foreseen.

The AGM commenced at 11:00 A.M. (IST) and concluded at 12:15 P.M. (IST), with the registered office in Silvassa deemed as the venue. Pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company submitted the summary of proceedings to the BSE and NSE. Remote e-voting, facilitated by MUFG Intime India Private Limited, ran from July 24, 2026, to July 28, 2026. Sixty-two members attended the meeting, and twenty registered speaker shareholders raised queries, which were addressed by the Chairman and management team.

Key Resolutions Passed

Shareholders voted on seven items, including ordinary and special resolutions. The key outcomes included the re-appointment of Ms. Neha Krishna Jhunjhunwala as a Director retiring by rotation and the ratification of remuneration payable to Cost Auditors. Special resolutions were passed to revise the remuneration of Ms. Neha Krishna Jhunjhunwala, waive the recovery of excess remuneration paid to her for FY2025-26, and approve the remuneration of Executive Directors under Section 197 of the Companies Act, 2013.

Audit Qualification Explained

The Chairman informed members that the Statutory Auditors’ Report contained a qualified opinion specifically relating to the exceptional loss recognized on the sale of preference shares held in Sarla Flex Inc. He explained that the transaction was undertaken after consultation with the Authorized Dealer Bank and that requisite regulatory approvals were currently being processed. Management stated that based on updates from the bank, they did not foresee any uncertainty regarding the receipt of these approvals. Apart from this specific qualification, the Statutory Auditors’ Report contained no other reservations, adverse remarks, or disclaimers.

The Secretarial Audit Report, presented by CS Swati Gupta, did not contain any qualifications or adverse remarks. The voting results, along with the Scrutinizer’s Report from M/s. Abbas Lakdawalla & Associates LLP, are expected to be declared within two working days from the conclusion of the AGM.

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.