Satia Industries has scheduled its 45th Annual General Meeting (AGM) for September 30, 2026, to approve a final dividend of ₹0.40 per equity share for FY26. The meeting will be held at the company’s registered office in Sri Muktsar Sahib, Punjab, at 10:30 am.

Key Agenda Items

The ordinary business includes the adoption of the audited financial statements as at March 31, 2026. Shareholders will vote on the dividend recommendation by the Board of Directors out of profits for the financial year ending March 31, 2026.

Director Re-appointment

Mr. Chirag Satia, Executive Director, retires by rotation and offers himself for re-appointment. He has served since February 13, 2015, and holds 69,60,669 shares (6.96% stake). His father, Dr. Ajay Satia, serves as Chairman cum Managing Director.

Cost Auditor Remuneration

Under special business, shareholders will ratify the remuneration of ₹2,00,000 plus applicable taxes and out-of-pocket expenses to M/s Balwinder & Associates for conducting the cost audit for FY27.

Voting Schedule

Remote e-voting will commence on September 27, 2026, and conclude on September 29, 2026. The cut-off date for determining eligible members is September 23, 2026. The register of members will remain closed from September 24 to September 30, 2026.

FY26 Financial Performance

Satia Industries reported a challenging FY26, with revenue from operations declining 4% to ₹14,519 million (₹15,120 million in FY25). EBITDA fell 51% to ₹1,318 million, with margins contracting by 879 basis points to 9.1% from 17.9%. Profit for the period was ₹409 million against ₹1,186 million in FY25.

The decline in profitability reflects sustained pressure on realisations from low-cost imports, higher agro-fibre costs due to flooding in Punjab, and elevated fuel costs in Q4FY26 following geopolitical tensions in West Asia.

What the Numbers Show

Net debt to equity rose to 0.25x from 0.14x in FY25, driven by debt drawdowns for ongoing capital expenditure, specifically the PM3 upgrade. Despite margin compression, the company maintained its dividend payout, supported by strong operating cash flows of ₹23,349 million.

Satia Industries reported a net loss of ₹1,712.00 lakh for the quarter ended June 30, 2026, reversing a net profit of ₹3,160.31 lakh in the corresponding period of FY26. The deterioration in profitability was primarily driven by a significant one-time, non-cash deferred tax charge rather than operational performance.

Revenue from operations contracted by 2.45% year-on-year to ₹36,181.47 lakh, down from ₹37,092.07 lakh in Q1FY26. This decline coincides with the planned shutdown of Paper Machine 3, which began on June 1, 2026, for comprehensive refurbishment and modernization expected to last approximately five months.

Financial Performance

The company’s total income stood at ₹37,287.22 lakh for the quarter, against total expenses of ₹34,375.22 lakh. Profit before tax and exceptional items was ₹2,912.00 lakh, compared to ₹3,079.02 lakh in Q1FY26. However, the transition to the concessional tax regime under Section 200 of the Income-tax Act, 2025, triggered a remeasurement of deferred tax balances.

The tax expense for the quarter amounted to ₹4,624.00 lakh, comprising a current tax provision of ₹690.87 lakh and a deferred tax charge of ₹3,933.13 lakh. In contrast, the company recorded a net tax benefit of ₹81.29 lakh in Q1FY26. The company is no longer eligible for deductions under Section 80-IA for its Cogeneration Division following this regulatory shift.

What the Numbers Show

While operational profitability remained relatively stable with profit before tax at ₹2,912.00 lakh, the reported net loss highlights a significant divergence between operating cash generation and accounting profits due to tax accounting changes. The deferred tax charge alone exceeded the entire profit before tax for the quarter, indicating that the loss is non-cash in nature and does not reflect a deterioration in core business operations or cash flows.

Segment and Corporate Updates

The paper segment contributed ₹36,136.50 lakh to revenue, while the agriculture segment added ₹44.97 lakh. Segment profit before interest and tax for the paper business was ₹3,196.58 lakh, down from ₹3,548.79 lakh in Q1FY26.

The Board of Directors also approved the appointment of M/s Balwinder & Associates as Cost Auditor for FY27. The company’s 45th Annual General Meeting is scheduled for September 30, 2026, at its registered office in Sri Muktsar Sahib, Punjab. The register of members will remain closed from September 24 to September 30, 2026.