SBC Exports Limited will hold its 15th Annual General Meeting on Wednesday, September 30, 2026, at 10:00 am at its registered office in Mirzapur, Uttar Pradesh.

The meeting agenda includes adoption of audited financial statements for FY26, approval of cost auditor remuneration for FY27, and member consent for material related party transactions with two group entities spanning five financial years.

Key agenda items

The AGM will transact the following businesses:

• Adoption of audited standalone and consolidated financial statements for the financial year ended March 31, 2026
• Approval of remuneration payable to cost auditors M/s. Durga Parsad and Associates (Firm Registration Number: 005998) for FY27, at a fee of ₹60,000
• Approval of related party transactions with Korporate Bizmax Limited for purchase of packaging material
• Approval of related party transactions with SBC Infotech Limited for purchase and/or supply of services

Related party transactions proposed for member approval

The company is seeking member consent for two material related party transactions, both reviewed and recommended by the Audit Committee on August 27, 2026. The table below summarises the key terms:

Korporate Bizmax Limited transaction

SBC Exports proposes to purchase packaging material from Korporate Bizmax Limited at a maximum value of up to ₹200 crore in each financial year, aggregating to a maximum of ₹1,000 crore over FY27 to FY31. As on June 30, 2026, the company had already undertaken transactions with Korporate Bizmax Limited amounting to ₹21.50 crore during FY27, which will form part of the ₹200 crore annual ceiling. The proposed maximum transaction value of ₹200 crore represents approximately 48.08% of the company's annual consolidated turnover of ₹416 crore, as per the latest audited consolidated financial statements.

The year-wise transaction ceiling for the Korporate Bizmax arrangement is as follows:

Mr. Govind Ji Gupta and Ms. Deepika Gupta have shareholding interests in SBC Finmart Limited and, through their respective shareholding interests therein, have an indirect interest in the related party structure involving Korporate Bizmax Limited. This interest has been disclosed to the Audit Committee, the Board of Directors, and the members.

SBC Infotech Limited transaction

SBC Exports also proposes to enter into and/or continue related party transactions with SBC Infotech Limited for the purchase and/or supply of services, at a maximum value of up to ₹100 crore in each financial year, aggregating to a maximum of ₹500 crore over the five financial years from FY27 to FY31. Mr. Govind Ji Gupta and Ms. Deepika Gupta have shareholding interest in SBC Infotech Limited and, by virtue of such interest, are concerned or interested in these transactions.

E-voting and record date details

Members whose names appear in the register of members as on the record date of September 23, 2026 will be eligible to cast their votes. The remote e-voting window opens on September 27, 2026 at 9:00 am and closes on September 29, 2026 at 5:00 pm. The register of members and share transfer books will remain closed from September 24, 2026 to September 30, 2026 (both days inclusive). E-voting is facilitated through Bigshare's i-Vote platform, accessible via CDSL, NSDL, and depository participants.

Sbc Exports has secured a significant export order valued at Rs 22.0 crore from M/s GAWGEE BROTHERS WHOLESALERS CO. LLC. The contract covers the supply of various garment articles including T-shirts, trousers, and shorts over a one-year period.

WHAT HAPPENED

Sbc Exports received a confirmed export order from UAE-based M/s GAWGEE BROTHERS WHOLESALERS CO. LLC on September 4, 2026. The agreement mandates that each box contain all sizes (S, M, L, XL, XXL) and each set of 2 pieces be packed in one polybag. Mixing of pieces or quantities is not permitted in one box. Part payment and shipment are allowed as per agreed terms, with all prices quoted in USD.

ORDER IN FINANCIAL CONTEXT

At Rs 22.0 crore, this order represents approximately 18.8% of the company's average quarterly revenue of Rs 117.28 crore over the last four quarters. The total disclosed order book stands at Rs 52.20 crore (sum of orders disclosed across the last 3 fiscal quarters shown in the table below). This backlog covers only 0.45 quarters of average quarterly revenue.

COMPANY ORDER TRACK RECORD

The company has received orders from multiple entity types, including international clients and government bodies. The current order value of Rs 22.0 crore is larger than the sole other disclosed order in the last three quarters, which was valued at Rs 52.2 lakh.

Note: The new order from M/s GAWGEE BROTHERS WHOLESALERS CO. LLC is recent and may be reflected in upcoming quarterly disclosures.

EXECUTION AND REVENUE QUALITY

The company demonstrates strong margin expansion in recent quarters. Operating profit margin improved significantly to 10.84% in Q1FY27 from 4.17% in Q4FY26. Net profit also rose to Rs 9.60 crore in Q1FY27 compared to Rs 6.10 crore in the preceding quarter.

REVENUE GROWTH - ORDER WINS TRANSLATING TO REVENUE

As Sbc Exports has sustained order wins, its annual revenue has grown from Rs 309.00 crore in FY25 to Rs 403.21 crore in FY26, representing a YoY growth of +30.5%. This top-line expansion has been accompanied by robust profit growth, with net profit increasing by +86.5% year-on-year in FY26.

WORKING CAPITAL AND EXECUTION CAPACITY

The balance sheet shows a current ratio of 1.22x, providing adequate short-term liquidity for ongoing operations. However, the Total Liabilities/Equity stands at 4.45x, indicating elevated leverage that includes trade payables and other non-debt liabilities. Operating cashflow turned negative at -Rs 69.40 crore in FY25, down from -Rs 4.80 crore in FY24.

WHAT TO WATCH

• Execution rate: Monitor whether the Rs 22.0 crore order converts to revenue within the one-year timeline without impacting cash conversion cycles.
• OPM trajectory: The recent improvement in operating margins to double digits should be sustained as new orders execute.
• Cash conversion: With operating cashflow negative in FY25, track if receivables collection improves under the agreed payment terms of this new export order.
• Client concentration: Diversification into international clients like GAWGEE BROTHERS reduces single-client dependency risk.

KEY OBSERVATIONS

• Valuation check (as of 04 Sep 2026): P/E of 54.1x against ROCE of 30.65%. Valuation was pricing in execution improvement at the time of filing.
• Leverage flag: Total Liabilities/Equity of 4.45x; balance sheet carries elevated liabilities.
• Cash conversion: Operating cashflow of -Rs 69.40 crore in FY25; backlog is not converting to cash efficiently.