Sheshadri Industries has scheduled its 17th Annual General Meeting (AGM) for September 30, 2026. The company has also announced the book closure period and e-voting timelines for shareholders.

The meeting will be held at the Incredible One Hotel in Secunderabad, Telangana, at 10:00 am. Business to be transacted includes the adoption of financial statements for FY26 and special resolutions regarding the reappointment of Managing Director Jeetender Kumar Agarwal.

Key Dates and Voting Details

The register of members and share transfer books will remain closed from September 19, 2026, to September 30, 2026. The cut-off date to ascertain eligibility for voting electronically is September 18, 2026.

Remote e-voting will commence on September 26, 2026, at 9:00 am and end on September 29, 2026, at 5:00 pm.

Financial Performance

Revenue from operations remained relatively stable at ₹2,824.65 lakh, a marginal increase of 0.2% over the ₹2,820.02 lakh reported in FY25. However, operational profitability faced pressure as profit before exceptional items and tax stood at ₹443.44 lakh, up from ₹355.37 lakh in the prior year.

The textile manufacturer reported a net profit of ₹218.42 lakh for the fiscal year ended March 31, 2026, down significantly from ₹837.21 lakh in the previous year. This decline was driven by exceptional items that reduced profit before tax by ₹225.01 lakh, compared to an exceptional gain of ₹479.96 lakh in FY25.

The company did not propose any dividend for the year ended March 31, 2026. Total income decreased slightly to ₹3,405.41 lakh from ₹3,445.86 lakh, while total expenses fell to ₹2,961.97 lakh from ₹3,090.49 lakh.

What the Numbers Show

A critical divergence exists between operational performance and bottom-line results due to non-recurring items. While core operations generated a higher profit before exceptional items (₹443.44 lakh vs ₹355.37 lakh), the final net profit was heavily impacted by exceptional charges. In FY25, a substantial gain on the sale of fixed assets contributed ₹479.96 lakh to profits. In contrast, FY26 saw exceptional losses totaling ₹225.01 lakh, primarily driven by a write-off of export licence receivables amounting to ₹214.11 lakh and GST demands of ₹10.90 lakh.

Governance and Related Parties

Shareholders will vote on the reappointment of Jeetender Kumar Agarwal as Managing Director for a five-year term commencing September 3, 2026. His remuneration package includes a basic salary of ₹3.5 lakh per month, plus perquisites and a commission capped at 1% of net profits or 50% of basic salary, whichever is lower.

The AGM agenda also includes approval for related-party transactions estimated up to ₹81 crore for FY27. These transactions involve entities where relatives of the Managing Director hold directorships or partnerships:

• Ishayu Exports Limited: ₹20 crore
• Devshree International Private Limited: ₹20 crore
• Ishayu Garments Private Limited: ₹15 crore
• Acti Tex Global Private Limited: ₹5 crore
• Suryavanshi Spinning Mills Limited: ₹5 crore
• Suryavanshi Industries Limited: ₹5 crore
• Aananda Lakshmi Spinning Mills Limited: ₹5 crore
• Sheshadri Power and Infrastructure Private Limited: ₹5 crore
• Innovative Interiors: ₹1 crore

The board asserts these deals are conducted at arm's length in the ordinary course of business.

Auditor Observations

Statutory auditors K.S. Rao & Co. issued a qualified opinion on the financial statements. The qualification arises from the company's failure to provide for interest payable on outstanding TDS dues of ₹31.23 lakh. Consequently, the auditors noted that current liabilities are understated by this amount, and profit for the year is overstated by ₹9.38 lakh. Additionally, the secretarial audit highlighted long-pending payables of ₹648.82 lakh and capital advances of ₹21.33 lakh where the limitation period has expired.

Sheshadri Industries reported a net profit of ₹72.73 lakh for the quarter ended June 30, 2026, marking a significant turnaround from the net loss of ₹1.27 crore recorded in the same period of the previous fiscal year. The positive bottom line was primarily driven by a ₹34.64 lakh gain from exceptional items—specifically the sale of used equipment—and improved operational efficiency that kept expenses below total income of ₹701.51 lakh. This result is particularly notable given the company’s accumulated losses of ₹1,633.95 lakh and a balance sheet where current liabilities exceed current assets, prompting the financial statements to be prepared on a going concern basis.

The Board of Directors approved the unaudited standalone financial results during a meeting held on August 10, 2026, at the company’s registered office in Secunderabad. The proceedings were conducted in compliance with Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In addition to approving the financials and the Directors' Report for FY26, the Board re-appointed Jeetender Kumar Agarwal (DIN: 00041946) as Managing Director.

Financial Performance Highlights

Total expenses for the quarter amounted to ₹663.42 lakh, down from ₹805.33 lakh in the preceding quarter. Key expense components included purchase of stock-in-trade at ₹375.51 lakh and finance costs of ₹58.80 lakh. Depreciation and amortization remained stable at ₹36.78 lakh. The profit before exceptional items and tax stood at ₹38.09 lakh. In contrast, the same quarter last year saw a negative impact of ₹2.25 crore from exceptional items, which had dragged the company into a net loss position despite similar operational margins.

What the Numbers Show

The shift from a net loss to a net profit is largely driven by the absence of the large exceptional loss recorded in Q1FY26 and modest operational cost control. While revenue from operations declined slightly to ₹577.56 lakh from ₹634.46 lakh year-on-year, the company managed to keep total expenses lower than total income. However, investors should note that the company continues to operate with substantial accumulated losses exceeding ₹1,600 lakh. The financial health remains fragile, with current liabilities exceeding current assets, necessitating the going concern disclosure based on the market value of immovable properties.

Auditor’s Qualified Conclusion

K.S. Rao & Co., the statutory auditors, issued a qualified conclusion on the interim financial results. The qualification arises because no provision has been made in the books of account for interest payable on outstanding unpaid statutory dues of Tax Deducted at Source (TDS). The total amount involved is ₹32.78 lakh, including arrears of ₹31.23 lakh up to March 31, 2026. Apart from this matter, the auditors stated that nothing came to their attention to suggest that the statement does not disclose the information required under SEBI regulations or contains any material misstatement. The review was conducted in accordance with Standard on Review Engagements (SRE) 2410.