Shiva Texyarn shareholders approved alterations to the Memorandum of Association (MOA) object clause and adopted a new set of Articles of Association (AOA) at the company's 45th Annual General Meeting on August 27, 2026.

The meeting also saw the approval of a 6% dividend on equity shares and the reappointment of Smt. S Sujana Abirami as a director. The proceedings were conducted via Video Conferencing or Other Audio-Visual Means, with Chairman S V Alagappan presiding from the registered office in Coimbatore.

Key Resolutions Passed

Shareholders voted on three ordinary business items and three special business items. The Board proposed the final dividend, which was approved by members.

Special resolutions focused on corporate governance updates:

• Altering the object clause of the Memorandum of Association to enlarge operational areas.
• Adopting new Articles of Association compliant with the Companies Act, 2013, replacing the existing AOA based on the erstwhile Companies Act, 1956.
• Ratifying the remuneration for M Nagarajan, the Cost Auditor.

Details of MOA and AOA Changes

The alteration to the main object clause involves inserting a new clause III(A)(2) after clause III(A)(1). This change enables the company to enlarge its areas of operations, allowing proposed activities to be combined conveniently with present activities.

Additionally, certain object clauses under Clause III(B) were amended to align with the Companies Act, 2013. Objects under Clause III(C), deemed irrelevant to current business activities, were deleted or regrouped under Clause III(B). The new AOA was adopted to ensure full alignment with current statutory provisions.

Attendance and Governance

Thirty-seven members representing 96,04,285 shares attended the meeting. Key attendees included Managing Director S K Sundararaman, CFO C Krishnakumar, and statutory auditors from VKS Aiyer & Co. Sri R Dhanasekaran served as the scrutinizer for the e-voting process.

Managing Director S K Sundararaman briefed members on operational challenges, citing spiraling cotton prices. He outlined measures taken to improve efficiency and cost control amidst these industry headwinds.

Shiva Texyarn Limited reported a standalone net profit of ₹1.72 crore for the quarter ended June 30, 2026, a 24% decline from ₹2.27 crore in the corresponding period of FY25. The drop underscores the company’s sensitivity to non-operational income volatility, as other income fell sharply to ₹0.37 crore from ₹2.05 crore in Q1FY25. For investors tracking textile sector performance, the result highlights how irregular other income streams and input cost fluctuations impact bottom-line stability.

The Board of Directors approved the unaudited financial results on August 6, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The figures were reviewed by statutory auditors VKS Aiyer & Co., Chartered Accountants, Coimbatore, under Standard on Review Engagement (SRE) 2410. The consolidated results include the associate company L.K. Distributors Private Limited.

Financial Performance

Revenue from operations stood at ₹73.81 crore, a 3% decrease from ₹76.18 crore in Q1FY25 but an 11% drop from the preceding quarter’s ₹82.87 crore. Total income was ₹74.19 crore against ₹76.39 crore in the prior year quarter. Expenses totaled ₹71.92 crore, slightly below the ₹73.68 crore recorded in Q1FY25, primarily due to lower cost of materials consumed at ₹29.18 crore versus ₹41.64 crore previously.

Basic earnings per share were ₹1.33, compared to ₹0.25 in Q4FY26 and ₹1.75 in Q1FY25. Consolidated net profit was ₹1.86 crore, down from ₹2.46 crore in Q1FY25.

What the Numbers Show

The divergence between profit before tax trends and net profit outcomes is notable. While profit before tax rose to ₹2.27 crore from ₹0.94 crore in the prior quarter, it remained below the ₹2.70 crore recorded in Q1FY25. The primary driver for the sequential improvement in profitability was not revenue growth—which actually declined—but rather a sharp reduction in total expenses, which fell from ₹86.19 crore to ₹71.92 crore. However, the year-on-year comparison reveals that despite lower material costs, the inability to replicate the higher other income levels seen in previous periods constrained overall profitability growth.