Shree Balaji (Mala) Textiles has scheduled its 21st Annual General Meeting for September 30, 2026. The meeting will address a significant increase in the company's borrowing capacity to support future operations.

The event will be conducted via Video Conferencing or Other Audio Visual Means. Remote e-voting facilities will be available from 9:00 am on September 27, 2026, until 5:00 pm on September 29, 2026.

Key Agenda Items

Shareholders will vote on several ordinary and special resolutions. The primary items include:

• Adoption of audited standalone financial statements for FY26.
• Re-appointment of Ms. Hemlata Kedia as a Director by rotation.
• Appointment of Ms. Rishika Kedia as an Executive Director.
• Appointment of Ms. Harsha Pugalia as Secretarial Auditor for five financial years.

Borrowing Limit Increase

The most material item on the agenda is a special resolution to increase the company's borrowing limits under Section 180(1)(c) of the Companies Act, 2013.

The Board seeks consent to borrow sums that, when combined with existing borrowings, may exceed the aggregate of paid-up share capital and free reserves. The total aggregate borrowings will not exceed ₹300 crore. This facility aims to meet ongoing business requirements, anticipated expansion plans, and capital expenditures.

Governance Changes

Ms. Rishika Kedia, currently serving as an Additional Director since February 23, 2026, will be regularized as an Executive Director. Her tenure will be subject to retirement by rotation. Additionally, Ms. Harsha Pugalia has been recommended as the Secretarial Auditor for the term commencing from FY26 up to FY30.

What the Numbers Show

The request for a borrowing limit of ₹300 crore indicates a strategic shift towards leveraging debt for growth. This cap applies to aggregate borrowings excluding temporary loans obtained in the ordinary course of business. The move suggests the company anticipates significant capital needs for expansion or working capital support in the near term.

Shree Balaji (Mala) Textiles Limited reported a 17.4% year-on-year rise in net profit to ₹57.82 crore for the financial year ended March 31, 2026. Revenue from operations grew by approximately 9.8% to ₹2,119.7 crore, reflecting steady progress in the cotton saree manufacturing segment.

The company scheduled its 21st Annual General Meeting for September 30, 2026. Shareholders will consider key resolutions including a significant increase in borrowing limits and board appointments.

Financial Performance Overview

Revenue from operations stood at ₹2,119.7 crore in FY26, compared with ₹1,930.4 crore in the previous fiscal year. Profit before tax improved to ₹79.3 crore from ₹64.6 crore. Total assets increased to ₹1,486.4 crore as of March 31, 2026, up from ₹1,388.8 crore in FY25.

What the Numbers Show

Profit before tax grew at a faster rate (22.8%) than revenue (9.8%), indicating an improvement in overall earnings performance during the year. This divergence suggests better cost management or margin expansion relative to the top-line growth.

AGM Resolutions and Corporate Actions

The Board seeks shareholder approval for several strategic initiatives at the upcoming AGM:

• Borrowing Limit Increase: Approval to borrow up to ₹300 crore under Section 180(1)(c) of the Companies Act, 2013, to support business operations and expansion plans.
• Board Appointments: Regularization of Ms. Rishika Kedia’s appointment as Executive Director and re-appointment of Ms. Hemlata Kedia as Director.
• Secretarial Auditor: Appointment of Ms. Harsha Pugalia for a five-year term commencing from FY26.

Capital Structure and Dividends

The company issued 64.85 lakh bonus shares in a 9:1 ratio during the year. Consequently, the paid-up share capital rose to ₹72.05 crore from ₹7.2 crore. No dividend was recommended for FY26, with management citing future growth plans as the primary reason.

Working Capital Signals

Trade receivables increased to ₹1,042.7 crore from ₹939.1 crore, while inventories declined to ₹288.2 crore from ₹366.5 crore. The reduction in inventory levels alongside rising receivables may indicate shifting working capital dynamics, requiring continued monitoring of collection efficiency.