Sonal Adhesives Limited concluded its 35th Annual General Meeting on September 24, 2026, with shareholders approving the audited financial statements for the fiscal year ended March 31, 2026. The meeting was conducted entirely through video conferencing, reflecting continued adoption of digital governance practices.

The board’s recommendations regarding director reappointments were also ratified by the members. This includes the reappointment of Sandeep Arora as Managing Director and the replacement of Mridu Sandeep Arora, who retired by rotation but was eligible for reappointment. Additionally, shareholders ratified the remuneration of the cost auditor for FY27.

Meeting proceedings and governance

The meeting commenced at 4:11 pm and concluded at 4:25 pm. Mridu Arora, Chairperson of the company, occupied the chair and called the meeting to order after confirming the requisite quorum was present. Sandeep Arora, Managing Director, informed members that remote e-voting facilities were available from September 21 to September 23, 2026. Electronic voting was also accessible during the meeting for those who did not participate in remote voting.

Prashant Diwan, a practicing company secretary, served as the scrutinizer for the e-voting process. The results of the voting, along with the scrutinizer's report, are scheduled to be published on the company’s website and the CDSL e-voting portal within two working days of the meeting's conclusion.

Key resolutions passed

The following ordinary and special business items were put forth for shareholder approval:

• Adoption of audited financial statements and reports of the Board of Directors and Auditors for FY26.
• Appointment of a director in place of Mridu Sandeep Arora (DIN: 07260461), who retires by rotation.
• Reappointment of Sandeep Arora as Managing Director.
• Ratification of the remuneration payable to the Cost Auditor for FY27.

All resolutions set out in the notice calling the 35th AGM were carried out during the meeting. The company confirmed that the results would be made available publicly as per regulatory requirements.

Voting details and participation

Per Regulation 44(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company disclosed detailed voting results. Out of 4,536 shareholders on record, 31 participated in the meeting via video conferencing (5 promoters and 26 public shareholders). A total of 25 folios voted across all resolutions.

The promoter and promoter group held 38,00,900 shares and voted 100% in favor of all resolutions. Public non-institutional shareholders held 22,60,100 shares, with 78,003 votes polled. Across all four items, the total votes polled stood at 38,78,903, representing 64.00% of outstanding shares. Only 1 vote was cast against any resolution, resulting in a 99.99% approval rate for each item.

Sonal Adhesives reported a 14.6% year-on-year increase in total revenue for FY26, reaching ₹12,827.5 lakh, while net profit declined 22.3% to ₹137.2 lakh. The company has scheduled its 35th Annual General Meeting for September 24, 2026.

The Khopoli-based adhesive manufacturer saw significant growth in export turnover, which more than doubled to ₹3,396.6 lakh from ₹1,657.1 lakh in the previous fiscal year. However, rising raw material prices and increased finance costs pressured operating margins.

Financial Performance

Total income from operations stood at ₹12,644.4 lakh compared to ₹11,033.3 lakh in FY25. Other income contributed ₹183.1 lakh, primarily driven by exchange fluctuation gains of ₹158.4 lakh.

Profit before interest and tax fell to ₹166.1 lakh from ₹242.5 lakh, impacted by an exceptional item of ₹17.1 lakh related to past service costs for gratuity. Finance costs rose 25.7% to ₹162.3 lakh, reflecting higher borrowing levels.

What the Numbers Show

Export revenue accounted for approximately 26.9% of total operating revenue in FY26, up from 15% in the prior year. This shift highlights the company's growing reliance on international markets to offset domestic margin pressures. Despite the revenue growth, the net profit margin contracted to 1.08% from 1.60%, indicating that cost inflation outpaced pricing power during the period.

Balance Sheet Signals

Borrowings increased significantly, with total debt rising to ₹2,177.7 lakh from ₹1,110.6 lakh. This led to a debt-equity ratio expansion to 1.98 from 1.12. The company raised cash credit limits and took over a term loan facility to meet working capital requirements. Cash and cash equivalents remained modest at ₹9.4 lakh.

Corporate Actions

The Board recommends the re-appointment of Mr. Sandeep Arora as Managing Director for three years, effective June 1, 2026, with a remuneration of ₹3 lakh per month. No dividend was recommended for the year to conserve reserves. The share transfer books will remain closed from September 21 to September 23, 2026.