Sri Nachammai Cotton Mills has scheduled its 46th Annual General Meeting for September 25, 2026. The company will hold the meeting at its registered office in Salem at 12:15 pm.

Shareholders holding equity shares of face value ₹10 each as of the cut-off date, September 18, 2026, are eligible to vote. The notice of AGM and annual report for FY26 have been dispatched to members and are available on the company website.

Book Closure Details

The register of members and share transfer books will remain closed from September 19, 2026, to September 25, 2026. Both days are inclusive. Transfers of securities will not be processed during this period.

Remote E-Voting

Members can cast their votes electronically through the Central Depository Services (India) Limited system. Remote e-voting commences on September 19, 2026, at 9:00 am and ends on September 25, 2026, at 5:00 pm. However, e-voting by electronic mode is not allowed beyond 5:00 pm on September 24, 2026.

The facility to attend the AGM via video conference or other audio-visual means is available through the CDSL e-voting system. Members who have already cast their vote via remote e-voting may attend the meeting but cannot vote again. Shri M.R.L. Narasimha has been appointed as the scrutinizer for the voting process.

Sri Nachammai Cotton Mills reported a net loss of ₹14.75 lakh for the quarter ended June 30, 2026 (Q1FY27), a significant improvement from the net loss of ₹506.76 lakh in the preceding quarter (Q4FY26). The company’s revenue from operations stood at ₹1,294.59 lakh in Q1FY27, compared to ₹1,390.92 lakh in the same quarter last year (Q1FY25), which had included a one-time exceptional gain. The narrowing operational loss highlights the impact of cost-control measures, particularly in power consumption, despite persistent challenges in yarn demand and pricing disparities.

The Board of Directors approved the unaudited standalone financial results on August 11, 2026, in compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, Gopalaiyer and Subramanian. The company operates under Ind AS (Indian Accounting Standards) as prescribed under Section 133 of the Companies Act, 2013.

Financial Performance Overview

Revenue from operations declined slightly year-on-year to ₹1,294.59 lakh in Q1FY27, down from ₹1,400.51 lakh in Q1FY25. The decline is attributed to poor demand for yarn and a continued disparity between cotton input prices and yarn selling prices. Consequently, the company operated only one unit for three shifts during the quarter, leading to adjusted depreciation charges. Total expenses were not explicitly itemized in the summary table but resulted in an operating loss before tax of ₹13.27 lakh. The net loss after tax was ₹14.75 lakh, compared to a profit of ₹538.35 lakh in Q1FY25, which was heavily influenced by a non-recurring exceptional item.

Note: Q1FY25 figures before tax exclude exceptional items; after-tax figures include them.

Operational Efficiency and Cost Control

A key driver of the improved bottom line was the reduction in power and fuel expenses, which fell to ₹92.21 lakh in Q1FY27 from ₹143.50 lakh in Q1FY25. This saving is primarily due to the self-consumption of electricity generated from the company’s solar power plant, commissioned during FY25 and FY26. Management stated that various cost-control and efficiency-enhancement measures are being implemented across operations to reduce losses and improve profitability. The company also noted that it is installing an additional 2 MW solar capacity this year to further reduce future power costs.

What the Numbers Show

The comparison between Q1FY27 and Q1FY25 reveals a structural shift in earnings quality. While the headline net result appears worse due to the absence of the ₹6.58 crore exceptional gain in Q1FY25 (arising from the derecognition of redeemable preference shares), the underlying operational loss has narrowed considerably. In Q1FY25, excluding the exceptional item, the company incurred a pre-tax loss of ₹131.93 lakh. The current quarter’s pre-tax loss of ₹13.27 lakh suggests that operational efficiencies, particularly in energy costs, are beginning to offset weak demand dynamics. The drastic cut in power expenses provides a positive margin tailwind, although the company continues to face headwinds from low yarn demand and high raw material costs.