Sri Nachammai Cotton Mills Limited has submitted its quarterly compliance certificate to BSE Limited for the quarter ended 31st March, 2026. The submission fulfills the company's regulatory obligations under SEBI (Depositories and Participants) Regulations, 2018.

Regulatory Compliance Submission

The company submitted the certificate dated 03.04.2026 on 15.04.2026, which was received from Cameo Corporate Services Limited, serving as the Registrar and Share Transfer Agent. The submission was made pursuant to Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018.

Dematerialisation Process Confirmation

Cameo Corporate Services Limited confirmed that all securities received from depository participants for dematerialisation during Q4 FY26 were properly processed. The registrar verified that securities comprised in the certificates have been listed on stock exchanges where the company's earlier issued securities are listed.

The compliance certificate confirms several key processes:

• Securities received for dematerialisation were confirmed to depositories
• Security certificates were mutilated and cancelled after due verification
• Depository names were substituted in the register of members
• All processes completed within stipulated time limits

Company Information

Sri Nachammai Cotton Mills Limited operates from its registered office at Door No. 181, 'Vasantham', 4th Cross Street, New Fairlands, Salem - 636 016. CS M. Harish serves as the Company Secretary and Compliance Officer, overseeing regulatory submissions and compliance matters.

Regulatory Framework

The submission under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 ensures transparency in the dematerialisation process and maintains investor confidence in the securities market. This quarterly compliance requirement helps monitor the proper handling of securities conversion from physical to electronic form.

Sri Nachammai Cotton Mills Limited announced its unaudited financial results for Q3FY26 ended December 31, 2025, following board approval at a meeting held on February 12, 2026. The textile manufacturer reported continued operational challenges despite implementing cost-saving measures through renewable energy adoption.

Financial Performance Overview

The company's quarterly performance showed deterioration across key metrics, reflecting ongoing challenges in the yarn manufacturing sector.

Revenue from operations declined to ₹1,674.64 lakhs compared to ₹1,723.54 lakhs in the corresponding quarter of the previous year. Other income also reduced significantly to ₹4.89 lakhs from ₹26.63 lakhs.

Cost Management and Solar Power Benefits

Despite operational challenges, the company achieved notable cost reductions through strategic initiatives:

The significant reduction in power and fuel costs is primarily attributable to the captive use of electricity generated from the company's 4 MW solar power plant commissioned during FY2024-25.

Nine-Month Performance Highlights

For the nine-month period ended December 31, 2025, the company reported contrasting results:

The turnaround to profitability was largely due to an exceptional item of ₹658.88 lakhs related to preference share modification.

Preference Share Restructuring Impact

The exceptional item relates to the modification of redeemable preference shares originally issued to promoters in April 2012 for ₹15 crores with a 13-year maturity period. Following approval from preference shareholders in September and December 2024, the redemption period was extended by an additional 7 years. This modification resulted in derecognition of the existing liability and recognition of a new financial liability at present value of ₹8.41 crores, creating a one-time income of ₹6.58 crores.

Operational Strategy and Outlook

The textile manufacturer continues facing pressure from poor yarn demand and pricing disparities between cotton and yarn prices. Consequently, the company is currently operating only one unit for three shifts, with depreciation provided accordingly. The company continues implementing various cost-control and efficiency-enhancement measures across operations to reduce operational losses and improve efficiency.

Board Meeting and Audit Details

The Board of Directors approved these results at their meeting held on February 12, 2026, which commenced at 11:15 AM and concluded by 1:00 PM. The statutory auditors completed their limited review of the financial statements, with Gopalaiyer and Subramanian Chartered Accountants providing the independent auditor's review report.