Storage Technologies & Automation reported a consolidated net loss of ₹32.38 crore for the financial year ended March 31, 2026, reversing a profit of ₹35.51 crore in the previous year. The company scheduled its 16th Annual General Meeting (AGM) for September 26, 2026, to approve these results and several board appointments.

The decline in profitability was driven by a 15.4% year-on-year drop in consolidated revenue from operations, which fell to ₹849.70 crore from ₹1,003.79 crore in FY25. Management attributed the slowdown to order cancellations by a key corporate client, project deferrals, and geopolitical disruptions affecting export shipments to GCC markets.

Financial Performance

Despite the revenue contraction, the company maintained gross margin durability at 36.51%, compared to 37.28% in FY25. However, operating overheads did not scale down proportionately with lower billings, leading to an EBITDA loss of ₹6.32 crore for the full year. The second half of FY26 was particularly challenging, with H2 EBITDA turning negative at ₹(14.43) million against a positive ₹53.15 million in H2 FY25.

Balance Sheet & Cash Flow

The company focused on capital discipline during the downturn. Net cash flow from operating activities rebounded to ₹84.59 crore, fully covering capital investments of ₹41.49 crore. This operational cash flow allowed the company to reduce total debt by 19.38% to ₹14.30 crore. Long-term borrowings were slashed by 73.09% to just ₹34.07 lakh, bringing the debt-to-equity ratio down to 0.36x on net worth.

What the Numbers Show

A significant divergence exists between the company's operational cash generation and its accrual-based profitability. While the company reported a net loss of ₹32.38 crore, it generated ₹84.59 crore in operating cash flow. This positive cash conversion was primarily driven by a reduction in trade receivables by ₹11.19 crore to ₹32.09 crore, indicating aggressive working capital recovery efforts that offset the impact of deferred project billings on the income statement.

Board Appointments & Governance

The AGM will seek shareholder approval for the reappointment of several directors and key managerial personnel for terms starting November 2, 2026. Key appointments include:

• Hanif Abdul Gaffar Khatri as Executive Director and Chairman
• Mohammad Arif Abdul Gaffar Dor as Managing Director
• Nuumaan Khasim as Whole-Time Director and CFO
• Afzal Hussain as Whole-Time Director and CEO
• Syed Azeem as Whole-Time Director and COO

Additionally, the board proposes the appointment of three new independent directors: Ms. Bhagya M.G., Ms. A. Harsha, and Mr. Mizar Udaya Bhandary, each for a three-year term.

Storage Technologies & Automation Storage Technologies & Automation appointed Syed Azeem as chief executive officer and Sk Samim Riaz as chief financial officer. The appointments take effect on November 2, 2026.

The board approved the management changes in a meeting held on September 1, 2026. The company also recommended the reappointment of several directors at its ensuing annual general meeting.

Key Management Appointments

Syed Azeem will serve as CEO for a two-year term ending November 1, 2028. He is also being reappointed as a whole-time director for a three-year term from September 26, 2026, to September 25, 2029. Azeem holds 7,20,000 equity shares in the company.

Sk Samim Riaz joins as CFO effective November 2, 2026. Riaz brings over 22 years of experience in financial management, treasury, and working capital management. He has managed the finance function at the company since April 2017.

Board Reappointments

The board recommended the reappointment of the following directors liable to retire by rotation:

• Syed Azeem
• Hanif Abdul Gaffar Khatri

Hanif Abdul Gaffar Khatri is also being reappointed as executive director and chairman for a two-year term from September 26, 2026, to September 25, 2028.

Mohammad Arif Abdul Gaffar Dor is being reappointed as managing director for a two-year term from November 2, 2026, to November 1, 2028. He holds 13,50,000 equity shares.

New Independent Directors

The board recommended the appointment of three non-executive independent directors for their first three-year terms commencing September 26, 2026:

• Bhagya M.G. (Non-executive Independent Woman Director)
• A. Harsha (Non-executive Independent Woman Director)
• Mizar Udaya Bhandary (Non-executive Independent Director)

Other Whole-Time Directors

The following individuals are being reappointed as whole-time directors for a three-year term from September 26, 2026, to September 25, 2029:

• Khasim Sait (holds 9,00,000 shares)
• Numaan Khasim (holds 5,40,000 shares)
• Afzal Hussain (holds 7,20,000 shares)

Khasim Sait is the father of Afzal Hussain and Numaan Khasim. Mohammad Arif Abdul Gaffar Dor is the brother of Hanif Abdul Gaffar Khatri.

Auditors

The board reappointed ABM & Associates as secretarial auditor for FY27. It also approved M/s MUV & Co as internal auditors for the same fiscal year.