Swaraj Engines Limited has issued a postal ballot notice seeking member approval for the appointment of Sanjay Kshirsagar as Whole Time Director and Chief Executive Officer. The proposal follows his designation as CEO designate in April 2026 to ensure seamless succession from Devjit Sarkar.

Kshirsagar, aged 57, brings over 34 years of experience in manufacturing operations and projects. Prior to this role, he oversaw engine plants at Mahindra & Mahindra, driving significant volume ramp-ups for passenger and commercial vehicles. His expertise includes machine shops, assembly lines, and manufacturing digitization.

The proposed tenure spans three years, effective from September 1, 2026, to August 31, 2029. The remuneration package includes a basic salary of ₹1,69,955 per month, with a scale ranging from ₹1,50,000 to ₹3,00,000 per month. Perquisites are capped at 300% of annual basic salary, covering housing, medical, and transport benefits.

Performance pay is linked to both individual and company performance, not exceeding 175% of the annual basic salary. Additionally, he is eligible for Employee Stock Options (ESOPs) as determined by the Nomination and Remuneration Committee. The total remuneration must comply with limits under Section 197 of the Companies Act, 2013.

Financial context and succession

The appointment coincides with the completion of Devjit Sarkar’s tenure on August 31, 2026. Swaraj Engines reported a net profit after tax of ₹196.40 crore for FY26, with net worth standing at ₹488.92 crore. The company operates in the diesel engine manufacturing sector, having commenced commercial production in 1989.

What the numbers show

The proposed remuneration structure highlights a performance-driven approach, with variable components (performance pay up to 175% of basic) significantly outweighing the fixed basic salary component. This aligns executive incentives with operational outcomes, critical for a capital goods manufacturer focused on volume ramp-ups and efficiency improvements like the 'Engine No Testing' initiative previously driven by Kshirsagar at Mahindra.

Remote e-voting for the resolutions commenced on September 23, 2026, and concludes on October 22, 2026. Members holding shares as of the cut-off date, September 18, 2026, are eligible to vote electronically via NSDL.

Swaraj Engines announced that Mr. Devjit Sarkar will cease to hold office as Director and Whole Time Director effective September 1, 2026. The departure marks the completion of his tenure as approved by shareholders.

The company disclosed the change under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Mr. Sarkar was originally appointed for a period from September 1, 2024, to August 31, 2026. He served in the dual capacity of Director and Whole Time Director & Chief Executive Officer during this term.

Tenure Details

The cessation follows the expiry of the specific timeframe authorized by the company’s shareholders. There is no indication of resignation or removal; the exit is procedural based on the initial appointment terms.

The disclosure was issued on September 1, 2026, and signed by Rajesh K. Kapila, Company Secretary. The filing references SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, for compliance purposes.