Systematic Industries Limited has accepted the resignation of Mr. Bhagwan Das as an Independent Director, effective June 22, 2026. The resignation was submitted on personal grounds, and the director confirmed there are no other material reasons for his departure.

The company informed BSE Limited regarding the change in its board composition pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Mr. Bhagwan Das has been relieved of his duties effective from the stated date.

Resignation Details

The disclosure was made in compliance with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The director confirmed that his decision was driven by personal and unavoidable circumstances.

Mr. Bhagwan Das stated in his resignation letter that he holds no other directorships in listed entities. The company has acknowledged the receipt of the resignation and will proceed with the necessary filings with the Registrar of Companies.

Systematic Industries Limited achieved a net debt-free status in FY26 while recording a 24% year-on-year revenue increase to ₹5,563 million, bolstered by its strategic transition into optical fiber and power transmission infrastructure. The company’s Profit After Tax (PAT) stood at ₹205 million, with EBITDA reaching ₹405 million, reflecting a CAGR of 20% in revenue, 40% in EBITDA, and 49% in PAT from FY23 to FY26. This financial performance underscores the firm's successful pivot from a legacy steel wire manufacturer to a fully integrated player in India's digital and power transmission sectors.

Financial Performance and Strategic Shift

Management emphasized that the FY26 revenue mix remained approximately 97% legacy steel wire, but the strategic focus is now squarely on high-growth "New Age" segments including Optical Ground Wire (OPGW), Optical Fiber Cables (OFC), and Aluminum Clad Steel (ACS) wire. These new verticals are expected to drive double-digit profitability and significantly contribute to the bottom line in FY27 and FY28. The company has committed to maintaining financial discipline to preserve its net debt-free status, ensuring flexibility for future capital expansions.

Landmark Orders and EPC Strategy

systematic industries secured its first EPC contract from Power Grid of India for the end-to-end execution of OPGW for the Agra-Kumher section. Additionally, the company received a landmark order worth over ₹100 million from Indian Railways for RDSO-approved 24/48-fibre armoured OFC. Looking ahead, the enterprise is eligible to bid for upcoming OPGW tenders estimated at ₹10,000 million in the coming year. Management clarified that EPC services will be strictly limited to end-to-end OPGW projects where the company's manufactured product constitutes 60-70% of the project cost, avoiding a transition into a general EPC company.

Operational Infrastructure and Risk Factors

The company operates four manufacturing units with a combined capacity exceeding 1 lakh metric tons, with legacy plants currently operating at 75% utilization. High-end and import-substitute products constitute 20% of steel wire volume, with a target to expand this share to 30-35%. Exports contribute 8-10% of total revenue across over 30 countries, with a strategic target to reach 15%. However, the company faces risks including raw material price volatility due to dollar appreciation and supply chain constraints for optical fiber preforms. A one-time provision for gratuity and leave provisions in the FY26 balance sheet also temporarily impacted short-term profit growth.

Action Items and Targets