Vishal Fabrics Limited concluded its 41st Annual General Meeting (AGM) on Tuesday, August 11, 2026, approving key governance resolutions including the reappointment of directors and the adoption of financial statements for the fiscal year ended March 31, 2026. The meeting, conducted through video conferencing and other audio-visual means (VC/OAVM), commenced at 11:00 AM IST and concluded at 11:45 AM IST, ensuring compliance with Ministry of Corporate Affairs (MCA) circulars and SEBI regulations.

The proceedings were chaired by Brijmohan D. Chiripal, Managing Director, who presented an overview of the company’s financial performance and future plans. Dharmesh Dattani, Chief Financial Officer, provided detailed insights into the financial results for FY26. The Board of Directors appointed M/s. Chirag Shah & Associates as the scrutinizer to supervise the e-voting process. As per Regulation 30 Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has submitted the proceedings to the stock exchanges.

Shareholders transacted both ordinary and special business items through remote e-voting. The key resolutions passed during the meeting are outlined below:

The attendance included directors Brijmohan D. Chiripal, Ravindrakumar Bajaj, Roma Sanghavi, Susanta Kumar Panda, and Ram Krishna Dash. Other participants included Company Secretary Dilip Nikhare and Secretarial Auditors M/s. Chirag Shah & Associates. Dilip Nikhare welcomed members and briefed them on general instructions and e-voting procedures before declaring the quorum present.

Governance and Compliance

The meeting adhered strictly to the Companies Act, 2013, and applicable SEBI guidelines. Since there were no qualifications, observations, or comments in the Auditor’s Report on the Financial Statements for the year ended March 31, 2026, the report was not read out in full but was taken as noted. Members were given a fair opportunity to register as speakers and ask questions, which were adequately answered by management.

The combined results of e-voting and voting during the AGM are scheduled to be announced separately, in accordance with Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These results will be available on the company’s website and submitted to the stock exchanges for record-keeping purposes.

Vishal Fabrics Limited reported a consolidated net profit of ₹7.15 crore for the quarter ended June 30, 2026, marking a 21.9% decline from ₹9.16 crore in the corresponding period of FY25. The Ahmedabad-based textile manufacturer saw revenue from operations drop 4.5% year-on-year to ₹379.09 crore, reflecting softer demand and higher input costs that squeezed operating margins during the initial quarter of FY26.

The Board of Directors approved the unaudited standalone and consolidated financial results on August 06, 2026, following a meeting held at Shanti Corporate House in Ahmedabad. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors S V J K and Associates, Chartered Accountants, pursuant to Regulations 33 and 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

Standalone net profit stood at ₹7.05 crore, down 12.8% from ₹8.08 crore in Q1FY25. Consolidated earnings per share (EPS) were ₹0.29, compared to ₹0.44 in the prior year period. Standalone basic EPS was ₹0.28, down from ₹0.39.

Cost of materials consumed rose to ₹34,025.10 lakh from ₹35,874.63 lakh in the standalone books, though this was partially offset by a reduction in inventory changes. Finance costs increased to ₹999.00 lakh from ₹969.76 lakh, adding pressure on the bottom line. Other income dropped significantly to ₹8.81 lakh from ₹1.47 lakh in the prior year, though it remained negligible relative to total income.

What the Numbers Show

The divergence between revenue decline and expense management highlights operational challenges. While total expenses decreased slightly in absolute terms, the cost structure remained rigid relative to sales volume. The share in profit from associates—Chiripal Textile Mills Private Limited, Nandan Industries Private Limited, and Quality Exim Private Limited—contributed ₹10.93 lakh to consolidated profits, down sharply from ₹108.04 lakh in Q1FY25. This nearly 90% drop in associate contributions significantly impacted the consolidated bottom line, suggesting weaker performance across the group’s extended network.

Regulatory and Corporate Updates

The company is currently evaluating the financial implications of the New Labour Codes, which became effective on November 21, 2025. As per disclosures, the impact on employee benefit obligations is not reasonably determinable at this stage, and no adjustments have been made in the current financial results. Additionally, Vishal Fabrics converted 5,00,00,000 compulsorily convertible equity warrants into equity shares during FY25-26 upon receipt of the balance 75% issue price, increasing paid-up capital to ₹12,380.50 lakh.