Bharat Seats Limited has issued a postal ballot notice seeking shareholder approval for enhanced related party transactions with Maruti Suzuki India Limited. The notice, dated February 03, 2026, proposes to increase the transaction limit from Rs 1300 crores to Rs 2400 crores per financial year.

Enhanced Transaction Limits

The company seeks approval for material related party transactions covering various business activities with Maruti Suzuki India Limited. The proposed resolution aims to modify the earlier approval granted at the Annual General Meeting held on July 9, 2025.

Rationale for Enhancement

The transaction limit enhancement stems from the amalgamation of Suzuki Motor Gujarat Private Limited with Maruti Suzuki India Limited, effective December 01, 2025. Previously, Bharat Seats had separate transaction approvals for both entities - Rs 1300 crores for MSIL and Rs 500 crores for Suzuki Motor Gujarat Private Limited.

The Audit Committee and Board of Directors approved this enhancement in their respective meetings held on February 3, 2026, recommending it to shareholders for approval.

E-Voting Schedule

The postal ballot process will be conducted entirely through electronic voting, with notices sent only to shareholders whose email addresses are registered with the company or depositories.

Transaction History and Performance

Bharat Seats' existing relationship with Maruti Suzuki demonstrates substantial business volumes. For FY 2024-25, actual transactions totaled Rs 88,258.08 lakhs, while nine months ended December 31, 2025, recorded Rs 85,267.54 lakhs.

Regulatory Compliance

The proposed transactions represent 186.22% of Bharat Seats' annual consolidated turnover for the immediately preceding financial year, qualifying as material related party transactions under SEBI regulations. Maruti Suzuki India Limited, holding 14.81% equity in Bharat Seats, is classified as a promoter entity.

The company has appointed Mr. R.S. Bhatia and Mr. Hardev Singh as scrutinizers to ensure fair and transparent conduct of the postal ballot process. All transactions will be conducted at arm's length basis and in the ordinary course of business, verified by independent third-party transfer pricing consultants.

Bharat Seats Limited announced its unaudited financial results for the quarter ended December 31, 2025, demonstrating robust growth across key financial metrics. The company's Board of Directors approved the results at their meeting held on February 03, 2026, and subsequently published them in newspapers on February 04, 2026, in compliance with regulatory requirements.

Strong Financial Performance in Q3FY26

The company delivered exceptional top-line growth during the quarter, with revenue from operations reaching ₹491.01 crores compared to ₹306.39 crores in the corresponding quarter of the previous year. Net profit for the quarter stood at ₹99.00 crores against ₹75.93 crores in Q3FY25, representing substantial business expansion and enhanced market presence.

Nine-Month Performance Shows Consistent Growth

For the nine months ended December 31, 2025, the company maintained its growth trajectory with revenue from operations of ₹1,376.67 crores compared to ₹895.91 crores in the corresponding period of the previous year. Net profit for the nine-month period stood at ₹289.78 crores against ₹213.12 crores in the previous year.

Regulatory Compliance and Publication

Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the company submitted copies of its published financial results to BSE Limited and National Stock Exchange of India Limited on February 04, 2026. The results were published in Financial Express (English newspaper) and Jansatta (Hindi newspaper), ensuring compliance with disclosure requirements.

Board Approves Material Related Party Transaction

The Board of Directors considered and approved a Notice of Postal Ballot seeking shareholders' approval for enhanced limits of material Related Party Transactions with Maruti Suzuki India Limited. The postal ballot notice will be dispatched to company members shortly.

Impact of New Labour Codes

The company recognized an exceptional item of ₹137.37 lacs in Q3FY26 due to the implementation of India's New Labour Codes effective November 21, 2025. This one-time impact relates to revised employee benefit computations including gratuity and compensated absences.