Lakshmi Mills has issued a postal ballot notice seeking shareholder approval for the re-appointment of its Managing Director through electronic voting. The company has engaged National Securities Depository Limited (NSDL) to facilitate the remote e-voting process for all shareholders.

Postal Ballot Details and Timeline

The postal ballot notice dated February 12, 2026, was dispatched to shareholders whose email addresses are registered with the company, depositories, or registrar and transfer agent as on the cut-off date of February 20, 2026. The company has appointed Sri B. Krishnamoorthi, Practicing Chartered Accountant from Coimbatore, as the scrutinizer to conduct the postal ballot process.

Managing Director Re-appointment Proposal

The special resolution seeks approval for the re-appointment of Sri Sundaram Pathy (DIN: 00013899) as Managing Director for a further period of five years with effect from April 24, 2026. His current tenure expires on April 23, 2026, following his initial appointment approved at the Annual General Meeting held on September 24, 2021.

The Nomination and Remuneration Committee and Audit Committee recommended the re-appointment at their respective meetings held on February 12, 2026. The proposal includes remuneration payment for a period of three years, despite the five-year appointment term.

Proposed Remuneration Structure

The remuneration package for Sri Sundaram Pathy includes multiple components structured to align with company performance and industry standards.

The perquisites include medical reimbursement, leave travel allowance, club fees, and medical insurance. In case of loss or inadequacy of profits, the remuneration (except commission) shall be payable as minimum remuneration in compliance with Schedule V of the Companies Act, 2013.

Director Profile and Experience

Sri Sundaram Pathy, aged 76 years, is a commerce graduate from the University of Madras with over five decades of experience in textile and textile machinery manufacturing industries. He has been associated with the company's board since September 27, 1995, and currently holds 1,13,570 equity shares, representing 16.33% of the paid-up capital.

He serves as Non-Executive Chairman of Lakshmi Engineering and Warehousing Limited and holds directorships in LMW Limited, where he is also a member of the Nomination & Remuneration Committee and Stakeholders Relationship Committee.

Company Financial Performance

The company operates in two reportable business segments: textiles and rental services. The textile segment involves manufacturing and sale of yarn and trading in cloth and garments, while rental services consist of letting out properties.

The company has manufacturing units at Palladam and Kovilpatti with an installed capacity of 1,44,432 ring spindles, and rental services at Lakshmi Mills Urban Centre in Coimbatore.

Voting Process and Results

Shareholders can cast their votes electronically through NSDL's e-voting platform using their demat account credentials or through the company's designated login process. The voting rights are proportional to shareholding as on the cut-off date. Results will be declared within two working days of the e-voting conclusion and will be available on the company's website, NSDL's website, and communicated to BSE Limited where the company's shares are listed.

Lakshmi Mills announced its Q3FY26 quarterly results for the quarter and nine months ended 31.12.2025, alongside several significant corporate developments approved by the Board of Directors at their meeting held on 12.02.2026. The results were submitted under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

The company's financial performance showed mixed results across different time periods. For the quarter ended 31.12.2025, the company demonstrated improved operational metrics compared to the corresponding quarter of the previous year.

For the nine-month period, the company faced revenue challenges with total income declining to Rs 17,817.09 lakhs from Rs 19,813.37 lakhs in the corresponding period of the previous year. The nine-month period showed a net loss of Rs 1,746.89 lakhs compared to a loss of Rs 401.56 lakhs in the previous year.

Segment-wise Performance

The company operates through two primary business segments - Textiles and Rental Services. The segment-wise revenue breakdown for Q3FY26 showed:

The Rental Services segment demonstrated consistent profitability with segment results of Rs 509.66 lakhs for Q3FY26, while the Textiles segment reported a profit of Rs 38.70 lakhs compared to a loss of Rs 602.87 lakhs in the corresponding quarter of the previous year.

Major Corporate Approvals

The Board approved several significant decisions that will shape the company's future operations and leadership structure.

Rental Services Project Expansion

The Board approved the third phase of the Rental Services Project with an investment of Rs 91.00 Cr. This expansion aligns with the company's focus on strengthening its rental services segment, which has shown consistent profitability.

Leadership Re-appointments

Two key re-appointments were approved by the Board:

Sri S. Pathy brings over 50 years of experience in the textile industry to his continued leadership role. The re-appointment is subject to shareholder approval.

Regulatory Compliance and Auditor Review

The unaudited financial results were reviewed and recommended by the Audit Committee and approved by the Board of Directors. The results have been subjected to limited review by the company's statutory auditors, M/s. Subbachar & Srinivasan, Chartered Accountants, who provided an unmodified opinion on the financial statements.

The company's Chief Financial Officer, A. Doraiswamy, declared that the statutory auditors have submitted an unqualified opinion on the unaudited financial results. The implementation of New Labour Codes effective from 21st November 2025 resulted in a past period employee benefit liability of Rs 22.68 lakhs, which was reported as an exceptional item for the quarter.

Operational Highlights

The company's operational performance showed improvement in key areas during Q3FY26. Employee benefits expense increased to Rs 1,097.68 lakhs from Rs 966.28 lakhs in the corresponding quarter, reflecting the company's investment in human resources. Finance costs decreased significantly to Rs 238.02 lakhs from Rs 391.31 lakhs, indicating improved financial management.

The Board meeting commenced at 12.00 PM and concluded at 2.15 PM on 12.02.2026, with all decisions being duly approved in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.