Shankara Building Products Limited (SBPL) has announced a significant corporate restructuring, with its demerger scheme involving Shankara Buildpro Limited taking effect on September 9, 2025. This strategic move marks a pivotal moment for both entities and their shareholders.

Demerger Details

The demerger scheme, which was formally filed with the Registrar of Companies, Karnataka on September 9, 2025, has an appointed date of April 1, 2024. Under the terms of the arrangement:

• Shankara Building Products Limited serves as the demerged company
• Shankara Buildpro Limited is designated as the resulting company

This corporate action is expected to streamline operations and potentially unlock value for shareholders of both entities.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, SBPL has duly informed the stock exchanges—BSE Limited and the National Stock Exchange of India Limited—about the effective date of the scheme. The company's shares are listed under the security code 540425 on BSE and the symbol SHANKARA on NSE.

Next Steps for Shareholders

A crucial aspect of this demerger for investors is the pending announcement of the record date. This date will determine which shareholders of Shankara Building Products Limited are eligible to receive equity shares in Shankara Buildpro Limited. The company has stated that this information will be communicated in due course.

Management Statement

Ereena Vikram, Company Secretary & Compliance Officer of Shankara Building Products Limited, signed off on the regulatory filing, emphasizing the company's commitment to keeping shareholders and the market informed of these significant corporate developments.

Investors and market watchers will be keenly awaiting further details on the share allocation ratio. As the process unfolds, it will be important to monitor how this restructuring impacts the operational efficiency and market positioning of both Shankara Building Products and the newly formed Shankara Buildpro Limited.

The completion of this demerger represents a new chapter for Shankara Building Products Limited, potentially setting the stage for focused growth strategies in their respective business segments.

Shankara Building Products Limited has reported robust financial results for the first quarter, showcasing significant growth in steel volumes and improved profitability.

Key Highlights

• Steel volume reached 2.38 lakh tons, marking a 35% year-on-year growth
• Revenue grew by 27% compared to the same quarter last year
• EBITDA margins improved to 3.58% from 3.20% in the previous quarter
• Net profit surged 102% year-on-year to Rs. 32.00 crores

Segment Performance

The company witnessed strong performance across its steel segments:

• Flat products: 65% growth
• Roofing: 35% growth
• Pipes and tubes: 32% growth

However, the non-steel business faced headwinds, recording only a 5% growth year-on-year.

Operational Developments

Shankara maintained disciplined working capital management at 29 days and opened two new fulfillment centers in Jabalpur and Gannavaram, strengthening its presence in Central India and Andhra Pradesh.

Management Commentary

Dhananjay Mirlay Srinivas, Executive Director, stated, "We are happy to report that we have continued a robust volume growth in the steel business. This quarter, we achieved a significant milestone by delivering 2.38 lakh tons in steel volume. This represents a 35% year-on-year growth and stands at our highest ever Q1 volume, setting a strong tone for the fiscal year."

Financial Performance

Market Position and Retail Performance

Shankara remains the clear market leader in South India across both retail and non-retail verticals. The company's same-store sales growth (SSSG) reached 22% in Q1, up from 14% in the previous fiscal year, indicating healthy retail growth.

Outlook

Despite challenging market conditions, including an early onset of monsoons and slower-than-anticipated recovery in infrastructure and construction activities, Shankara recorded double-digit growth in both volume and value.

The management remains confident about achieving the target of 1 million tons for the current fiscal year. The company is working towards achieving targeted non-steel numbers in the coming quarters.

Demerger Update

Regarding the ongoing demerger process, the company anticipates receiving the final NCLT order on the scheme of demerger by the end of August. Shankara expects to conclude the demerger process in Q3 of the current fiscal year.

Shankara Building Products continues to position itself as a unique marketplace in the building material industry, with a strong presence in steel and a growing non-steel business. The company operates 126 fulfillment centers, including 93 operational stores, spread across 1.3 million square feet in 10 states and 1 union territory of India.