SPL Industries Limited , a prominent player in the textile industry, held its 34th Annual General Meeting (AGM) on September 29, where shareholders approved several significant resolutions that could shape the company's future growth trajectory.

Borrowing Limit Maintained

The shareholders reaffirmed their confidence in the company's financial management by approving the maintenance of the borrowing limit at Rs 100 crore under Section 180(1)(c) of the Companies Act, 2013. This decision allows the Board of Directors to borrow funds as needed, providing financial flexibility for the company's operations and expansion plans.

Expansion into Real Estate

In a strategic move to diversify its business portfolio, SPL Industries received shareholder approval to amend its Memorandum of Association, adding real estate as a new business vertical. This expansion allows the company to engage in comprehensive real estate activities, including:

• Acquiring, developing, and constructing properties
• Managing residential and commercial complexes
• Developing IT parks and infrastructure facilities
• Operating in both domestic and international markets

This diversification could open up new revenue streams for the company and potentially reduce its dependence on the textile sector.

Financial Authorizations

Shareholders also approved several financial authorizations, demonstrating their trust in the company's management:

• Investment and loan limits of Rs 250 crore under Section 186 of the Companies Act
• Loan limits of Rs 100 crore under Section 185 of the Companies Act
• Authorization for material related party transactions until the 2026 AGM

Appointment of Secretarial Auditor

M/s. Agarwal S. & Associates, a firm with over 20 years of experience in conducting audits for leading Indian companies, including BSE 100 companies and Central Public Sector Enterprises, was appointed as the Secretarial Auditor for five consecutive years from FY 2025-26 to FY 2029-30.

Voting Results

The resolutions were passed with overwhelming majority, indicating strong shareholder support for the company's strategic decisions:

The strong approval rates across all resolutions reflect the shareholders' confidence in SPL Industries' growth strategy and governance practices.

These decisions, particularly the expansion into real estate and the maintained borrowing capacity, position SPL Industries for potential growth and diversification in the coming years. The company's move to broaden its business scope while maintaining financial prudence could be seen as a balanced approach to long-term value creation for its shareholders.

SPL Industries Limited , a player in the garment manufacturing and trading segments, has released its financial results for the first quarter of fiscal year 2025-26, revealing a significant decline in both revenue and profitability. The company also announced the appointment of a new internal auditor.

Financial Performance

SPL Industries reported a substantial decrease in net sales for Q1 FY2026, which ended on June 30, 2025. The company's net sales stood at ₹1,663.71 lakh, down from ₹4,247.43 lakh in the same quarter of the previous year, marking a significant year-over-year decline.

The company's profitability also took a hit, with net profit for the quarter falling to ₹91.30 lakh, compared to ₹258.37 lakh in the corresponding quarter of the previous year.

Total income for Q1 FY2026 decreased to ₹2,035.56 lakh from ₹4,559.56 lakh year-over-year, indicating a broader contraction in the company's revenue streams.

Key Financial Metrics

The earnings per share (EPS) for the quarter stood at ₹0.31, down from ₹0.89 in the same period last year.

Segment Performance

SPL Industries operates in two main segments: Manufacturing/Processing of Garments and Trading of Garments. For Q1 FY2026:

• Manufacturing/Processing Income: ₹929.08 lakh
• Trading of Garments Income: ₹1,106.48 lakh

Appointment of Internal Auditor

In a corporate governance move, SPL Industries' Board of Directors has appointed M/s. Vatss & Associates as the company's Internal Auditor for the financial year 2025-26. The firm, with its registration number 017573N, brings extensive experience in statutory audit, internal audit, tax advisory, compliance review, and risk management.

The appointment was made during the Board meeting held on August 13, 2025. Vatss & Associates is noted for its dedicated internal audit team equipped with domain knowledge, analytical skills, and familiarity with ERP systems and emerging regulatory requirements.

Management Commentary

While the financial results show a significant downturn, the company has not provided specific commentary on the factors contributing to the decline in revenue and profitability. The appointment of a new internal auditor may signal the company's focus on strengthening its internal controls and financial management processes.

Investors and stakeholders will likely be watching closely to see how SPL Industries addresses the challenges reflected in these quarterly results and what strategies it may implement to improve performance in the coming quarters.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on August 13, 2025. The statutory auditors have also reviewed the results for the quarter ended June 30, 2025.