Systematic Industries Limited Approves Employee Stock Option Plan 2026 for 6,00,000 Shares

Systematic Industries Limited announced that its board of directors has approved the Employee Stock Option Plan 2026 during a meeting held on January 9, 2026. The comprehensive plan aims to grant stock options to eligible employees of the company, subject to mandatory shareholder approval through postal ballot and electronic voting procedures.

Key Features of ESOP Plan 2026

The Employee Stock Option Plan 2026 encompasses several significant features designed to align employee interests with company performance. The plan covers a total of 6,00,000 equity shares and incorporates both corporate and individual performance metrics for employee selection and option grants.

Parameter:	Details
Total Shares Covered:	6,00,000 equity shares
Face Value per Share:	₹10.00
Exercise Period:	18 months from vesting date
Maximum Annual Grant:	Cannot exceed 1% of issued capital

Vesting Schedule and Timeline

The ESOP plan implements a staggered vesting approach spread across four years, ensuring long-term employee retention and performance alignment. The vesting structure provides gradual ownership transfer based on continued employment and performance criteria.

Vesting Period:	Percentage of Options
12 months from grant:	20%
24 months from grant:	20%
36 months from grant:	30%
48 months from grant:	30%

Pricing and Exercise Provisions

The Compensation Committee will determine the exercise price for the options, with the fundamental requirement that the exercise price cannot fall below the face value of ₹10.00 per share. Each option, when exercised, will result in the issuance of one equity share of face value ₹10.00. The plan allows for a maximum exercise period of 18 months from the date of vesting, with specific provisions for cases involving resignation, termination, or death of employees.

Regulatory Compliance and Approval Process

The ESOP Plan 2026 complies with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, requiring shareholder approval under Regulation 6(1) & 6(3)(C). The board has approved the notice for seeking member approval through postal ballot using electronic voting methods. The Compensation Committee will administer the plan and may vary terms subject to applicable laws and plan provisions. The board meeting commenced at 5:00 PM and concluded at 6:00 PM IST, with Managing Director Siddharth Rajendra Agarwal signing the approval documents.

Systematic Industries Limited (BSE: 544541), India's third-largest steel wire and specialty cable manufacturer, has announced its unaudited financial results for the half-year ended September 30, 2025, showcasing robust growth and strategic developments. The company, which recently completed its initial public offering (IPO), has reported significant improvements in its financial performance and made key appointments.

Financial Highlights

The company's financial results for H1 FY2026 reveal impressive growth:

Metric	H1 FY2026	H1 FY2025	YoY Change
Total Income	26,211.15	16,562.46	58.3% ↑
Profit	928.48	679.82	36.6% ↑
Basic & Diluted EPS	5.52	4.05	36.3% ↑

All financial figures in lacs of Indian Rupees (Rs)

Systematic Industries achieved a 58.3% total income growth and a 36.6% profit growth in H1FY26. The company's total income reached Rs 26,211.15 lacs, while total expenses were Rs 24,577.90 lacs for the period.

Strategic Diversification and Growth

The company's growth was driven by diversification into high-growth telecommunication products, including optical fiber cables and OPGW cables under the DuraFiber brand. Systematic Industries has secured strategic approvals from BSNL and RDSO, and obtained L2 position in a PGCIL order.

Future Outlook

Systematic Industries aims for 10x growth by 2031 while maintaining its debt-free status. The company projects a 25-30% annual growth rate.

Balance Sheet Strengthening

Systematic Industries has significantly improved its liquidity position:

Cash and cash equivalents increased to Rs 11,988.49 lacs from Rs 460.85 lacs in the previous period.
The company's total assets grew to Rs 33,432.07 lacs as of September 30, 2025, compared to Rs 20,016.57 lacs on March 31, 2025.

Initial Public Offering (IPO)

During the period, Systematic Industries successfully completed its IPO:

Issued 5,528,000 equity shares at Rs 195 each.
Total funds raised: Rs 10,779.60 lacs.
Utilization of IPO proceeds:
- Repayment of borrowings: Rs 9,500.00 lacs
- Issue-related expenses: Rs 850.61 lacs
- General corporate purposes: Rs 428.99 lacs

The company has utilized the IPO funds for debt repayment, contributing to its debt-free status.

Corporate Governance

The Board of Directors has made a key appointment to enhance corporate governance:

M/s KDA Associates, Practicing Company Secretaries, appointed as Secretarial Auditors for FY 2025-26.

Operational Performance

The company's revenue from operations increased significantly to Rs 25,368.10 lacs in H1 FY2026 from Rs 16,467.97 lacs in H1 FY2025, indicating strong market demand for the company's products or services.

Conclusion

Systematic Industries' improved financial position, successful IPO, and strategic diversification have strengthened its market position. The repayment of borrowings using IPO proceeds has contributed to the company's debt-free status, potentially reducing finance costs in future periods. With its ambitious growth targets and expansion into high-growth telecommunication products, the company's performance in the coming quarters will be of significant interest to investors and stakeholders.