Damodar Industries Limited has announced its unaudited financial results for the third quarter ended December 31, 2025, revealing mixed performance with quarterly challenges offset by strong nine-month results. The Mumbai-based textile company, engaged in spinning, fancy roving, and weaving operations, reported these results following a board meeting held on January 16, 2026.

Board Meeting and Corporate Developments

The board of directors meeting commenced at 2:30 PM and concluded at 5:30 PM on January 16, 2026. During the meeting, directors approved the unaudited financial results for the quarter and nine months ended December 31, 2025, along with the limited review report. The board also noted the resignation of Independent Director Mr. Pankaj Srivastava (DIN: 06716582).

Quarterly Financial Performance

The company's Q3FY26 performance showed a decline compared to the same period last year. Key financial metrics for the quarter demonstrate the challenging operating environment faced by the textile manufacturer.

The revenue decline was primarily attributed to reduced sales activity, while other income also decreased significantly to ₹97.62 lakhs from ₹307.31 lakhs in the previous year quarter.

Nine-Month Performance Analysis

Despite quarterly challenges, the company's nine-month performance showed remarkable improvement, particularly in profitability metrics.

The nine-month results demonstrate the company's ability to generate substantial profits despite revenue pressures, with net profit increasing by over 400% compared to the previous year.

Operational Expenses and Cost Structure

The company's expense management during Q3FY26 reflected the impact of lower business volumes. Total expenses decreased to ₹9,274.00 lakhs from ₹12,086.86 lakhs in Q3FY24. Key expense components included raw material consumed at ₹5,349.28 lakhs, goods traded at ₹2,021.06 lakhs, finance costs at ₹478.22 lakhs, and employee costs at ₹557.67 lakhs.

Company Profile and Operations

Damodar Industries maintains its registered office at Madhu Corporate Park, Worli, Mumbai, and operates manufacturing facilities at MIDC Amravati in Maharashtra. The company specializes in spinning, fancy roving, and weaving operations within the textile sector. The financial results were reviewed by the audit committee and approved by the board of directors, with limited review conducted by statutory auditors.

Damodar Industries Limited has issued a postal ballot notice dated November 28, 2025, seeking shareholder approval for four special resolutions through remote e-voting. The textile company has outlined key governance decisions requiring member consent under regulatory compliance.

Key Resolutions for Shareholder Approval

The postal ballot encompasses four special resolutions addressing executive compensation and board composition:

Executive Remuneration Details

The company has proposed revised compensation structures for its key executives:

Managing Director - Mr. Aman Arun Biyani:

• Base salary: ₹7,50,000.00 per month with annual increment of ₹25,000.00
• Annual incentive: Performance-based payout up to 50.00% of base salary
• Comprehensive benefits including medical coverage, provident fund, and gratuity

Director - Mr. Aditya A Biyani:

• Base salary: ₹7,00,000.00 per month with annual increment of ₹25,000.00
• Annual incentive: Performance-based payout up to 50.00% of base salary
• Similar benefit structure as Managing Director

Chairman and Whole-time Director - Mr. Arunkumar Biyani:

• Base salary: ₹8,00,000.00 per month with annual increment of ₹25,000.00
• Re-appointment term: April 1, 2026 to March 31, 2029
• Annual incentive: Performance-based payout up to 50.00% of base salary

E-Voting Process and Timeline

The company has implemented a comprehensive e-voting mechanism in compliance with regulatory requirements:

Shareholders can access the e-voting facility through multiple platforms including NSDL, CDSL, and MUFG Intime India Private Limited (formerly Link Intime India Private Limited). The notice has been distributed electronically to members whose email addresses are registered with the company or depositories.

Regulatory Compliance Framework

The postal ballot notice complies with multiple regulatory frameworks including Sections 108 and 110 of the Companies Act 2013, SEBI Listing Regulations, and various MCA circulars. The company has engaged MUFG Intime India Private Limited as the registrar and share transfer agent to facilitate the remote voting process.

The resolutions address critical governance aspects including executive compensation alignment with industry standards and board composition requirements. Mr. Arunkumar Biyani's re-appointment specifically addresses SEBI Regulation 17(1A) regarding directors attaining 70 years of age during their tenure.

Board Recommendations and Stakeholder Impact

The Board of Directors has recommended all four special resolutions for shareholder approval. The proposed remuneration structures reflect the executives' experience and contribution to the textile business, with Mr. Arunkumar Biyani bringing over 35 years of industry expertise, Mr. Aman Biyani contributing 18 years of experience, and Mr. Aditya Biyani adding 15 years of sector knowledge.

The company operates in the textile industry with manufacturing facilities at MIDC Amravati and has been in business for over 35 years. The proposed governance changes aim to ensure continued leadership stability while maintaining regulatory compliance and shareholder value creation.