Rajapalayam Mills Limited , a prominent player in the Indian textile industry, has reported a remarkable turnaround in its financial performance for the second quarter. The company's consolidated net profit surged to ₹171 crore, marking a significant recovery from a loss of ₹57 crore in the corresponding quarter of the previous year.

Revenue Growth and Operational Efficiency

The company witnessed a modest increase in revenue, which rose to ₹2,414.50 crore from ₹2,291.90 crore year-over-year, representing a growth of about 5.3%. This uptick in revenue, coupled with improved operational efficiency, contributed to the company's robust bottom-line performance.

Profitability Metrics

Rajapalayam Mills demonstrated substantial improvement in its profitability metrics:

The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a remarkable increase of 55.2%, rising from ₹268.00 crore to ₹416.00 crore. This significant improvement in operational performance is reflected in the EBITDA margin, which expanded by 553 basis points to reach 17.23% compared to 11.70% in the same quarter last year.

Financial Position and Board Approval

The company's board of directors approved the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30. This approval underscores the management's confidence in the financial statements and the company's overall performance.

Segment Performance

Rajapalayam Mills operates in two primary segments: Textiles and Wind Mills. While specific segment-wise performance details were not provided, the overall revenue growth suggests a positive trend across its business divisions.

Outlook

The strong Q2 results indicate a positive trajectory for Rajapalayam Mills. The company's ability to turn a significant loss into a substantial profit within a year demonstrates effective cost management and operational improvements. As the textile industry continues to recover from recent challenges, Rajapalayam Mills appears well-positioned to capitalize on market opportunities and maintain its growth momentum.

Investors and market observers will likely keep a close watch on the company's performance in the coming quarters to see if this impressive turnaround can be sustained and further improved upon.

Rajapalayam Mills Limited has announced the successful completion of a postal ballot conducted through remote e-voting. The company's shareholders have approved all six special business resolutions with the requisite majority, as disclosed in a regulatory filing on October 10, 2025.

Key Resolutions Approved

The postal ballot, which concluded on October 9, 2025, saw the passage of four ordinary resolutions and two special resolutions:

1. Material Related Party Transactions: Four separate ordinary resolutions were approved for material related party transactions with:

   • Ramco Industries Limited
   • Sandhya Spinning Mill Limited
   • Sri Vishnu Shankar Mill Limited
   • The Ramaraju Surgical Cotton Mills Limited

   Each of these transactions is valued up to Rs. 450.00 crores for a period of three financial years from FY 2025-26 to 2027-28.

2. Investment and Loan Limits: A special resolution was passed to approve making investments, giving loans, guarantees, and providing security exceeding the limits specified under Section 186 of the Companies Act, 2013, up to an aggregate amount of Rs. 150.00 crores.

3. Re-appointment of Independent Director: Shareholders approved the re-appointment of Justice Smt. Chitra Venkataraman (Retd.) as a Non-Executive Independent Director for a second term of five consecutive years, from August 30, 2025, to August 29, 2030.

Voting Details

The e-voting process was scrutinized by R. Palaniappan, Chartered Accountant. Key voting statistics include:

The total number of shareholders on the record date (August 29, 2025) was 7,752.

Compliance and Transparency

Rajapalayam Mills has adhered to the provisions of Sections 108 and 110 of the Companies Act, 2013, and the relevant SEBI regulations in conducting this postal ballot. The company's commitment to corporate governance is evident in its prompt disclosure of the voting results and the scrutinizer's report.

These approvals pave the way for Rajapalayam Mills to engage in significant related party transactions, potentially enhancing its operational capabilities. The approval for increased investment and loan limits may provide the company with greater financial flexibility in its future endeavors.

Investors and stakeholders should note that these resolutions, particularly the related party transactions and increased investment limits, could have a material impact on the company's financial position and operations in the coming years.