Sarla Performance Fibers has released its financial results for the second quarter, showcasing a mixed performance with notable improvements in operational efficiency.

Financial Highlights

The company's Q2 consolidated results present a nuanced picture of its financial health:

Improved Operational Efficiency

Despite a marginal decline in net profit, Sarla Performance Fibers demonstrated enhanced operational efficiency:

• EBITDA Growth: The company's EBITDA increased to ₹230.30 crore from ₹221.00 crore in the previous year, marking a 4.21% year-over-year growth.
• Margin Expansion: The EBITDA margin saw a significant improvement, rising to 21.50% from 19.44% in the corresponding quarter last year, indicating better cost management and operational efficiency.

Slight Dip in Net Profit

While operational metrics improved, the company experienced a minor setback in its bottom line:

• The consolidated net profit for Q2 stood at ₹189.60 crore, slightly down from ₹192.00 crore in the same quarter of the previous fiscal year.
• This represents a marginal decrease of 1.25% year-over-year.

Corporate Governance Update

In a separate announcement, Sarla Performance Fibers has appointed CS Mustafa Manasawala (ACS: 76344) as the new Company Secretary and Compliance Officer, effective November 11, 2025. This appointment aligns with the company's commitment to maintaining strong corporate governance practices.

Market Implications

The mixed Q2 results, featuring improved operational metrics alongside a slight profit decline, may lead to varied market reactions:

• The expansion in EBITDA margin could be viewed positively by investors, as it suggests improved operational efficiency.
• However, the minor dip in net profit might raise questions about the company's ability to translate operational improvements into bottom-line growth.

Investors and analysts will likely keep a close eye on how Sarla Performance Fibers leverages its improved operational efficiency to drive profit growth in the coming quarters.

Sarla Performance Fibers Limited , a key player in the textile industry, has announced a significant change to its Audit Committee structure. The company has appointed Mr. Paulo Manuel Castro Ferreira Moura as a new member of the committee, effective immediately. This decision, approved by the Board of Directors through a circular resolution on October 25, 2025, marks an important step in enhancing the company's corporate governance framework.

Reconstituted Audit Committee

The newly reconstituted Audit Committee now comprises four members, bringing a diverse range of expertise to oversee the company's financial reporting process. Here's a breakdown of the committee's composition:

This restructuring demonstrates Sarla Performance Fibers' commitment to maintaining a robust and independent audit process. The inclusion of Mr. Paulo Manuel Castro Ferreira Moura, alongside the existing members, is expected to bring fresh perspectives and strengthen the committee's oversight capabilities.

Implications for Corporate Governance

The reconstitution of the Audit Committee with a majority of Non-Executive Independent Directors aligns with best practices in corporate governance. This structure ensures:

1. Enhanced independence in financial oversight
2. Diverse expertise in financial matters
3. Stronger checks and balances in the company's financial reporting process

The move is likely to be viewed positively by stakeholders, as it reinforces Sarla Performance Fibers' dedication to transparency and accountability in its financial operations.

As the textile industry continues to evolve, such proactive measures in corporate governance can play a crucial role in maintaining investor confidence and ensuring the company's long-term sustainability.

Sarla Performance Fibers Limited's decision to strengthen its Audit Committee reflects its ongoing efforts to adapt to changing business environments and regulatory requirements, positioning the company for continued growth and success in the competitive textile market.