Shanthi Gears Limited (SGL), a subsidiary of Tube Investments of India Limited, has released its financial results for the second quarter of the fiscal year 2025-26, revealing a decline across key financial metrics. The company's performance reflects the challenging market conditions faced by the industrial gear manufacturing sector.

Financial Performance

The company's Q2 FY26 results show a downturn in several key areas when compared to the same period last year:

Despite the overall decline, Shanthi Gears maintained a strong Return on Average Invested Capital (ROIC) of 46% in Q2 FY26, highlighting the company's efficiency in utilizing its capital.

Operational Highlights

• Free Cash Flow Generation: The company generated a Free Cash Flow of ₹12.68 Crores during Q2 FY26, demonstrating its ability to maintain liquidity despite challenging conditions.
• Order Book: Shanthi Gears booked orders worth ₹138 Crores during the quarter, representing a 7% increase. The unexecuted order book as of September 30, 2025, stood at ₹254 Crores, providing some visibility for future revenues.

Corporate Governance Update

In a separate announcement, Shanthi Gears informed that its Board of Directors has approved requests for reclassification from two entities in its Promoter Group:

1. M/s. Yanmar Coromandel Agrisolutions Private Limited (YCAS)
2. M/s. Coromandel Engineering Company Limited (CECL)

Both entities currently hold no shares in the company and have requested to be reclassified from the Promoter Group category. This reclassification is subject to regulatory approvals and compliance with SEBI Listing Regulations.

Market Outlook

While Shanthi Gears faces headwinds in the current market environment, the increase in order bookings suggests potential for recovery. The company continues to focus on its key priorities of Revenue, Profitability, Return on Invested Capital, and Free Cash Flow.

Investors and market watchers will be keenly observing how Shanthi Gears navigates these challenges and capitalizes on its order book to drive growth in the coming quarters.

Shanthi Gears Limited , a prominent player in the engineering sector, has received a significant request that could alter its shareholder structure. The company announced that Coromandel Engineering Company Limited, currently classified under the 'promoter and promoter group' category, has sought reclassification to the 'public' category of shareholders.

Reclassification Request Details

According to the company's filing with the stock exchanges, Coromandel Engineering Company Limited submitted a formal request on September 24, seeking reclassification under Regulation 31A of the SEBI Listing Regulations. This move comes at a time when Coromandel Engineering holds no equity shares in Shanthi Gears, as per the latest available information.

Approval Process

The reclassification request is subject to a multi-step approval process, which includes:

1. Approval from Shanthi Gears' Board of Directors
2. Consent from the National Stock Exchange of India Limited (NSE)
3. Approval from BSE Limited (formerly known as Bombay Stock Exchange)

Implications and Next Steps

This development could potentially impact the company's shareholding pattern and governance structure. Shanthi Gears will need to navigate the regulatory requirements carefully to ensure compliance with SEBI regulations throughout the reclassification process.

Trading Window Closure

In a separate but related development, Shanthi Gears has also announced the closure of its trading window for insiders. The company informed the stock exchanges that:

• The trading window for dealing in the company's securities will be closed from October 1.
• This closure applies to the company's directors and other designated persons, including their immediate relatives.
• The window will remain closed until 48 hours after the declaration of Unaudited Standalone Financial Results for the quarter and half year ending September 30.

This trading window closure is in line with the company's Code of Conduct to Regulate, Monitor and Report Trading by Designated Persons and their Immediate Relatives, as well as the Code of Practices and Procedures for Fair Disclosure.

Investors and market participants will be keenly watching for further updates on both the reclassification request and the upcoming financial results announcement.