Klassic Industries Private Limited has disclosed a significant increase in its shareholding in Southern Latex Limited through an open market acquisition. The Chennai-based company filed the mandatory disclosure under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, following the share purchase completed on March 6, 2026.

Acquisition Details

The transaction involved the purchase of 3,50,273 shares of Southern Latex Limited through open market operations. This acquisition represents 4.75% of the total share capital of the target company.

Shareholding Position

Following this acquisition, Klassic Industries' total shareholding in Southern Latex Limited has increased substantially. The company's stake has grown from 37.22% to 41.98% of the total voting capital.

Company Information

Klassic Industries Private Limited, incorporated in 1992 with CIN U31300TN1992PTC022596, is based in Chennai at Kumbhat Commercial Complex, Poonamallee High Road. The company belongs to the promoter/promoter group category of Southern Latex Limited.

Southern Latex Limited is listed on the Bombay Stock Exchange with a total equity share capital of 73,59,2000 shares. The company's scrip code is 514454 on BSE.

Regulatory Compliance

The disclosure was signed by Kuppaji Rao Bharath Rao, Director of Klassic Industries Private Limited (DIN: 08454124), and filed with BSE Limited on March 9, 2026. This filing ensures compliance with SEBI regulations governing substantial acquisition of shares and takeovers, which mandate disclosure when shareholding crosses certain thresholds.

Southern latex Limited has delivered impressive financial performance in Q3FY26, demonstrating strong profitability growth despite operating in a single business segment. The Chennai-based company, which operates exclusively in coir sales, reported its unaudited financial results for the quarter ended December 31, 2025, showing significant improvement across key financial metrics.

Strong Quarterly Performance

The company's financial performance for Q3FY26 showed remarkable improvement compared to the previous year. Southern latex achieved substantial profit growth while maintaining stable revenue streams.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, Southern latex continued its positive trajectory with consistent profitability improvements. The company's disciplined approach to expense management contributed significantly to enhanced bottom-line performance.

Expense Management and Cost Control

The company demonstrated effective cost management across various expense categories during Q3FY26. Employee benefit expenses increased marginally to ₹1.90 lakhs from ₹1.50 lakhs in Q3FY25, while other expenses decreased significantly to ₹2.56 lakhs from ₹3.51 lakhs year-on-year. Notably, the company reported no depreciation expense in Q3FY26 compared to ₹0.36 lakhs in the corresponding quarter of the previous year.

Balance Sheet Strength

As of December 31, 2025, Southern latex maintained a robust financial position with total assets of ₹684.71 lakhs. The company's balance sheet reflects strong liquidity management and asset utilization.

Cash Flow and Operational Efficiency

The company's cash flow statement for the nine months ended December 31, 2025, shows a net cash outflow from operating activities of ₹3.43 lakhs. Despite the operational cash flow challenges, the company maintained adequate liquidity with cash and cash equivalents of ₹5.04 lakhs at the end of December 2025.

Corporate Governance and Compliance

The Board of Directors approved the unaudited financial results at their meeting held on January 30, 2026. The meeting commenced at 2:00 PM and concluded at 2:30 PM, with the Audit Committee reviewing and recommending the results. The statutory auditors provided an unmodified opinion on the financial results, confirming compliance with applicable accounting standards and regulatory requirements.

Southern latex Limited continues to focus on its core coir sales business while maintaining strong financial discipline and governance standards. The company's consistent profitability improvement and effective cost management position it well for sustained growth in the coming quarters.