Kesoram Industries Limited (KIL) has initiated a postal ballot process to seek shareholder approval for the re-appointment of Radhakrishnan Padmalochanan as Whole-time Director and Chief Executive Officer (CEO) for a one-year term, effective August 8, 2025. This move comes as the company navigates a critical transition phase following the demerger of its cement business.

Key Details of the Proposed Re-appointment

• Term: One year, from August 8, 2025, to August 7, 2026
• Remuneration: Unchanged at Rs 5.29 crores per annum, plus allowances
• Voting Period: August 6 to September 4, 2025
• Results Announcement: By September 6, 2025

Company's Rationale for Re-appointment

The Board of Directors, based on the recommendation of the Nomination and Remuneration Committee, has proposed Radhakrishnan's re-appointment, citing several factors:

1. Post-Demerger Transition: Following the completion of its cement business demerger on March 1, 2025, Kesoram Industries is in a transitional phase.
2. Financial Context: The company reported no operational profit for FY 2024-25, though it recorded a one-time demerger gain of Rs 5,675.63 crores.
3. Leadership Continuity: The Board considers Radhakrishnan's continued leadership essential for post-demerger restructuring and managing subsidiary operations in rayon, transparent paper, and chemicals.

About Radhakrishnan Padmalochanan

• Joined Kesoram Industries in 2014
• Serving as CEO since August 2019
• Qualifications: Chartered Accountant and Cost & Management Accountant
• Extensive experience in cement, automobile, oil, and gas industries
• Currently holds 624 equity shares in the company

Voting Process

Shareholders can cast their votes electronically through the remote e-voting system provided by National Securities Depository Limited (NSDL). The company has appointed Ritu Bajaj of RP & Associates as the scrutinizer to ensure a fair and transparent voting process.

Financial Performance Context

*Includes one-time demerger gain of Rs 5,675.63 crores

The proposed re-appointment and remuneration come at a time when the company is repositioning itself post-demerger. Shareholders will need to consider the company's transitional state and future prospects while casting their votes on this resolution.

Kesoram Industries Limited , a diversified company with interests in rayon, transparent paper, and chemicals, has reported a challenging first quarter for the fiscal year 2025-26, marked by a decline in revenue and a widened net loss.

Financial Performance

The company's unaudited financial results for the quarter ended June 30, 2025, reveal:

• Revenue from operations decreased to ₹61.05 crore, down from ₹67.28 crore in the same quarter of the previous year.
• The consolidated net loss widened to ₹99.34 crore, compared to a loss of ₹61.37 crore in the corresponding quarter last year.

Key Highlights

• Total income, including other income, stood at ₹73.36 crore for the quarter.
• The company faced a loss before exceptional items and tax of ₹9.62 crore from continuing operations.
• An exceptional item of ₹89.81 crore further impacted the bottom line.

Segment Performance

Following the demerger of its cement division in the previous year, Kesoram Industries now operates with a single reportable segment: Rayon, Transparent Paper, and Chemicals.

Operational Costs

The company's expenses for the quarter totaled ₹82.98 crore, with major components including:

Management Changes

The Board of Directors approved several key appointments during their meeting on July 14, 2025:

1. Snehaa Shaw was appointed as Company Secretary, effective July 14, 2025.
2. Mr. P. Radhakrishnan was re-appointed as a Whole-Time Director & CEO for a period of 1 year, effective August 8, 2025, subject to shareholder approval.

Outlook

While Kesoram Industries faces challenges in the current economic environment, the company continues to focus on its core operations in the rayon, transparent paper, and chemicals segments. The widened losses and revenue decline indicate ongoing pressures, and investors will be watching closely to see how the company navigates these headwinds in the coming quarters.

The company's management and newly appointed officials will likely be tasked with implementing strategies to improve operational efficiency and return to profitability in the face of current market conditions.

Note: All figures are in accordance with Indian Accounting Standards (Ind AS) as required under Section 133 of the Companies Act 2013.