Mafatlal Industries Limited (MIL), a prominent player in the textile industry, has entered into a significant shareholders agreement with its subsidiary, Mafatlal Apparel Exports Private Limited (MAEPL), and existing shareholder Mr. Sagar Birnale. The agreement, executed on October 3, 2025, aims to establish a framework for the management, operations, and inter-shareholder relationships within MAEPL.

Ownership Structure and Agreement Details

The shareholding structure of MAEPL is as follows:

The shareholders agreement covers several key aspects of MAEPL's governance, including:

1. Management structure
2. Shareholder meetings
3. Share transfers
4. Operational matters

Key Provisions of the Agreement

• Board Composition: MIL will appoint the majority of directors on MAEPL's board, ensuring significant control over the subsidiary's operations.
• Liability Limitation: MIL's liability is restricted to its shareholding percentage, which stands at 51%.
• Arm's Length Transactions: All transactions between the parties will be conducted at arm's length, maintaining transparency and fairness.

Impact on Mafatlal Industries Limited

According to the company's disclosure, the agreement does not have any direct impact on MIL's management or control. Furthermore, no additional liability has been imposed on the parent company as a result of this agreement.

Regulatory Compliance

The shareholders agreement has been disclosed in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This disclosure ensures transparency for investors and regulatory bodies regarding the company's strategic moves and inter-company relationships.

Conclusion

This shareholders agreement marks a significant step for Mafatlal Industries Limited in structuring its relationship with its subsidiary, MAEPL, and partner Mr. Sagar Birnale. By clearly defining the management structure and operational guidelines, MIL aims to foster a productive and well-governed environment within its subsidiary, potentially leading to enhanced value creation for all stakeholders involved.

Mafatlal Industries has reported strong financial results for the first quarter, showcasing significant growth across key metrics.

Financial Highlights

• Net Profit: ₹460.00 crore, up 51% from ₹304.00 crore in the same quarter last year
• Revenue: ₹1,240.00 crore, a substantial increase from ₹450.00 crore year-over-year
• EBITDA: ₹438.00 crore, rising from ₹261.00 crore in the same period last year
• EBITDA Margin: 35.32%, compared to 58.00% in the previous year

Strong Revenue Growth

Mafatlal Industries demonstrated remarkable revenue growth, with the top line surging to ₹1,240.00 crore, compared to ₹450.00 crore in the corresponding quarter of the previous fiscal year. This represents a significant year-over-year increase of approximately 175.56%.

Profit Performance

The company's net profit showed impressive growth, reaching ₹460.00 crore for the quarter, up from ₹304.00 crore in the same period last year. This 51.32% increase in net profit underscores the company's ability to translate revenue growth into bottom-line results.

EBITDA and Margin Analysis

While EBITDA rose to ₹438.00 crore from ₹261.00 crore, indicating improved operational performance, the EBITDA margin experienced a compression. The margin decreased to 35.32% from 58.00% in the previous year, suggesting that the company faced some pressure on profitability despite the strong revenue growth.

Board Meeting and Results Approval

According to the company's filing with the BSE, the Board of Directors of Mafatlal Industries met on August 4 to review and approve the unaudited financial results for the quarter ended June 30. The meeting, which commenced at 12:30 PM, concluded at 2:24 PM.

Auditor's Review

The statutory auditors, M/s. Price Waterhouse Chartered Accountants LLP, conducted a Limited Review of the unaudited financial results. They issued an unmodified opinion on both the consolidated and standalone financial statements.

Mafatlal Industries' strong performance reflects its robust business model and effective execution of strategies. While the company has shown impressive top-line and bottom-line growth, the compression in EBITDA margin warrants attention and may be an area for the management to address in the coming quarters.

Investors and stakeholders will likely keep a close watch on how Mafatlal Industries maintains its growth momentum while managing operational efficiencies in the subsequent quarters.