Shanthi Gears Limited , a prominent player in the industrial gear manufacturing sector, has received approval from both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) for the reclassification of two entities from its promoter group category.

Key Points of the Approval

• Entities Involved: The approval pertains to two promoter group entities:

  1. Yanmar Coromandel Agrisolutions Private Limited
  2. Coromandel Engineering Company Limited

• Approval Date: The no-objection approvals were issued on December 1, 2025.

• Application Date: The company had applied for this reclassification on October 25, 2025.

• Regulatory Framework: The reclassification was sought under Regulation 31A of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations.

Details of Shareholding

According to the LODR data provided by Shanthi Gears Limited, the shareholding status of the entities approved for reclassification is as follows:

Implications and Next Steps

With the approval from NSE and BSE, these entities will now exit the promoter group classification of Shanthi Gears Limited. This reclassification could potentially impact the company's shareholding structure and governance dynamics.

The approval marks the successful completion of the process initiated by Shanthi Gears to restructure its promoter category. This move aligns with the company's earlier disclosures regarding the re-classification of these promoter group members.

Investors and stakeholders of Shanthi Gears Limited should take note of this development and its potential implications on the company's ownership structure. The company may provide further updates or disclosures related to this reclassification in due course.

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.