Shanthi Gears Limited , a prominent player in the industrial gear manufacturing sector, has taken a significant step in restructuring its promoter category. The company has applied to both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) seeking approval for the declassification of two entities from its promoter group.

Key Points of the Application

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

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

• Regulatory Framework: The application is made under Regulation 31A of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations.

• Previous Disclosures: This move follows earlier disclosures made by the company regarding the re-classification of these promoter group members.

Details of Shareholding

According to the LODR data provided by Shanthi Gears Limited, the current shareholding status of the entities seeking declassification is as follows:

Implications and Next Steps

The declassification process, if approved, would result in these entities no longer being categorized as part of the promoter group of Shanthi Gears Limited. This move could potentially impact the company's shareholding structure and governance dynamics.

It's important to note that the application is currently under review by the stock exchanges. The final outcome will depend on the assessment and approval by the NSE and BSE, in line with the regulatory requirements set forth by the Securities and Exchange Board of India (SEBI).

Investors and stakeholders of Shanthi Gears Limited should keep an eye on further announcements from the company regarding the progress of this application and its potential implications on the company's ownership structure.

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.