VTM Limited , a prominent textile company, has announced a postal ballot seeking shareholder approval for four key resolutions, as disclosed in a recent corporate filing.

Director Appointments and Continuations

The company is proposing the continuation of Mr. R.M. Somasundaram as a Non-Executive Director beyond the age of 75. Mr. Somasundaram, who has been associated with VTM Limited since 1984, will reach this milestone in November 2026. His extensive experience in the textile industry and significant contributions to the company's strategic direction have been cited as reasons for recommending his continued involvement.

Additionally, VTM Limited is seeking to re-appoint two Independent Directors for second terms:

1. Mr. Ganesh Ananthakrishnan (DIN: 00003586)
2. Mr. L. Sevugan (DIN: 03580186)

Both directors are proposed for re-appointment for five consecutive years, from March 25, 2026, to March 24, 2031. Mr. Ananthakrishnan brings expertise in finance, corporate advisory, and governance, while Mr. Sevugan offers extensive experience in business management and operations.

Related Party Transaction

The company is also seeking approval for entering into contracts with Colour Yarns Private Limited, a related party. The proposed transaction involves the purchase and sale of goods, with the following details:

It's noteworthy that Smt. Uma Kannan (Director) and Sri K. Thiagarajan (Chairman and Managing Director) are interested parties in this transaction, either as directors or shareholders of Colour Yarns Private Limited.

Voting Process

The e-voting period for these resolutions is scheduled as follows:

• Commencement: November 19, 2025, at 9:00 a.m. (IST)
• Conclusion: December 18, 2025, at 5:00 p.m. (IST)

Results of the postal ballot are expected to be announced by December 20, 2025.

VTM Limited has appointed Mr. S. Ramalingam, a Practicing Company Secretary, as the Scrutinizer to ensure a fair and transparent voting process.

Shareholders are encouraged to review the detailed postal ballot notice and participate in the voting process to have their say in these significant corporate decisions.

VTM Limited , a prominent player in the textile industry, has released its financial results for the second quarter, revealing a mixed performance with significant revenue growth but a sharp decline in profitability.

Financial Highlights

VTM Limited reported a substantial increase in revenue, which grew by 35.3% year-over-year to 989.70 million rupees in Q2 FY2025-26, up from 731.70 million rupees in the same period last year. This robust top-line growth demonstrates the company's strong market presence and ability to expand its sales despite challenging market conditions.

However, the company's profitability metrics showed a significant decline. The Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) fell by 62.6% to 50.00 million rupees, compared to 133.60 million rupees in the corresponding quarter of the previous year. Consequently, the EBITDA margin contracted sharply from 18.26% to 5.56%, indicating increased pressure on the company's operational efficiency.

The net profit for the quarter stood at 23.20 million rupees, marking a steep 76.3% decrease from the 97.70 million rupees reported in Q2 FY2024-25. This substantial reduction in bottom-line performance suggests that VTM faced significant challenges in maintaining its profit margins during the quarter.

Analysis and Outlook

The contrasting trends of revenue growth and profit decline point to potential cost pressures or changes in the product mix that may have affected VTM's profitability. The company may need to focus on cost optimization and operational efficiency to improve its margins in the coming quarters.

VTM's ability to grow its revenue significantly in the current economic environment is a positive sign, indicating strong demand for its products. However, the sharp decline in profitability raises questions about the sustainability of this growth model and may require management attention to balance top-line expansion with bottom-line performance.

Investors and stakeholders will likely look for guidance from VTM's management on strategies to improve profitability while maintaining revenue growth in the upcoming quarters.

The company's performance in the second half of the fiscal year will be crucial in determining whether it can reverse the trend of declining profits and leverage its strong revenue growth to deliver improved financial results.

Corporate Governance Updates

In addition to the financial results, VTM Limited has announced several key corporate governance matters:

1. The Board has recommended the continuation of Mr. RM Somasundaram as a Non-Executive Director beyond the age of 75, subject to shareholder approval.

2. Mr. Ganesh Ananthakrishnan and Mr. L. Sevugan have been proposed for re-appointment as Independent Directors for a second term of five years, starting from March 25, 2026.

3. The company is seeking shareholder approval to enter into a contract with Colour Yarns Private Limited, a related party, for the purchase and sale of goods and materials, with a proposed transaction limit of 100 crore rupees over approximately 3 years and 5 months.

These governance decisions reflect VTM's commitment to maintaining a balanced and experienced board while ensuring transparency in related party transactions. The upcoming postal ballot will allow shareholders to vote on these important matters, reinforcing the company's adherence to good corporate governance practices.