Yasho Industries Limited , a specialty chemicals manufacturer, has reported growth in both revenue and net profit for its latest quarter, alongside key corporate governance decisions.

Financial Performance

Yasho Industries reported consolidated quarterly revenue of Rs 183.00 crores, representing a 10% year-over-year growth despite sharp pricing corrections. The company's volume growth reached 26% year-over-year. EBITDA margin improved to 18.20% and PAT margin to 2.65%, driven by optimized product mix, cost discipline, and operational efficiencies.

For the half-year (H1), the company posted revenue of Rs 383.00 crores. The industrial business accounted for 86% of total revenue, while exports contributed 65%.

Board Meeting Outcomes

The Board of Directors of Yasho Industries convened and approved several significant items:

1. Financial Results: The board approved the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30.

2. Promoter Reclassification: The board considered and approved requests from certain promoter group shareholders for reclassification to public shareholder status.

Promoter Reclassification

A key development from the board meeting was the approval of reclassification requests from certain promoter group shareholders. The individuals seeking reclassification are:

• Mr. Rajanikant Desai
• Mrs. Kalpana Desai
• Rajanikant Desai HUF

These shareholders have requested to be reclassified from "Promoter Group Shareholder" to "Public Shareholder" status. This reclassification is subject to approvals from stock exchanges and shareholders, as per SEBI regulations.

The board noted that the reclassification is in line with a Family Settlement Agreement between the outgoing promoter group shareholders.

Strategic Developments

The company announced several strategic initiatives:

1. A 15-year supply agreement for lubricant additives was signed, with estimated revenues of Rs 150.00 crores from FY27.
2. A new R&D laboratory was inaugurated in October at Pakhajan, enhancing the company's research capabilities.

Management Commentary

Managing Director CEO Parag Jhaveri expressed optimism about the company's future prospects. He stated that demand softness has bottomed out and expressed confidence in achieving strong growth in FY26, citing increasing order visibility and operational ramp-up.

Compliance and Regulatory Aspects

The company has confirmed its compliance with various regulatory requirements, including:

• Maintaining shareholding below 10% for the reclassified shareholders
• Relinquishing control over company affairs by the reclassified shareholders

The reclassification process will proceed in accordance with SEBI regulations, including the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Investors and market participants should note that these developments may have implications for the company's shareholding structure and potentially its market perception.

Yasho Industries Limited , a company listed on the National Stock Exchange of India (NSE: YASHO), has recently received requests from three promoter group entities seeking reclassification from the 'Promoter Group' category to the 'Public' category. This move, if approved, could potentially alter the company's shareholding structure and governance dynamics.

Reclassification Requests

The company has received formal requests from the following individuals and entities:

Regulatory Compliance

The reclassification requests cite compliance with regulatory conditions as per SEBI (Securities and Exchange Board of India) guidelines. These conditions include:

1. Holding less than 10% of the total voting rights in the company
2. No direct or indirect control over the affairs of the company
3. No special rights through formal or informal arrangements
4. No representation on the board of directors
5. Not acting as key managerial personnel in the company

Next Steps

Yasho Industries has stated that these reclassification requests will be presented to the Board of Directors at their upcoming meeting for consideration. The company will then take appropriate steps to secure all necessary approvals in accordance with Regulation 31A of the SEBI Listing Regulations.

Implications

While the total shareholding of these promoter group members is relatively small at 0.08%, their reclassification, if approved, could have implications for the company's governance structure and public float. It's important to note that this move does not necessarily indicate a change in the company's operations or strategy but rather reflects a shift in the classification of these shareholders.

Investors and market participants will be watching closely for the outcome of the Board's decision and any subsequent regulatory approvals. The reclassification, if approved, could potentially increase the public shareholding of the company, albeit by a small margin.

As per the LODR data, the company has duly informed the National Stock Exchange of India Limited about these reclassification requests, adhering to the transparency requirements set by SEBI for listed entities.

Shareholders and potential investors are advised to keep an eye on further announcements from Yasho Industries regarding the progress of these reclassification requests and their potential impact on the company's shareholding structure.