Company Overview

Amarjothi Spinning Mills Limited filed its Annual Report for FY 2025-26, showing mixed financial performance with revenue decline but maintained dividend distribution.

Financial Performance

Consolidated Results:

  • Revenue from operations: ₹22,215.27 lakhs (down 3.5% YoY from ₹23,029.54 lakhs)
  • Net profit: ₹952.34 lakhs (down 16% from ₹1,134.63 lakhs)
  • Basic EPS: ₹14.11 (FY25: ₹16.81)
  • Total assets: ₹30,939.03 lakhs (up from ₹27,633.09 lakhs)

Standalone Results:

  • Total income: ₹207.59 crore (FY26) vs ₹213.99 crore (FY25)
  • Profit after tax: ₹9.37 crore (FY26) vs ₹11.04 crore (FY25)
  • Basic EPS: ₹13.88 (FY26) vs ₹16.36 (FY25)

Dividend Declaration

The board recommended a final dividend of ₹2.20 per share (22% on face value of ₹10), totaling ₹1.48 crore. Record date set for August 21, 2026, with payment on or before September 28, 2026.

Operational Highlights

  • Yarn production: 54.58 lakh kgs (FY26) vs 60.86 lakh kgs (FY25)
  • Yarn sales: 57.41 lakh kgs (FY26) vs 66.82 lakh kgs (FY25)
  • Wind power generation: 333.17 lakh kWh (FY26) vs 282.19 lakh kWh (FY25)
  • Export FOB value: ₹7.17 crore (FY26) vs ₹13.05 crore (FY25)

Corporate Governance & Management Changes

The company will hold its 38th AGM on August 28, 2026, seeking shareholder approval for:

  • Reappointment of R. Premchander as Managing Director
  • Reappointment of R. Jaichander as Whole Time Director
  • Reappointment of N. Radhakrishnan as director

Board Changes:

  • Smt. Krishnan Kaviyas appointed as Independent Director effective February 11, 2026
  • Smt. Meyappan Amutha ceased as Non-Executive Independent Director on September 25, 2025
  • Smt. Manonmani Sivasamy resigned as Non-Executive Independent Director on March 16, 2026

Auditor Report & Compliance

M/s V. Narayanaswami & Co. issued an unqualified opinion, confirming:

  • Adequate internal financial controls over financial reporting
  • No material uncertainties regarding going concern
  • No pending litigations impacting financial position
  • No fraud reported

Secretarial auditor noted delay in annual report submission by 2 days (fine paid to SEBI).

Key Financial Ratios

  • Current ratio: 13.44 (standalone, improved from 6.32)
  • Debt-equity ratio: 0.55 (consolidated)
  • Return on equity: 4.77% (consolidated)
  • Net profit margin: 4.29% (consolidated)

Related Party Transactions

Significant transactions with subsidiary RPJ Textiles Limited: Sales ₹318.70 crore, receivables outstanding ₹213.96 crore. Outstanding loans from directors: ₹553.92 crore.

CSR Activities

CSR obligation of ₹30.95 lakh (2% of average net profit) fully contributed to Prime Minister's Relief Fund with no unspent amount carried forward.