Financial Performance Highlights

DISA India Limited reported strong financial results for FY 2025-26 with:

  • Revenue from operations: ₹4,247.0 million (10% growth YoY from ₹3,846.9 million in FY25)
  • Profit before tax: ₹726.8 million (after exceptional item of ₹35.1 million)
  • Profit after tax: ₹539.2 million (compared to ₹537.4 million in FY25)
  • Earnings per share (EPS): ₹370.79 (₹369.55 in FY25)
  • Total comprehensive income: ₹533.3 million
  • Dividend recommended: Final dividend of ₹200 per equity share (2000%) amounting to ₹290.84 million, representing 54% payout ratio

Annual General Meeting Details

  • Date: August 12, 2026 at 2:30 PM IST
  • Mode: Video Conferencing/Other Audio-Visual Means
  • Record date: August 5, 2026
  • Book closure: August 6, 2026 to August 12, 2026
  • Dividend payment date: On or before September 10, 2026
  • Remote e-voting period: August 7, 2026 (9:00 AM) to August 11, 2026 (5:00 PM)

Business Operations and Strategic Updates

The company delivered 10% top-line growth despite challenging global business environment characterized by economic uncertainties and inflationary pressures. It maintained 19% CAGR topline growth and 18% PAT growth over past 5 years. The company commenced investments in new manufacturing facility at Tumkur to enhance production capabilities, though delayed to June 2026 due to administrative approvals. Operations of subsidiary Bhadra Castalloy Private Limited were closed from February 28, 2025 as business was no longer aligned with core group operations.

Property, Plant and Equipment & Investment Properties

The company's net property, plant and equipment stood at ₹572.2 million with additions of ₹78.6 million during FY26. Capital work-in-progress of ₹287.2 million primarily for setup of new factory. The company transferred freehold land and factory building at Hosakote to investment properties (₹80.7 million in FY25), with investment properties carried at ₹32.9 million consisting of office spaces in Pune, Kolkata, and New Delhi, and factory building at Hosakote.

Board and Management Changes

  • Appointments: Mr. Muralidharan Angadu Mohanakrishnan appointed as Additional Independent Director effective January 28, 2026
  • Resignations: Mr. Bhagya Chandra Rao ceased as Independent Director on January 27, 2026; Mr. Anders Wilhjelm resigned as Non-Executive Director on February 28, 2026
  • Retirement by rotation: Ms. Ulla Hartvig Plathe Tønnesen retires and offers herself for re-appointment

Resolutions for Shareholder Approval

Ordinary Business

1. Adoption of audited financial statements for FY 2025-26

2. Declaration of final dividend of ₹200 per share (2000%)

3. Re-appointment of Ms. Ulla Hartvig Plathe Tønnesen as Director

Special Business

4. Re-appointment of Mr. Lokesh Saxena as Managing Director & CEO for 3 years from June 21, 2026 to June 20, 2029 with revised remuneration

5. Ratification of remuneration of Cost Auditors, Messrs. Rao, Murthy & Associates

6. Approval of Material Related Party Transactions with DISA Industries A/S, Denmark for FY 2026-27 up to ₹1,200 million aggregate value

Key Accounting and Operational Matters

  • Exceptional Items: ₹35.1 million provision for employee benefit obligations due to implementation of Labour Codes
  • Arbitration Matter: Provided for arbitration award of ₹25.5 million plus interest related to equipment performance, currently under appeal in Karnataka High Court
  • Employee Benefits: Gratuity obligation of ₹147.8 million with net liability of ₹65.0 million
  • Tax Matters: Current tax expense of ₹187.9 million with effective tax rate of 25.82%; contingent liabilities include ₹15.2 million in income tax disputes
  • Segment Reporting: Single operating segment - Manufacturing and selling of foundry machinery with 83.2% revenue from India and 16.8% from outside India

Related Party Transactions

All related party transactions were in ordinary course of business, at arm's length basis. Significant transactions with Norican Group entities included:

  • Purchases from DISA Industries A/S: ₹113.7 million (raw materials) and ₹209.5 million (traded goods)
  • Sales to DISA Industries A/S: ₹266.7 million
  • Royalty expenses: ₹34.5 million
  • Group management fees: ₹82.0 million
  • Information technology costs: ₹132.7 million

Corporate Social Responsibility and Compliance

  • Total CSR obligation: ₹11.3 million fully spent on education initiatives including "Norican Scholarship" program
  • MSMED Act disclosures showing ₹163.4 million due to micro and small enterprises
  • Adequate internal financial controls in place with compliance to various statutory requirements
  • No material litigations other than those disclosed

Key Ratios (Standalone)

  • Operating profit margin (EBITDA): 15.9% (15.4% in FY25)
  • Net profit margin: 12.7% (14.1% in FY25)
  • Debtor turnover ratio: 7.4 (10.6 in FY25)
  • Inventory turnover ratio: 3.2 (2.9 in FY25)
  • Interest coverage ratio: 53.6 (34.6 in FY25)
  • Current ratio: 2.2 (2.0 in FY25)
  • Return on net worth: 17.9% (20.4% in FY25)