Company Overview
Hindustan Composites Limited, a public company listed on BSE and NSE, is engaged in manufacturing fibre-based friction materials and investments. The company held its 62nd Annual General Meeting virtually on September 29, 2026.
Financial Performance Highlights (Standalone)
For FY 2025-26, the company reported revenue from operations of ₹37,501.46 lakhs, representing 15.36% growth from the previous year's ₹32,508.01 lakhs. Net profit stood at ₹3,110.83 lakhs (FY25: ₹3,499.73 lakhs), with earnings per share of ₹21.06. The company recognized an exceptional item of ₹291.31 lakhs related to increased employee benefit provisions due to implementation of new labor codes.
Dividend and Corporate Actions
The Board recommended a final dividend of ₹2 per share (40%) on equity shares of face value ₹5 each for FY 2025-26, absorbing ₹295.38 lakhs. The record date was set for September 22, 2026. In a significant development, the Board approved the slump sale of the Friction Business Undertaking to Rane (Madras) Limited for ₹370 crores, subject to shareholder approval.
Investment Portfolio and Balance Sheet
The company maintained a substantial investment portfolio totaling ₹100,610.65 lakhs, with 61.92% in equity instruments. Non-current assets stood at ₹112,644.64 lakhs, including property, plant and equipment of ₹14,425.07 lakhs. The balance sheet showed equity share capital of ₹738.45 lakhs (unchanged) and other equity of ₹113,794.03 lakhs.
Operational Performance and Business Segments
The composite products segment generated revenue of ₹31,504 lakhs, while investments contributed ₹3,963 lakhs. The company commenced trading in metals and commodities, generating ₹1,995 lakhs. Operational achievements included IRIS Certification for rail products and installation of 2.20 MWp solar capacity across manufacturing units.
Corporate Governance and Compliance
The Board comprised 6 Directors including 1 Independent Woman Director, with 5 meetings held during the year. The company faced a ₹1,55,000 fine from BSE for delayed submission of unaudited financial results for June 2019 quarter, which was paid under protest. All other regulatory requirements were complied with, and no instances of sexual harassment were reported.
Related Party Transactions and Joint Venture
Key transactions included inter-corporate deposits of ₹225.00 lakhs to Pallawi Resources Pvt. Ltd. and royalty income of ₹8.48 lakhs from Compo Advics. The joint venture Compo Advics (India) Pvt. Ltd. (49% ownership) reported revenue of ₹1,270.12 lakhs and loss of ₹23.20 lakhs, with the company discontinuing recognition of losses after fully providing for the investment.
Employee Benefits and CSR
Defined benefit plan obligations included gratuity with present value of ₹1,472.71 lakhs and net liability of ₹255.05 lakhs. The company spent ₹127.75 lakhs on CSR activities, exceeding the required ₹115.71 lakhs, focusing on socio-economic development and welfare programs.