Dividend Recommended: ₹3.50 per share, increased from ₹2.00 per share in FY25
Key Ratios: Current ratio improved to 2.90, debt equity ratio at -0.09, net profit ratio 6.96%, return on equity 11.76%
Operational Performance and Strategic Initiatives
Capacity Expansion and Modernization
Sales Volume: 225,000 tonnes with increased exports by 20.43% to ₹70.85 crore
Key Commissioning: Kocks Block improving dimensional tolerances, walking-beam reheating furnace increasing rolling capacity to 270,000 TPA
Solar Plant: 40 MW AC capacity generating 9 crore units annually, reducing carbon footprint from 0.73 to 0.48 tCO2/t
SAP S/4HANA Implementation: Completed for integrated operations management
Aichi Steel Strategic Partnership
Investment: ₹385 crore fresh equity increasing Aichi stake to 24.9% through preferential allotment of 1.48 crore shares
Technical Collaboration: Agreement renewed until 2028 with increased expatriate specialists
Board Representation: Two seats for Aichi representation
Future Projects: ₹475 crore forging unit for ring gears with commissioning targeted by FY2028
Future Growth Plans and Capital Structure
Greenfield Plant: 500,000 tonnes capacity with ₹2,000 crore investment, commissioning targeted for FY30
Brownfield Expansion: Plans to increase melting capacity from 300,000 to 360,000 tonnes
Diversification Strategy: Target of 30% revenue from non-automotive segments (railways, oil & gas, bearings)
Capital Structure: Share capital increased to ₹966.86 crore, debt-free balance sheet after repaying ₹150 crore working capital loans
Credit Rating: CRISIL AA/Stable for long-term, A1+ for short-term borrowings
Significant Transactions and Commitments
Government Grants: Received ₹255.69 crore under Industrial and Business Development Policy 2017
Export Commitments: ₹1,323.28 crore against import of capital goods under EPCG scheme
Related Party Transactions: Royalty payment of ₹121.98 crore to Aichi Steel, common corporate expenses with Vardhman Textiles Limited ₹40.47 crore
Capital Commitments: ₹527.67 crore remaining to be executed on capital account
ESG and Corporate Social Responsibility
Environmental Performance: Carbon intensity at 0.48 tCO2/t significantly below government norm of 2.2 and competitors' 3.0-3.2
Water Management: Consumption of 264,529 kilolitres despite increased production
Afforestation: Miyawaki forests developed on 24.2 acres with over 2 lakh trees planted
CSR Expenditure: ₹27.64 crore on environment sustainability (₹15.13 crore), women empowerment (₹4.33 crore), and preventive healthcare (₹5.34 crore)
Corporate Governance and Compliance
Board Composition: 14 directors (7 independent, 7 non-independent) including 3 women directors
ESOP Plans: Multiple grants outstanding under various plans with exercise prices ranging up to ₹145 per share
Employee Benefits: Gratuity obligation ₹156.94 crore with plan assets ₹153.21 crore
Compliance: Full compliance with Companies Act and SEBI regulations, no Benami properties or crypto investments
Annual General Meeting and Corporate Actions
16th AGM Date: 18 September 2026 at 10:00 AM via Video Conferencing
Resolutions: Adoption of financial statements, dividend declaration, re-appointment of directors including Mr. Rajendar Kumar Rewari and Mr. Toshio Ito
Record Date: 28 August 2026 for dividend eligibility
E-voting: Period from 15 September to 17 September 2026 with CDSL as scrutinizer
