Annual Report for the FY 2025-26

Page No.1 DIVYASHAKTI LIMITED Page No.2 DIVYASHAKTI LIMITED Corporate Information Category Details Managing Director Sri N. Hari Hara Prasad Directors - Sri M. Ramakrishna Prasad - Smt. Anuradha Anne - Sri J. Srinivasa Karunendra - Sri P. Mohan Krishna - Sri N. Sai Venkateshwara Prasad Statutory Auditors M/s. Pavuluri & Co. Chartered Accountants Plot No. 48, Flat No. 301, “Micasa” Phase-I, Kavuri Hills, Hyderabad – 500033, Telangana, India Secretarial Auditors M/s. Puttaparthi Jagannatham & Co. Company Secretaries Flat No. 315, Bhanu Enclave, Adj. ESI Hospital, Sunder Nagar, Hyderabad – 500038, Telangana, India Chief Financial Officer Smt. Anuradha Anne Company Secretary Mrs. Nilima Kumari Bankers - ICICI Bank - HDFC Bank - State Bank of India Registered Office Flat Nos. 301 to 304, Divyashakti Complex, 7-1-58, Ameerpet, Hyderabad – 500016, Telangana, India Factory Location Survey Nos. 432/1 & 447, Narsapur Village, Medak District, Telangana, India Website www.divyashakti.com Page No.3 DIVYASHAKTI LIMITED MANAGING DIRECTOR’S MESSAGE N. Hari Hara Prasad Managing Director Dear Shareholders, It is with immense pride and a deep sense of responsibility that I present to you the Annual Report of Divyashakti Limited for the Financial Year 2025–26. FY 2025–26 was a year shaped by global economic uncertainties, evolving trade dynamics, and fluctuating demand across our key export markets. The business environment remained particularly challenging following the imposition of higher tariffs by the United States on certain imports from India, significantly affecting our largest export market. This development adversely impacted market sentiment, export demand, and the overall performance of the natural and engineered stone industry. These challenges tested the resilience of businesses worldwide, including our Company. Despite these headwinds, we remained steadfast in our commitment to operational excellence, customer satisfaction, and sustainable value creation. By maintaining our focus on quality, reliability, and customer service, we successfully retained our valued customer base while reinforcing the strength of our business fundamentals. The year reaffirmed the resilience of our people and our ability to adapt to a rapidly changing business environment while remaining focused on our long-term strategic objectives. Operational Excellence Operational excellence remains at the core of our business strategy and continues to drive sustainable value creation. During FY 2025–26, we focused on improving productivity, enhancing operational efficiency, and optimising the utilisation of available resources to strengthen our competitive position. Continuous cost optimisation initiatives, disciplined operational practices, and prudent resource management enabled us to improve efficiency despite a challenging business environment. We also continued to strengthen our manufacturing capabilities, streamline processes, and optimise costs while maintaining the highest standards of product quality and customer service. These initiatives have positioned the Company to respond effectively as market conditions improve. Financial Performance Our financial performance during FY 2025–26 reflected the impact of the challenging global business environment and trade-related disruptions. Revenue from operations declined by 45.58% to ₹3,475.62 lakhs, compared with ₹6,387.22 lakhs in FY 2024–25. EBITDA decreased to approximately ₹377.14 lakhs from ₹596.52 lakhs in the previous financial year, while Profit Before Tax decreased to ₹139.81 lakhs from ₹338.96 lakhs in the previous year. Profit After Tax declined to ₹104.96 lakhs from ₹253.59 lakhs. Page No.4 DIVYASHAKTI LIMITED The decline in our financial performance was primarily attributable to higher tariffs and evolving trade measures in the United States, our principal export market, which adversely affected export volumes, customer sentiment, and overall demand for both our granite and engineered quartz products. Nevertheless, we remained focused on preserving our financial strength through prudent cost management, operational discipline, and efficient working capital management while continuing to invest in initiatives that will support sustainable long-term growth. Looking ahead, we are focused on expanding our global footprint and strengthening our presence in the domestic market, investing in state-of-the-art manufacturing capabilities, and enhancing our customer-centric approach. We are also committed to strengthening our human capital, governance frameworks, and digital infrastructure to sustain long-term stakeholder value. This journey would not be possible without the unwavering support of our shareholders, the commitment of our employees, and the trust of our customers and partners. On behalf of the Board of Directors and the management team, I extend my heartfelt gratitude to each of you. As we step into the future, we do so with renewed conviction, strategic clarity, and a steadfast commitment to excellence. Warm regards, N. Hari Hara Prasad Managing Director Divyashakti Limited Page No.5 DIVYASHAKTI LIMITED DIVYASHAKTI LIMITED CIN: L99999TG1991PLC012764 Regd. Office: 7-1-58, Divyashakti Apartments, Ameerpet, Hyderabad – 500016, Telangana, India. Telephone: 91-40-23730240, Fax No. +91-40-23730013, Website: www.divyashakti.com, Email: info@divyashakti.com, NOTICE NOTICE is hereby given that the Thirty-Fifth (35th) Annual General Meeting (“AGM”) of the Members of Divyashakti Limited will be held on Monday, 28th September 2026 at 11.00 a.m. (IST) through Video Conferencing (VC)/Other Audio-Visual Means (OAVM) to transact the following businesses. The proceedings of the Annual General Meeting (“AGM”) shall be deemed to be conducted at the Registered Office of the Company at 7-1-58, Divyashakti Apartments, Ameerpet, Hyderabad – 500016, Telangana, India. ORDINARY BUSINESS: 1. To receive, consider, and adopt the Audited Financial Statements of the Company for the financial year ended March 31, 2026, together with the Reports of the Board of Directors and the Statutory Auditors thereon. To consider and, if thought fit, to pass, the following resolution as an Ordinary Resolution: “RESOLVED THAT the Audited Financial Statements of the Company for the financial year ended 31st March, 2026, and the reports of the Board of Directors and Statutory Auditors thereon, as circulated to the Members, be and are hereby received, considered and adopted.” 2. To declare a dividend on the equity shares of the Company for the financial year ended 31st March, 2026. To consider and, if thought fit, to pass, the following resolution as an Ordinary Resolution: “RESOLVED THAT as recommended by the Board of Directors, a final dividend of ₹1.00 per fully paid-up equity share of face value ₹10 each, i.e., 10%, for the financial year 2025-26, be and is hereby declared and paid to the Members entitled thereto.” 3. Re-appointment of Smt Anuradha Anne (DIN No.02802437) who retires by rotation, as a director and in this regard, to consider and if thought fit, to pass the following resolution as an Ordinary Resolution: “RESOLVED THAT pursuant to the provisions of Section 152 and all other applicable provisions of the Companies Act, 2013 and the Rules made thereunder, (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force), Smt Anuradha Anne (DIN No.02802437), Director who retires by rotation at this Annual General Meeting and being eligible has offered herself for re-appointment as a Director, be and is hereby re-appointed as a Director of the Company, liable to retire by rotation.” Page No.6 DIVYASHAKTI LIMITED SPECIAL BUSINESS: 4. To approve material related party transactions: To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “RESOLVED THAT pursuant to Regulation 23 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disc [Showing first 8,000 characters — download PDF for full document]