Filing of transcipt of Chairman''s Statement made at the 38th AGM of the Company.

Ambika Cotton Mills Limited 02/10/2026 Ref.No.ACM/SE/32/2026-27 LISTING COMPLIANCE DEPARTMENT BSE Limited The National Stock Exchange Phiroze Jeejeebhoy of India Ltd. Exchange Tower, Dalal Street, Plaza, Plot No. C/1, G Block, Mumbai – 400001 Bandra Kurla Complex, Bandra Scrip Code: 531978 (E), Mumbai – 400051 Symbol: AMBIKCO Dear Sirs, 38th AGM of the Company – Filing transcript of Chairman’s Statement made at the meeting – Reg We are filing the transcript of Chairman’s Statement made at the 38th AGM of the Company held on Tuesday 29.09.2026 for records. For Ambika Cotton Mills Limited RadheShyam Padia Company Secretary Reg Office: 15/ 9A, Valluvar Street, Sivanandha Colony, Coimbatore- 641012 Phone No : 0422-2491501/2491502 Fax No : 0422-2499623 e Mail : ambika@acmills.in website : www.acmills.in CIN: L17115TZ1988PLC002269 Page | 1 CHAIRMAN’S ADDRESS 38th Annual General Mee(cid:415)ng – FY 2025–26 Respected Members, Fellow Directors, Dis(cid:415)nguished Shareholders, and my colleagues, Good a(cid:332)ernoon to all of you. It gives me great pleasure to welcome you to the 38th Annual General Mee(cid:415)ng of Ambika Co(cid:425)on Mills Limited. On behalf of the Board of Directors and the en(cid:415)re Ambika team, I would like to thank you for your con(cid:415)nued confidence, support and associa(cid:415)on with the Company. FY 2025–26 has been a year of renewed growth for Ambika. More importantly, we have been able to pursue this growth while remaining firmly anchored to the principles that have guided the Company for decades — financial discipline, product quality, customer rela(cid:415)onships, opera(cid:415)onal efficiency and prudent capital alloca(cid:415)on. Let me talk about the Financial Performance of the Company During FY 2025–26, our revenue from opera(cid:415)ons increased to approximately ₹780.95 crore, compared with ₹702.07 crore in the previous year, represen(cid:415)ng a growth of approximately 11%. Profit a(cid:332)er tax increased to ₹71.56 crore, compared with ₹65.74 crore in FY 2024–25, an increase of approximately 8.85%. Earnings per share increased from ₹114.83 to ₹125.00. Our export business also recovered meaningfully during the year. Export turnover increased to approximately ₹545.5 crore, accoun(cid:415)ng for around 72.9% of total turnover. Page | 2 This recovery is par(cid:415)cularly significant as it follows a decline in exports during the previous financial year. It reflects the strength of our customer rela(cid:415)onships and our con(cid:415)nued ability to serve interna(cid:415)onal markets with products where quality, consistency, traceability and sustainability ma(cid:425)er. Our Core Philosophy At Ambika, our philosophy has always been very simple: Our core principle is to build and sustain a strong balance sheet — solvency is our prime mo(cid:415)ve, it's what gives us the freedom to act decisively when opportuni(cid:415)es emerge and to stay steady through any market cycle. This philosophy has helped us build a strong balance sheet and has allowed us to make investments from our own internal resources rather than depending excessively on external borrowings. But financial discipline is only one part of the Ambika philosophy. We do not believe in simply selling spindle capacity. We believe in selling differen(cid:415)ated products. Our objec(cid:415)ve is not to chase volume for the sake of it. We focus on products and customers where quality, consistency, sustainability, traceability and reliability are valued. Our customers include leading interna(cid:415)onal brands and marquee clients who have demanding quality and sustainability requirements. These rela(cid:415)onships have been built over many years. Page | 3 Several of our customers have been associated with the Company for one to two decades, and approximately half of our clients have rela(cid:415)onships with us extending beyond 15 years. We consider these rela(cid:415)onships to be one of Ambika's most important intangible assets. Our strategy, therefore, is centred around: quality and consistency; technology and automa(cid:415)on; product differen(cid:415)a(cid:415)on; customer‐specific product development; opera(cid:415)onal efficiency; and disciplined capital alloca(cid:415)on. Traceability is also becoming increasingly important to global tex(cid:415)le brands. Our systems enable us, in many cases, to trace finished yarn back to the individual bale, ginner and origina(cid:415)ng farm. This level of traceability strengthens our engagement with interna(cid:415)onal customers and supports our posi(cid:415)oning in premium and value‐ added products. Capacity Expansion and Modernisa(cid:415)on During FY 2025–26, the Company invested approximately ₹69.96 crore, en(cid:415)rely from internal accruals. Our installed spindle capacity increased from approximately 108,288 spindles in financial year 2025 to 114,336 spindles Page | 4 during financial year 2026. Further 6,480 spindles commissioned on 26‐09‐2026 making the total spindles 120,816. The next important step in our manufacturing journey is the modernisa(cid:415)on of Unit 4. We are planning an investment of approximately ₹135 to ₹138 crore in new‐genera(cid:415)on machinery. This investment is also proposed to be funded en(cid:415)rely through internal accruals. The modernisa(cid:415)on will involve replacing approximately 43,000 exis(cid:415)ng spindles with 45,000 new‐genera(cid:415)on spindles. The objec(cid:415)ve of this investment is not simply to increase capacity. It is to fundamentally improve the manufacturing pla(cid:414)orm through higher produc(cid:415)vity, greater automa(cid:415)on, improved process control, be(cid:425)er product consistency and lower manpower requirements. The targeted opera(cid:415)onal date is March 2027. This investment reflects the way we have always approached expansion. We do not want to become larger merely for the sake of becoming large. We want to become be(cid:425)er, more produc(cid:415)ve, more automated, more energy‐efficient and more resilient. Financial Strength We should be par(cid:415)cularly pleased with the con(cid:415)nued strength of our balance sheet. Your Company remains debt‐free. The Company generated approximately ₹228.25 crore of net cash from opera(cid:415)ng ac(cid:415)vi(cid:415)es during FY 2025–26. Page | 5 This financial strength provides us with the ability to fund our planned investments substan(cid:415)ally through internal accruals while retaining financial flexibility. Inventory management is cri(cid:415)cal to our industry, as raw co(cid:425)on is a seasonal key input. We maintain adequate inventory levels to ensure uninterrupted produc(cid:415)on, meet sudden spikes in demand, and mi(cid:415)gate poten(cid:415)al supply‐chain disrup(cid:415)ons, while balancing quality and cost. For us, a strong balance sheet is not simply a financial metric. This is a strategic advantage. It allows us to make long‐term decisions, withstand periods of market vola(cid:415)lity and take decisions based on what is right for the business rather than what is dictated by short‐term financial constraints. Sustainability Sustainability con(cid:415)nues to be an integral part of our opera(cid:415)ng philosophy. We currently have 27.4 MW of installed wind power capacity and 8.33 MW of roo(cid:332)op solar capacity, primarily for cap(cid:415)ve consump(cid:415)on. Approximately 82–84% of our total energy requirement is met through renewable sources. During FY 2025–26, the Company es(cid:415)mates that approximately 41,011 tonnes of CO₂ emissions were avoided through renewable energy usage. Page | 6 We are also evalua(cid:415)ng opportuni(cid:415)es in Ba(cid:425)ery Energy Storage Systems, subject to technical feasibility, investment economics, opera(cid:415)ng requirements and the regulatory environment. Our approach to sustainability is prac(cid:415)cal and long term. We believe that investments in renewable energy and energy efficiency must not [Showing first 8,000 characters — download PDF for full document]