Financial Results for the Quarter ended June 30, 2026

Date: August 05, 2026 The Manager, Listing Department, Corporate Services Department National Stock Exchange of India Ltd., BSE Limited Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (East), Dalal Street Mumbai – 400051 Mumbai – 400001 Symbol: SARLAPOLY Security Code: 526885 Sub: Outcome of Board Meeting held on Wednesday, August 05, 2026 pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Dear Sir/Madam, Pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), we wish to inform you that the Board of Directors of the Company at its Meeting held today, i.e. Wednesday, August 05, 2026, has, inter alia, considered and approved the following: 1. Unaudited Financial Results The Board considered and approved the Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter ended June 30, 2026 together with the Limited Review Reports thereon issued by the Statutory Auditors of the Company, pursuant to Regulation 33 of the Listing Regulations. The Statutory Auditors, C N K & Associates LLP, have issued a Qualified Opinion on the Unaudited Standalone and Consolidated Financial Results for the quarter ended June 30, 2026. The qualification relates to the sale of 11% Non-Cumulative Redeemable Preference Shares held by the Company in its wholly owned subsidiary, SARLAFLEX INC. (United States of America), in respect of which the necessary regulatory approvals, write-off of the aforesaid loss and receipt of the balance sale consideration continue to remain awaited as on the date of the Limited Review Reports, which formed the basis of the qualified opinion. The Company has applied for the necessary regulatory approvals in respect of the said transaction. Pending receipt of such approvals, the sale proceeds continue to remain awaited as on date. The Management is pursuing the matter with the Authorised Dealer to obtain the necessary approvals at the earliest. Accordingly, pursuant to Regulation 33(3)(d) of the Listing Regulations, the Statement on Impact of Audit Qualifications (for Limited Review Report with Modified Opinion) is enclosed as Annexure- The Limited Review Reports and the Unaudited Financial Results are enclosed as Annexure-I. The Meeting commenced at 02:05 p.m. and concluded at 04:30 p.m. This Outcome of the Board Meeting will also be made available on the Company's website www.sarlafibers.com. This is for your information and records. For Sarla Performance Fibers Limited Mustafa Manasawala Company Secretary and Compliance Officer M. No. A76344 Encl.: As above Annexure - I Independent Auditor’s Review Report on the Quarterly and Year to Date Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended The Board of Directors Sarla Performance Fibers Limited 1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of Sarla Performance Fibers Limited (the “Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred to as the “Group”) for the quarter ended 30th June, 2026 and year to date result for the period 1st April, 2026 to 30th June, 2026 (the “Statement”), attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”). 2. This Statement, which is the responsibility of the Holding Company’s Management and approved by the Holding Company’s Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 “Interim Financial Reporting” (“Ind AS 34”), prescribed under Section 133 of the Companies Act, 2013, (‘the Act’) as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with the Listing Regulations. Our responsibility is to express a conclusion on the Statement based on our review. 3. We conducted our review of the Statement in accordance with the Standard on Review Engagement (SRE) 2410, “Review of Interim Financial information performed by the Independent Auditor of the Entity” issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. We also performed procedures in accordance with the Circular No. CIR/CFD/CMD1/44/2019 dated 29th March 2019 issued by the Securities and Exchange Board of India under Regulation 33(8) of the Listing Regulations, to the extent applicable. 4. The Statement includes the results of the subsidiaries as mentioned in Annexure to the Review Report. 5. Basis for Qualified Conclusion We draw attention to the fact that the Holding Company had, during the financial year 2024-25, recognized loss of Rs. 7,713.26 lakhs on sale of 1% Non-Cumulative Redeemable Preference Shares held in its wholly owned subsidiary, Sarla Flex Inc. The necessary regulatory approvals applied for by the Holding Company in respect of the said sale, the write-off of the aforesaid loss, and the receipt of sale proceeds thereof, were awaited as on the date of our audit report on the audited Consolidated Financial Results of the Group for the quarter and year ended 31st March, 2026, dated 22nd April, 2026, which formed the basis for the qualified opinion expressed by us therein. As at 30th June, 2026, an amount of Rs. 1,11,59,132.60 (Rs. 111.59 lakhs), representing the consideration recoverable towards the aforesaid sale, is carried under Trade Receivables. The aforesaid regulatory approvals, the write-off of the loss, and the receipt of the balance sale proceeds, continue to remain awaited as on the date of this report. Pending receipt of such approvals, we are unable to comment on the recoverability of the said balance and the consequential impact, if any, that this matter may have on the Statement for the quarter and year to date period ended 30th June, 2026. 3rd Floor, Mistry Bhavan, Dinshaw Vachha Road, Churchgate, Mumbai 400 020, India. Tel: +91 22 6623 0600 501-502, Narain Chambers, M.G. Road, Vile Parle (E), Mumbai 400 057, India. Tel: +91 22 6250 7600 website:www.cnkindia.com MUMBAI | BENGALURU | CHENNAI | VADODARA | AHMEDABAD | GIFT CITY | DELHI |GURUGRAM | KOLKATA | PUNE | DUBAI | SHARJAH | ABU DHABI 6. Based on our review conducted and procedures performed as stated in paragraph 3 above, except for the possible effects of the matter described in paragraph 5 above (Basis for Qualified Conclusion), nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in aforesaid Indian Accounting Standards (‘Ind AS’) specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement. 7. Emphasis of Matters: a) We draw a [Showing first 8,000 characters — download PDF for full document]