Board clears results, ESOP Plan 2026 with 39,75,150 options and a postal ballot
Sarla's board approved unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026.
By ScoutQuest · · 3 min read
| Line item | Latest | Year ago | YoY | Prev qtr | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 11,988.50 | 10,710.74 | +11.9% | 11,326.43 | +5.8% |
| Total income | 11,739.80 | 11,747.21 | −0.1% | 14,112.40 | −16.8% |
| Profit before tax | 1,206.79 | 2,463.36 | −51% | 4,629.75 | −73.9% |
| Profit after tax | 1,150.34 | 1,903.92 | −39.6% | 3,728.24 | −69.1% |
| Total comprehensive income | 1,166.81 | 1,866.47 | −37.5% | 4,483.32 | −74% |
| Basic EPS | 1.45 | 2.27 | −36.1% | 4.72 | −69.3% |
- Total income
- Latest 11,739.80; Year ago 11,747.21 (−0.1%); Prev qtr 14,112.40 (−16.8%)
- Profit after tax
- Latest 1,150.34; Year ago 1,903.92 (−39.6%); Prev qtr 3,728.24 (−69.1%)
- Period
- Quarter Ended 30-Sep-26
Also decided at the meeting
- Approved SPFL ESOP Plan 2026 via SPFL ESOP Trust (secondary acquisition only) with a pool of 39,75,150 Options, subject to Members' special resolution by postal ballot.
- Recommended withdrawal of the ESOP Scheme 2025 (approved March 6, 2025); no options granted or shares allotted under it.
- Recommended extension of the 2026 Scheme to employees and directors of subsidiary companies within the same 39,75,150 option pool.
- Recommended secondary acquisition of Company shares by the SPFL ESOP Trust and interest-free, unsecured loan to the Trust, capped at 5% of paid-up capital and free reserves.
- Approved constitution of SPFL ESOP Trust with initial settlement of ₹1,00,000 and Onetrust Managers Private Limited as sole corporate Trustee.
- Approved Postal Ballot Notice; appointed CS Vyoma Desai as Scrutinizer; NSDL e-voting from November 5, 2026 to December 4, 2026, cut-off date October 30, 2026.
Auditor's review
Conclusion: Unmodified
- Emphasis of matter: sale of 11.1% preference shares in Sarlaflex Inc.; proceeds received in Q2 FY27 but transaction still pending regulatory ratification.
- Emphasis of matter: subsidiary Sarlaflex Inc. results prepared on going concern basis despite suspension of manufacturing since December 2017 and negative net worth.
- Emphasis of matter: SOHL's investments in three Joint Ventures not consolidated due to disputes/non-receipt of financials; auditor unable to comment on impact.
- Other matter: two subsidiaries' interim results (total assets Rs. 4,361.27 Lakhs) not reviewed by any auditor; certified by management.
Notes to the results
- Note 2: Company sold 11.1% preference shares in Sarlaflex INC. for USD 11,000 per share (face value USD 1,000,000 each); proceeds received, regulatory ratification pending.
- Note 3: Middle East geopolitical tensions raised freight and raw material costs; one-time flood-related loss of ₹2.31 crore at Silvassa plant.
Board meeting outcome, November 03, 2026
The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026, and took on record the limited review reports of the statutory auditors. Alongside the results, the board cleared a fresh employee stock option plan for 2026, the withdrawal of the 2025 plan, and a postal ballot to seek shareholder approval.
Results at a glance
All figures below are in Rs. lakhs, as printed in the results statement.
- Consolidated 'Revenue from operations': 11,988.50 for the quarter ended September 30, 2026.
- Consolidated 'Profit after tax': 1,150.34 for the quarter.
- Standalone 'Profit after tax': 1,199.94 for the quarter.
The notes to the results state that geopolitical tensions in the Middle East led to higher freight and raw material costs during the quarter, and that the company incurred a one-time flood-related loss of ₹2.31 crore at its Silvassa plant.
ESOP Plan 2026 and the 2025 plan
- The board approved the Sarla Performance Fibers Limited Employee Stock Option Plan 2026, with a common pool of 39,75,150 options, to be run through the SPFL ESOP Trust by way of secondary acquisition only, meaning purchase of existing shares on a recognised stock exchange.
- The scheme is proposed to be extended to eligible employees and directors of subsidiary companies, present and future.
- The company may provide money to the trust, from time to time and in tranches, as an interest-free, unsecured loan. The value of shares purchased plus the money provided cannot exceed 5% of the aggregate of paid-up capital and free reserves under Rule 16(1)(d).
- The trust is being settled with an initial amount of ₹1,00,000, with Onetrust Managers Private Limited as the sole corporate trustee.
- The board also recommended withdrawal of the Employee Stock Option Plan (ESOP) Scheme 2025 and its extension to subsidiary employees; under that plan no option was granted and no share was allotted.
- These proposals need approval of the members by Special Resolution through postal ballot. No options were granted by the board at this meeting.
The auditor's review conclusion
The limited review was carried out by C N K & Associates LLP. A review gives only moderate assurance and is not an audit opinion. The conclusion was not modified, but the auditors drew attention to several matters:
- The sale of 11.1% Non-Cumulative Redeemable Preference Shares held by the company in its wholly owned subsidiary, Sarla Flex Inc. The sale consideration was credited to the company's bank account during the quarter ended September 30, 2026, but the transaction continues to be pending before the regulator for ratification.
- Sarlaflex Inc. prepares its interim financial results on a 'going concern' basis even though its manufacturing operations have been suspended since December 2017 and its net worth has become negative.
- Investments made by Sarla Overseas Holdings Limited in joint ventures are not consolidated on account of non-resolution of disputes, and the auditors said they were unable to comment on the impact of the same on the consolidated results.
The auditors also stated that the statement includes unaudited interim financial information for certain subsidiaries that has not been reviewed by any auditor and was furnished by management.
Points a retail investor may want to track
- Shareholder approval through the postal ballot is still required for the ESOP Plan 2026 and the related trust resolutions, so the scheme takes effect only after that vote.
- The auditors' emphasis-of-matter notes relate to subsidiary-level issues, which matter when reading the consolidated numbers rather than the standalone ones.
Also from Sarla Performance Fibers
Board approves ESOP Plan 2026 with 39,75,150-option pool; members to vote by postal ballot
3 Nov 2026
Board meeting on November 03, 2026 to consider Q2/H1 results and ESOP 2026
29 Oct 2026
More numbers
- Common ESOP pool approved under SPFL ESOP Plan 202639,75,150 Options
- Initial settlement amount of SPFL ESOP Trust₹1,00,000
- Cap on share purchase value plus money provided to trust5%
- Standalone Profit after tax for the quarter1,199.94
- One-time flood-related loss at Silvassa plant₹2.31 crore
- Stake in Non-Cumulative Redeemable Preference Shares of Sarla Flex Inc sold11.1%
- Total income, latest quarter11,739.80 (Rs. in lakhs)
- Total income, year-ago quarter11,747.21 (Rs. in lakhs)
- Total income, previous quarter14,112.40 (Rs. in lakhs)
- Total comprehensive income, latest quarter1,166.81 (Rs. in lakhs)
- Total comprehensive income, year-ago quarter1,866.47 (Rs. in lakhs)
- Total comprehensive income, previous quarter4,483.32 (Rs. in lakhs)
- Profit after tax, latest quarter1,150.34 (Rs. in lakhs)
- Profit after tax, year-ago quarter1,903.92 (Rs. in lakhs)
- Profit after tax, previous quarter3,728.24 (Rs. in lakhs)
- Revenue from operations, latest quarter11,988.50 (Rs. in lakhs)
- Revenue from operations, year-ago quarter10,710.74 (Rs. in lakhs)
- Revenue from operations, previous quarter11,326.43 (Rs. in lakhs)
- Profit before tax, latest quarter1,206.79 (Rs. in lakhs)
- Profit before tax, year-ago quarter2,463.36 (Rs. in lakhs)
- Profit before tax, previous quarter4,629.75 (Rs. in lakhs)
Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.