Surat Trade and Mercantile Ltd (530185)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Surat Trade's revenue was ₹49.3 Cr (+32.3% year on year, +7.3% on the previous quarter), and net profit ₹9.7 Cr (+11.9% year on year); the operating margin was 6.7%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹49.3 | +32.3% | +7.3% |
| Operating profit | ₹3.3 | +39.2% | +502.3% |
| Net profit | ₹9.7 | +11.9% | from loss |
| EPS (₹) | 0.44 | +12.8% | from loss |
| Operating margin | 6.7% | — | — |
📢 Recent Corporate Announcements
Surat Trade and Mercantile Limited has dispatched notices to shareholders who have not registered their email addresses, providing web links to the FY26 Annual Report and intimating the 80th Annual General Meeting (AGM) scheduled for September 22, 2026. The communication also serves as a regulatory reminder to physical security holders to update PAN, bank details, and nomination records pursuant to SEBI's Master Circular. The cut-off date used for dispatching these physical intimations was August 21, 2026. This is a standard statutory compliance filing with no impact on business operations or financials.
- 80th Annual General Meeting scheduled for Tuesday, September 22, 2026, at 03:30 PM IST via VC/OAVM
- Cut-off date for dispatch of physical intimation letters was August 21, 2026
- Shareholders reminded to update KYC details and mandate electronic mode for payouts under SEBI circular dated May 07, 2024
Surat Trade and Mercantile Limited has issued the notice for its 80th Annual General Meeting (AGM) scheduled for September 22, 2026, via video conferencing. Key ordinary and special business items include the adoption of FY26 financial statements and the re-appointment of Managing Director Mr. Alok P. Shah (who holds a 40.25% equity stake). Additionally, shareholders will vote on the re-appointment of Independent Director Mr. Deepak N. Shah for a second five-year term effective August 2027.
- 80th AGM scheduled for Tuesday, September 22, 2026, at 03:30 PM IST via VC/OAVM
- Ordinary business includes adoption of FY26 audited financial statements and director retirement by rotation
- Proposed re-appointment of MD Mr. Alok P. Shah, who holds 8,93,81,990 shares (40.25% stake)
- Proposed re-appointment of Mr. Deepak N. Shah as Independent Director for a 5-year term from August 11, 2027 to August 10, 2032
Surat Trade and Mercantile Limited has issued the notice for its 80th Annual General Meeting scheduled for September 22, 2026, via video conferencing. Key agenda items include the adoption of audited financial statements for FY26 and the re-appointment of Managing Director Mr. Alok P. Shah, who retires by rotation and holds a 40.25% equity stake (8,93,81,990 shares). Additionally, the company seeks shareholder approval to re-appoint Mr. Deepak N. Shah as an Independent Director for a second 5-year term starting August 11, 2027.
- 80th Annual General Meeting scheduled for Tuesday, September 22, 2026, at 03:30 PM IST via VC/OAVM
- Ordinary resolution proposed to adopt the Audited Financial Statements for FY ended March 31, 2026
- Re-appointment of Managing Director Mr. Alok P. Shah, who holds 8,93,81,990 shares (40.25% stake)
- Special resolution proposed for re-appointment of Independent Director Mr. Deepak N. Shah for a 5-year term from August 11, 2027 to August 10, 2032
Surat Trade and Mercantile Limited has submitted its Annual Report for FY 2025-26 along with the notice for its 80th Annual General Meeting (AGM). The AGM is scheduled to take place virtually on September 22, 2026, at 03:30 PM IST. The cut-off date for determining member voting eligibility is September 15, 2026, with remote e-voting active from September 19 to September 21, 2026. Key agenda items include adopting the FY26 audited financial statements and approving director re-appointments.
- 80th Annual General Meeting scheduled for Tuesday, 22nd September, 2026 at 03:30 P.M. (IST) via VC/OAVM.
- Cut-off date for e-voting established as Tuesday, 15th September, 2026.
- Remote e-voting window opens Saturday, 19th September, 2026 (9:00 AM) and ends Monday, 21st September, 2026 (5:00 PM).
- Special resolution proposed for re-appointment of Independent Director Deepak N. Shah for a 5-year second term starting 11th August, 2027.
The Board of Surat Trade and Mercantile Ltd has approved the re-appointment of Mr. Deepak N. Shah as an Independent Director for a second five-year term, starting August 11, 2027. Mr. Shah is a 76-year-old Chartered Accountant with over 40 years of experience in statutory, tax, and management audits. The re-appointment is subject to shareholder approval via a Special Resolution at the upcoming 80th Annual General Meeting. This move ensures continuity in the board's financial oversight as the company continues its pivot from textile manufacturing to commodity trading.
- Re-appointment of Mr. Deepak N. Shah for a second consecutive term of 5 years.
- The new term is effective from August 11, 2027, following the conclusion of the current term.
- Mr. Shah brings over 40 years of professional experience as a practicing Chartered Accountant.
- Approval is required from members at the 80th Annual General Meeting via a Special Resolution.
Surat Trade and Mercantile Ltd (STML) reported a 32.3% YoY increase in revenue to ₹49.35 Cr for Q1 FY27, continuing its pivot into commodity trading. Net profit rose 12% YoY to ₹9.67 Cr, though the bottom line remains heavily supported by 'Other Income' of ₹8.16 Cr. Notably, the company disclosed a regulatory breach regarding related-party transactions with its Managing Director in FY26, for which it filed a voluntary settlement application with SEBI on August 11, 2026. The outcome of this settlement remains a contingent liability.
- Revenue from operations increased 32.3% YoY to ₹49.35 Cr from ₹37.29 Cr.
- Net Profit grew 11.9% YoY to ₹9.67 Cr, compared to ₹8.64 Cr in the previous year's quarter.
- Other Income of ₹8.16 Cr accounted for 84.4% of the total Net Profit for the quarter.
- Voluntary settlement application filed with SEBI on August 11, 2026, regarding unauthorized related-party transactions.
- Earnings Per Share (EPS) improved to ₹0.44 from ₹0.39 YoY.
Surat Trade and Mercantile Ltd (STML) reported a 32.3% YoY increase in revenue to ₹49.35 Cr for Q1 FY27, with net profit rising 12% to ₹9.67 Cr. The company has fully transitioned to commodity trading, which now constitutes its sole operating segment. However, the company disclosed a voluntary settlement application filed with SEBI on August 11, 2026, regarding past non-compliance with Related Party Transaction (RPT) regulations involving the Managing Director. The financial impact of this settlement is currently unquantified and treated as a contingent liability.
- Revenue from operations grew 32.3% YoY to ₹49.35 Cr in Q1 FY27 compared to ₹37.29 Cr in Q1 FY26.
- Net profit increased to ₹9.67 Cr from ₹8.64 Cr in the year-ago period, yielding an EPS of ₹0.44.
- Other income contributed ₹8.16 Cr, representing approximately 14.2% of the total income for the quarter.
- Voluntary settlement application filed with SEBI on August 11, 2026, for RPT breaches involving MD Alok P. Shah during FY26.
- Board approved re-appointment of Independent Director Deepak N. Shah for a second 5-year term starting August 11, 2027.
Surat Trade and Mercantile Ltd has filed a voluntary settlement application with SEBI on August 11, 2026, regarding Material Related Party Transactions (RPTs) that exceeded regulatory thresholds in FY 2025-26. The transactions involved the Managing Director, Mr. Alok P. Shah, and were ratified by shareholders at an Extra-Ordinary General Meeting on August 10, 2026. While the company claims no immediate material impact, the final settlement amount to be paid to SEBI is currently undisclosed. This move follows a period where the company reported TTM revenue of Rs 111 Cr and a PAT of Rs 11 Cr.
- Voluntary settlement application filed with SEBI on August 11, 2026, under Settlement Proceedings Regulations, 2018.
- Shareholders ratified the Material Related Party Transactions at an EGM held on August 10, 2026.
- Transactions involved Managing Director Mr. Alok P. Shah during the Financial Year 2025-26.
- Company reported a TTM revenue of Rs 111 Cr against a market capitalization of Rs 107 Cr.
- Settlement amount is not yet determined and will be disclosed upon SEBI's final order.
Surat Trade and Mercantile Ltd (STML) reported a ransomware threat within its IT systems on August 7, 2026. The company stated that containment and mitigation measures were immediately initiated upon detection. According to the management's assessment, there has been no loss of data, no compromise of sensitive information, and no material impact on the company's operations. This is critical for a firm with TTM revenue of ₹111 Cr that is increasingly reliant on digital commodity trading platforms.
- Ransomware threat detected in IT systems on August 7, 2026
- Management reports 0% loss of data or sensitive information based on current assessment
- No material impact on operations for a company with ₹111 Cr TTM revenue
- Company is currently strengthening its cyber security framework to prevent recurrence
Surat Trade and Mercantile Ltd has issued a corrigendum to its EGM notice scheduled for August 10, 2026, to rectify disclosures regarding material transactions. The company identified that aggregate transactions during the year reached ₹8.16 Cr, which exceeds the 10% materiality threshold of its FY25 consolidated turnover (₹70.90 Cr). A significant portion of this involves the sale of Arts & Artifacts totaling ₹8.11 Cr. Shareholder approval is required as these transactions represent approximately 11.5% of the company's FY25 revenue.
- EGM scheduled for August 10, 2026, to ratify transactions exceeding materiality thresholds
- FY25 consolidated turnover confirmed at ₹70.90 Cr, setting the 10% materiality threshold at ₹7.09 Cr
- Aggregate transactions for the year totaled ₹8.16 Cr, exceeding the threshold by ₹1.07 Cr
- Specific sale of Arts & Artifacts across two dates in 2025 valued at ₹8.11 Cr
- Remuneration of ₹4.80 Lakhs paid to Mr. Alok P. Shah during FY26 disclosed
Surat Trade and Mercantile Ltd (STML) has issued a notice for an Extra-Ordinary General Meeting (EGM) on August 10, 2026. Key proposals include increasing the limit for loans and investments under Section 186 to ₹250 Crore and re-appointing Suhail P. Shah as Whole-time Director for 5 years. Notably, the company seeks to ratify the sale of three artworks to Managing Director Alok P. Shah for ₹8.11 Crore, which generated a profit of ₹5.09 Crore. The company cited profit booking and liquidity needs as the rationale for the asset sale.
- Proposed increase in Section 186 limits for loans, guarantees, and investments up to ₹250 Crore
- Ratification of the sale of 3 Arts and Artifacts to MD Alok P. Shah for ₹8.11 Crore
- Realized profit of ₹5.09 Crore from the art sale over a book value of ₹3.02 Crore
- Re-appointment of Suhail P. Shah as Whole-time Director for a 5-year term effective September 1, 2026
- Promoter and director group holds a combined 68.45% stake in the company
Surat Trade and Mercantile Ltd has scheduled its first Extra-Ordinary General Meeting (EGM) for FY 2026-27 on August 10, 2026. The meeting will address the re-appointment of Mr. Suhail P. Shah as Whole-Time Director for a 5-year term. Crucially, the company is seeking shareholder approval to increase limits for investments, loans, and guarantees under Section 186 of the Companies Act. Additionally, the board is seeking ratification for material related party transactions (RPT) involving Managing Director Mr. Alok P. Shah for the 2025-26 financial year.
- Extra-Ordinary General Meeting (EGM) scheduled for August 10, 2026, via Video Conferencing.
- Cut-off date for shareholder voting eligibility set for July 18, 2026.
- Proposed re-appointment of Mr. Suhail P. Shah as Whole-Time Director for a 5-year tenure.
- Agenda includes increasing limits for making investments, providing loans, and giving guarantees under Section 186.
- Ratification sought for material Related Party Transactions with MD Mr. Alok P. Shah for FY 2025-26.
Surat Trade and Mercantile Ltd has scheduled an Extra-Ordinary General Meeting (EGM) for August 10, 2026, to address several key governance and financial matters. The board is seeking shareholder approval for the re-appointment of Mr. Suhail P. Shah as Whole-Time Director for a 5-year term. Crucially, the company is also requesting an increase in limits for investments, loans, and guarantees under Section 186, alongside the ratification of material related party transactions with the Managing Director that exceeded prescribed limits during FY 2025-26. The cut-off date for voting eligibility is July 18, 2026.
- Extra-Ordinary General Meeting (EGM) scheduled for August 10, 2026
- Cut-off date for shareholder voting eligibility is July 18, 2026
- Re-appointment of Whole-Time Director for a fixed term of 5 years
- Ratification of material related party transactions with the MD for FY 2025-26
Financial Performance
Revenue Growth by Segment
The company generated INR 68.64 Cr in revenue from its new commodity trading segment in FY25. Historically, the textile manufacturing segment saw revenue grow 44.8% in FY18 (INR 203.16 Cr) and 8.2% in FY19 (INR 219.82 Cr) before the strategic pivot to trading.
Geographic Revenue Split
The company primarily serves the domestic Indian market, particularly through its manufacturing base in Surat, Gujarat. Specific regional percentage splits for the new trading business are not disclosed.
Profitability Margins
Historical manufacturing margins showed a declining trend: PBILDT margin was 10.45% in FY17, 7.84% in FY18, and 5.49% in FY19. PAT margin fluctuated from 11.9% in FY17 to 4.03% in FY18 and 5.53% in FY19.
EBITDA Margin
Historical PBILDT was INR 12.07 Cr in FY19, representing a 5.49% margin. This was a 24.2% YoY decrease from INR 15.93 Cr in FY18, reflecting susceptibility to raw material price fluctuations in the textile business.
Capital Expenditure
Historical manufacturing capacity includes 25,000 MTPA for polyester chips and 5,000 MTPA for POY. Specific planned CapEx for FY26 is not disclosed in available documents.
Credit Rating & Borrowing
Credit rating is currently not applicable as the company has no debt instruments or fixed deposits as of March 31, 2025. Historically, it held a CARE BBB-; Stable rating in 2019 with a 0.00x gearing ratio.
Operational Drivers
Raw Materials
Key raw materials for manufacturing include Purified Terephthalic Acid (PTA) and Mono-ethylene Glycol (MEG). For the trading segment, the company deals in various commodities via exchanges.
Import Sources
Raw materials like PTA and MEG are largely procured from domestic suppliers within India, reducing international shipping risks.
Capacity Expansion
Current installed capacity is 25,000 MTPA for polyester chips and 5,000 MTPA for partially oriented yarn (POY). No specific expansion timeline is provided.
Raw Material Costs
Raw material costs are a major driver; historical profitability was constrained by the susceptibility to fluctuations in PTA and MEG prices, which are crude oil derivatives.
Manufacturing Efficiency
The company conducts physical verification of Property, Plant, and Equipment (PPE) in a phased manner over 3 years to ensure asset integrity.
Logistics & Distribution
The company leverages its strategic location in Surat, Gujarat, a major textile hub, to optimize distribution to the domestic market.
Strategic Growth
Growth Strategy
The company is pivoting from textile manufacturing to commodity trading (commenced Q3 FY23) to diversify revenue. This strategy involves buying/selling via exchanges and using derivatives to hedge price risks, aiming for higher scalability than traditional manufacturing.
Products & Services
Polyester chips, partially oriented yarn (POY), and traded commodities (including commodity-related business activities).
New Products/Services
Commodity trading and related activities, which contributed INR 68.64 Cr to revenue in FY25.
Market Expansion
The company is expanding its presence in the commodity mercantile space, moving beyond its traditional textile manufacturing roots.
Market Share & Ranking
The company operates in a highly competitive and fragmented textile industry, which translates into limited pricing power.
External Factors
Industry Trends
The textile industry is highly fragmented and competitive. The company is positioning itself for the future by diversifying into commodity trading, which offers a different risk-reward profile than capital-intensive manufacturing.
Competitive Landscape
Key competitors include other domestic polyester and yarn manufacturers and commodity trading firms in a highly fragmented market.
Competitive Moat
The company's moat is built on its experienced promoters and a 75-year history (incorporated 1945) in the textile business, providing deep industry relationships and market knowledge.
Macro Economic Sensitivity
The company is sensitive to inflation and crude oil prices, as PTA and MEG are petroleum-based derivatives.
Regulatory & Governance
Industry Regulations
Operations are governed by SEBI (Prohibition of Insider Trading) Regulations and SEBI (LODR) Regulations. The company recently updated its Whistle Blower and Insider Trading policies to align with new regulatory standards.
Environmental Compliance
The company follows 'Go Green' initiatives by digitizing shareholder communications to reduce paper waste.
Legal Contingencies
The company reported zero pending litigations as of March 31, 2025, and no penalties or strictures from SEBI or Stock Exchanges in the last 3 years.
Risk Analysis
Key Uncertainties
The primary uncertainty is commodity price risk in the new trading segment, which could impact the INR 68.64 Cr revenue stream if hedging is ineffective.
Geographic Concentration Risk
High concentration in the domestic Indian market, particularly the Surat textile cluster.
Third Party Dependencies
Dependency on domestic suppliers for PTA and MEG and on commodity exchanges for the trading business.
Technology Obsolescence Risk
The company identified a technical gap where database-level audit trails were not enabled, though no tampering was found.
Credit & Counterparty Risk
The company manages credit risk through its mercantile trading procedures and exchange-based settlements.
