Cigarettes & Tobacco Stock Concludes 2nd EGM of FY 2025-26; Clear Rs 300 Cr With Major Strategic Approvals

Members, directors, and business representatives attended Elitecon International Limited's (EIL) second Extra-Ordinary General Meeting (EGM) for the fiscal year 2025-2026 on Friday, August 29, 2025, at its Talegaon, Nashik location. Several important special resolutions were considered and adopted during the meeting, which was presided over by Executive Director Mr. Dayanand Ray. The shareholders agreed to amend the Objects Clause of the Memorandum of Association, approved investments, loans, guarantees, and securities above the specified limits of Section 186, and approved the proposal to raise up to Rs 300 crore through Qualified Institutions Placement (QIP).

"The proceeds raised through the QIB issue will be strategically deployed towards expansion and growth in fast-growing FMCG sector. This is proposed to be achieved through acquisition of a substantial stake in Prime Place Spices Trading L.L.C., Dubai. The objective of the acquisition is to strengthen our footprint in the consumer goods space by leveraging synergies, expanding market presence and driving long-term value creation. This investment marks a pivotal step in our growth strategy and reflects our commitment to unlocking new avenues of sustainable and scalable growth for our shareholders," said Elitecon International in a stock exchange filing.

The objective of the QIP is "to acquire high-potential FMCG companies through our wholly owned subsidiary. This strategic investment aims to expand our market presence and leverage operational synergies. It marks a key milestone in our growth journey, focused on long-term value creation for shareholders," Elitecon International confirmed in a report.

To further reinforce its board, the company has authorized the nomination of Mr. Susanta Kumar Panda and Mr. Venkata Ramesh Penumaka as independent directors. In order to bring operations closer to its administrative and manufacturing base, the members also approved a resolution to move the registered office from Delhi to Maharashtra. Between August 26 and 28, 2025, voting was done remotely via CDSL.

With record standalone sales of Rs 199.23 crore, which represents a strong 302% quarter-on-quarter growth, EIL has demonstrated an outstanding financial performance during the quarter ended in June 2025. The company's remarkable EBITDA growth of Rs 20.93 crore, or 325%, highlighted its effective cost control and operational efficiency. Furthermore, net profit increased by an astounding 350% from quarter to quarter to Rs 20.41 crore.

With sales of Rs 524.87 crore and a robust 68% quarter-on-quarter growth, EIL had an outstanding consolidated performance in Q1FY26. In addition, the company reported a remarkable EBITDA of Rs 73.37 crore, demonstrating steady operational effectiveness and an improvement of 68% over the prior quarter. Additionally, net profit climbed 68% sequentially to Rs 72.08 crore.

On Friday, the shares of Elitecon International ended at a lower circuit limit at Rs 327.95 per share with a downside gap of 5%. The company's market cap reached Rs 52,422.81 Cr. The stock has performed significantly over the past year and recovered well. The company had an incredible return of almost 25,700% in a single year, rising to its current market price of Rs 327.95 from its 52-week low of Rs 1.27 on August 29, 2024. It is now trading below its 52-week high of Rs 422.65, which was reached on August 25, 2025, although it was one of the period's most notable gains.