Key Quantitative Figures (Standalone for Q2 FY27)

  • Revenue from operations: ₹112.20 crore (Q2 FY26: ₹79.89 crore)
  • Total Income: ₹112.70 crore (Q2 FY26: ₹80.05 crore)
  • Profit Before Tax: ₹7.08 crore (Q2 FY26: ₹5.44 crore)
  • Profit After Tax: ₹5.19 crore (Q2 FY26: ₹3.90 crore)
  • Basic EPS: ₹0.59 (Q2 FY26: ₹0.66)
  • Paid-up Equity Share Capital: ₹88.28 crore (post-bonus issue)

Key Quantitative Figures (Standalone for H1 FY27)

  • Revenue from operations: ₹189.67 crore (H1 FY26: ₹171.80 crore)
  • Total Income: ₹190.77 crore (H1 FY26: ₹172.27 crore)
  • Profit Before Tax: ₹11.90 crore (H1 FY26: ₹8.60 crore)
  • Profit After Tax: ₹8.28 crore (H1 FY26: ₹6.18 crore)
  • Basic EPS: ₹1.09 (H1 FY26: ₹1.04)

Key Quantitative Figures (Consolidated for Q2 FY27)

  • Revenue from operations: ₹143.06 crore
  • Total Income: ₹143.56 crore
  • Profit Before Tax: ₹10.98 crore
  • Profit After Tax: ₹7.99 crore
  • Basic EPS: ₹0.91

Key Quantitative Figures (Consolidated for H1 FY27)

  • Revenue from operations: ₹220.52 crore
  • Total Income: ₹221.63 crore
  • Profit Before Tax: ₹15.80 crore
  • Profit After Tax: ₹11.08 crore
  • Basic EPS: ₹1.46

Dates of Action

  • Board Meeting: November 7, 2026 (commenced 4:15 PM, concluded 4:30 PM IST)
  • Falcon Yarns Acquisition Effective Date: August 19, 2026
  • Bonus Issue Allotment Date: September 29, 2026
  • IPO Listing Date: July 6, 2026
  • Demise of Executive Director: November 6, 2026

Parties Involved

  • Statutory Auditors: M/s. S N D K & Associates LLP, Chartered Accountants (FRN: W100060)
  • Acquired Entity: Falcon Yarns Private Limited (wholly-owned subsidiary)
  • New Appointee: Mr. Shyamsunder Kiranbhai Panchal as Independent Director of Falcon Yarns
  • Key Personnel: Mr. Vivek Rasiklal Gothi (Whole Time Director, DIN: 03149400), Mr. Divyang Jashvantbhai Patel (Chairman and Director, DIN: 03148915), Mr. Jashwant Valjibhai Patel (deceased Executive Director)

Purpose and Rationale

  • The acquisition of Falcon Yarns was completed as one of the objects of the IPO to grow and expand the business, enhance production capacity, broaden customer base, and strengthen the order book.
  • The bonus issue of 1:1 was made to shareholders by capitalising securities premium.

Financial and Operational Impact

  • The acquisition of Falcon Yarns has been accounted for using the acquisition method under Ind AS 103. Falcon's results are consolidated from August 19, 2026.
  • The company operates in a single business segment: "manufacturing of 100% Cotton Yarns and Cotton Bales".
  • The cash flow statement shows net cash used in operating activities was ₹(14.81) crore (standalone) and ₹(26.67) crore (consolidated) for H1 FY27.

Capital Structure Impact

  • Post-IPO and bonus issue, the paid-up equity share capital increased from ₹31.64 crore to ₹88.28 crore.
  • The acquisition was funded through IPO proceeds via cash consideration.

Cash Flow Implications

  • Significant cash outflow for investing activities due to the acquisition of Falcon Yarns (₹124.43 crore standalone, ₹111.57 crore consolidated).
  • Cash inflow from financing activities primarily from IPO proceeds and borrowings (₹173.07 crore standalone, ₹172.24 crore consolidated).

Audit Qualification

  • The statutory auditors issued a qualified conclusion on both standalone and consolidated results due to the lack of physical verification of cash on hand amounting to ₹39.53 crore (7.82% of total assets) as of September 30, 2026.
  • Management stated the cash is held for cotton procurement and that ₹21.61 crore was deposited in the bank between October 1 and November 6, 2026. They are unable to estimate the impact until a physical verification and reconciliation are completed.

IPO Proceeds Utilization (as of September 30, 2026)

  • Acquisition of Falcon Yarns: ₹111.51 crore (fully utilized)
  • Working capital for Falcon Yarns: ₹10.00 crore (fully utilized)
  • General corporate purposes: ₹40.44 crore (out of ₹40.47 crore)
  • Issue expenses: ₹7.01 crore (out of ₹8.02 crore)
  • Total utilized: ₹168.96 crore out of ₹170.00 crore raised
  • No deviation from stated objects; monitoring agency report was reviewed.

Other Disclosures

  • The company noted the sad demise of Mr. Jashwant Valjibhai Patel, Executive Director, on November 6, 2026.
  • The Board recommended the appointment of Mr. Shyamsunder Kiranbhai Panchal as an Independent Director on the board of Falcon Yarns.
  • The equity shares were listed on NSE and BSE on July 6, 2026.