Company Overview
Alok Industries Limited (NSE: ALOKINDS, BSE: 521070) reported its financial results and corporate updates for FY 2025-26, highlighting continued challenges amid ongoing restructuring under the NCLT-approved resolution plan.
Financial Performance
Alok Industries reported a standalone net loss of ₹779.81 crore for FY26, slightly wider than the previous year's loss of ₹768.81 crore. Revenue declined marginally by 0.88% to ₹3,525.30 crore, with domestic sales growing 3.70% but exports falling 15.59% due to geopolitical tensions and US tariffs. The company recognized an exceptional gain of ₹30.79 crore from insurance claims and asset sales related to tornado damage at the Silvassa plant in July 2024. Accumulated losses reached ₹23,648.21 crore as of March 31, 2026.
NCLT Resolution Plan Status
The company continues to operate under the Resolution Plan approved by NCLT on March 8, 2019, with resolution applicants obtaining joint control on September 14, 2020. Outstanding debt of ₹17,384.02 crore assigned to resolution applicants carries no interest for the first 8 years from the closing date, overriding Ind AS requirements for fair value measurement and imputed interest cost.
Management and Governance Changes
Significant management changes occurred during FY26, including the resignation of CEO Harsh Bapna and appointment of new CFO Jinendra Kumar Jain and Company Secretary Anshul Kumar Jain. The board proposes appointing Shri Rajbir Saini as Manager for 3 years from April 2026 with a remuneration package of up to ₹1.75 crore per annum. Shareholders will vote on continuing Shri Hemant Desai as Non-Executive Director post his 75th birthday and ratifying cost auditor remuneration of ₹1.20 lakh for FY 2026-27.
Related Party Transactions
Substantial transactions with related parties were disclosed, including ₹940.93 crore in job work services and ₹320.77 crore in preference dividends paid to Reliance Industries Limited. The company has significant outstanding balances with Reliance Group entities, including preference shares of ₹3,543.78 crore and borrowings of ₹17,384.02 crore.
Operational and Regulatory Compliance
The company filed its annual report with BSE and NSE as required by SEBI Listing Regulations. Manufacturing facilities at Vapi and Silvassa continue operations with various certifications. The 39th Annual General Meeting is scheduled for July 24, 2026, to address special business items including director appointments and managerial remuneration approvals.
Outlook and Going Concern
Despite accumulated losses, the financial statements were prepared on a going concern basis considering improved market conditions, expected growth in the textile industry, and continued support under the resolution plan. The auditors issued an unmodified opinion with emphasis on the resolution plan's override of Ind AS requirements.