Company Overview
Alok Industries Limited, operating under an NCLT-approved resolution plan, reported its FY26 financial performance with continued challenges despite completing all resolution plan requirements.
Financial Performance
Alok Industries reported standalone revenue of ₹3,525.30 crore for FY26, representing a 0.88% decline from the previous year's ₹3,556.59 crore. Domestic sales showed improvement with 3.70% growth to ₹2,813.02 crore, but export sales declined significantly by 15.59% to ₹712.28 crore, primarily due to US tariffs and weak global demand conditions.
The company reported a net loss of ₹779.81 crore for FY26, slightly wider than the ₹768.81 crore loss in FY25. Despite the losses, the company maintained positive Operating EBITDA of ₹48.14 crore, showing a 13.14% improvement from the previous year. Accumulated losses reached ₹23,648.21 crore as of March 31, 2026, reflecting the company's ongoing financial challenges.
Resolution Plan Status
The company successfully completed all steps under the NCLT-approved resolution plan, with Reliance Industries Limited and JM Financial Asset Reconstruction Company Limited obtaining joint control. The resolution plan included assigned debt of ₹17,384.02 crore to resolution applicants, which does not carry interest for the first 8 years from the closing date of September 14, 2020.
Key Business Segments
The company operates primarily in textiles, with segment performance showing mixed results: Apparel Fabric grew 18.81% to ₹1,075.75 crore, while Home Textile declined 12.28% to ₹711.12 crore, Polyester declined 4.83% to ₹1,040.81 crore, and Spinning declined 4.99% to ₹644.84 crore.
Related Party Transactions
Significant transactions with related parties included sales of goods and services totaling ₹1,038.66 crore to Reliance group entities, purchases of ₹205.77 crore, and preference dividend payments of ₹320.77 crore to Reliance Industries. Outstanding balances include ₹3,543.78 crore in preference shares and ₹17,384.02 crore in borrowings from related parties.
Management and Governance Changes
The company underwent several key managerial changes during FY26, including the appointment of new CFO Jinendra Kumar Jain and Company Secretary Anshul Kumar Jain. The board is seeking shareholder approval for the continuation of Non-Executive Director Hemant Desai post his 75th birthday as required by SEBI regulations. Additionally, the company appointed Rajbir Saini as Manager for three years with annual remuneration up to ₹1.75 crore.
AGM and Shareholder Matters
The 39th Annual General Meeting is scheduled for July 24, 2026, with agenda items including ratification of cost auditor remuneration for FY27 and approval of managerial appointments. The board recommended no dividend for FY26 due to continued losses.
Going Concern Assessment
Despite accumulated losses and negative net worth of ₹19,675.96 crore, the financial statements have been prepared on a going concern basis considering cash flow projections, improved market conditions, and expected growth in the textile industry. The company maintains a CARE AA+ (Stable) credit rating for long-term facilities.