Financial Performance (Standalone)

Quarter Ended September 30, 2026 (Unaudited):

  • Revenue from operations: ₹86.11 crore (Q2 FY26: ₹1.69 crore)
  • Other income: ₹0.32 crore
  • Total income: ₹86.42 crore
  • Total expenses: ₹123.28 crore
  • Loss before exceptional items and tax: ₹(36.85) crore
  • Exceptional items: ₹13.69 crore (profit on sale of asset)
  • Loss before tax: ₹(23.17) crore
  • Tax expense: Nil
  • Net loss after tax: ₹(23.17) crore
  • Other comprehensive loss: ₹(0.03) crore
  • Total comprehensive loss: ₹(23.19) crore
  • EPS (basic & diluted): ₹(4.21) per share

Half Year Ended September 30, 2026 (Unaudited):

  • Revenue from operations: ₹171.74 crore (H1 FY26: ₹3.51 crore)
  • Other income: ₹0.65 crore
  • Total income: ₹172.39 crore
  • Total expenses: ₹239.87 crore
  • Loss before exceptional items and tax: ₹(67.48) crore
  • Exceptional items: ₹13.69 crore
  • Loss before tax: ₹(53.79) crore
  • Net loss after tax: ₹(53.79) crore
  • Total comprehensive loss: ₹(53.84) crore
  • EPS (basic & diluted): ₹(9.78) per share

Balance Sheet Position (Standalone as at September 30, 2026)

  • Total assets: ₹1,309.34 crore (Mar 31, 2026: ₹1,303.07 crore)
  • Equity share capital: ₹55.00 crore
  • Other equity: ₹219.02 crore (Mar 31, 2026: ₹272.86 crore)
  • Non-current borrowings: ₹449.23 crore
  • Current borrowings: ₹391.53 crore
  • Assets classified as held for sale: ₹443.53 crore
  • Cash and cash equivalents: ₹10.64 crore

Key Financial Ratios (Standalone)

  • Debt equity ratio: 3.07 times
  • Debt service coverage ratio: (0.11) times
  • Interest service coverage ratio: (1.50) times
  • Current ratio: 1.16 times
  • Operating margin: (21.52)%
  • Net profit margin: (31.32)%

Management Changes

  • Ms. Surbhi Dinesh Chachada resigned as Company Secretary and Key Managerial Personnel effective close of business hours on November 13, 2026 due to personal reasons.
  • Ms. Priya Pandey appointed as Company Secretary and Compliance Officer effective November 14, 2026. She holds no equity shares in the company.

Regulatory and Compliance Matters

  • NSE and BSE have imposed fines on the company for delays in compliance with Listing Regulations.
  • Company has filed an Interlocutory Application with NCLT Mumbai Bench seeking extension/exemption for statutory filings up to March 31, 2026 and quarterly results up to March 31, 2024.
  • Company has filed waiver applications with stock exchanges, pending consideration. NSE has granted exemption for period up to March 31, 2023.
  • No provision made for penalties as amount is not ascertainable; financial impact not quantified.

Funding and Capital Activities

  • Allotted 5,750 Listed, Rated, Unsecured, Redeemable, Non-Convertible Debentures (NCDs) of face value ₹1,00,000 each aggregating ₹57.50 crore on private placement basis on September 21, 2026.
  • Funds utilized for working capital, refinancing requirements, and capital expenditure as per offer document.
  • No deviation or variation in use of issue proceeds.
  • Redeemed 23,257 nos. of 7% secured redeemable non-convertible debentures (face value ₹1,00,000 each) aggregating ₹232.57 crore during H1 FY27.

Asset Transactions

  • Sold a residential property classified as "Assets Held for Sale" with carrying amount of ₹0.19 crore for net consideration of ₹13.88 crore, resulting in profit of ₹13.69 crore recognized as exceptional item.
  • Non-current assets of ₹443.53 crore continue to be classified as held for sale, though classified for over one year. Management believes sale is highly probable and expected soon.

Corporate History

  • NCLT Mumbai initiated Corporate Insolvency Resolution Process (CIRP) on January 17, 2020.
  • Resolution plan submitted by Finquest Financial Solutions Private Limited (SRA) approved by NCLT on March 31, 2023.
  • SRA acquired 51% equity stake and classified as Promoter of the company.
  • Factory commenced commercial production on December 1, 2025.

Other Matters

  • Two dividend warrant bank accounts with aggregate balance of ₹16.24 lakhs require transfer to IEPF as 7-year period has elapsed. Management is reactivating accounts for transfer.
  • Company operates in single business segment of manufacturing Paper Products.
  • No deferred tax asset recognized due to uncertainty regarding future taxable profits.
  • Auditors issued qualified conclusion on financial results due to unprovided penalties and uncertainty about NCLT outcome.

Going Concern Assessment

Management believes the company will continue as a going concern based on:

  • Funding raised as required for capex and operating expenses
  • Commencement of commercial operations on December 1, 2025
  • Planned monetization of non-core assets
  • Resultant cash flow projections

Authorizations

Board authorized the following Key Managerial Personnel to determine materiality of events/information:

  • Mr. Hardik Patel (Whole-Time Director)
  • Mr. Alok Prakash (Whole-Time Director and CEO)
  • Mr. Anil Mehta (CFO)
  • Ms. Priya Pandey (Company Secretary)