Financial Results Summary

Standalone Results (Quarter ended June 30, 2026):

  • Revenue from operations: ₹2,431.36 lakhs (vs. ₹1,537.71 lakhs in Q1 FY26)
  • Other income: ₹105.17 lakhs (vs. ₹180.41 lakhs in Q1 FY26)
  • Total income: ₹2,536.53 lakhs (vs. ₹1,718.12 lakhs in Q1 FY26)
  • Net loss: ₹401.31 lakhs (improved from ₹1,145.65 lakhs loss in Q1 FY26)
  • Basic and diluted EPS: (₹6.17) per share (vs. (₹17.63) in Q1 FY26)
  • Exceptional items: Income of ₹110.60 lakhs (insurance claim settlement)

Consolidated Results (Quarter ended June 30, 2026):

  • Revenue from operations: ₹2,539.17 lakhs
  • Other income: ₹49.09 lakhs
  • Net loss attributable to owners: ₹421.05 lakhs
  • Basic and diluted EPS: (₹6.48) per share

Key Financial Metrics

Cost structure (Standalone):

  • Cost of materials consumed: ₹744.42 lakhs
  • Employee benefits expense: ₹636.17 lakhs
  • Finance costs: ₹743.03 lakhs (includes penal charges of ₹158.23 lakhs)
  • Depreciation and amortization: ₹461.08 lakhs
  • Power and fuel expenses: ₹177.60 lakhs
  • Other expenses: ₹322.18 lakhs

Balance Sheet Position (as of June 30, 2026):

  • Current liabilities exceed current assets by ₹4,825.17 lakhs (standalone)
  • Accumulated losses: ₹26,879.05 lakhs (standalone)
  • Negative net worth
  • Paid-up equity share capital: ₹649.93 lakhs (face value ₹10 each)

Going Concern Considerations

The Company's continuity is dependent on continued support from Shapoorji Pallonji And Company Private Limited (SPCPL). During the quarter:

  • Received perpetual loans (instruments entirely equity in nature) aggregating ₹380.00 lakhs from SPCPL
  • Conversion of borrowings of ₹595.92 lakhs to perpetual loans by SPCPL Group company
  • Textile division facing slowdown and working capital difficulties with overdue payments to creditors
  • Management believes financial situation will improve in coming period

Exceptional Items

Received remaining insurance claims of ₹110.60 lakhs as full and final settlement towards damages and business interruption losses from fire and lightning incidents that occurred during January 2025 to August 2025. During previous year, had received aggregate claim of ₹670.88 lakhs in partial settlements.

Knitwear Unit Closure and Sale

Board Approval: Permanent closure and subsequent sale/disposal of knitwear unit located at Bagalkot Road, Village Marihal, District Belagavi, Karnataka

Transaction Details:

  • Agreement signed on September 9, 2025 with M/s V. G. Parekh & Co.
  • Total consideration: ₹19.50 crores for land, buildings and machinery
  • Advance received: ₹9.50 crores
  • Expected completion: October 2026
  • FY2025-26 turnover contribution: ₹422.73 lakhs (9.76% of total revenue)
  • Net worth contribution: Negative ₹4,192.55 lakhs (21.58% of company's negative net worth)
  • Buyer does not belong to promoter/promoter group/group companies
  • Not a related party transaction

Reasons for closure: Structural cost disadvantages, operational unviability, adverse textile industry conditions, machinery obsolescence, high maintenance costs, industrial relations issues, electricity & water supply issues, environmental and regulatory restrictions.

Regulatory Compliance Issues

Finance costs include aggregate penal charges of ₹158.23 lakhs levied by Indian Renewable Energy Development Agency Limited (IREDA) for:

  • Delay in creation and maintenance of required balance in Debt Service Reserve Account (DSRA)
  • Delay in creation of Mortgage security as per loan agreement terms

Current status: Mortgage security created on May 12, 2026; Company is in process of complying with pending DSRA requirements. Aggregate provision of ₹885.83 lakhs held for such charges as of June 30, 2026.

Segment Performance

Company operates in two segments: Textiles and Power

Standalone Segment Results (Q1 FY27):

  • Textiles segment loss: ₹(654.11) lakhs
  • Power segment profit: ₹214.08 lakhs (including exceptional income)
  • Total segment result: ₹(440.03) lakhs loss before tax

Capital Expenditure (Q1 FY27):

  • Textiles: ₹4.49 lakhs
  • Power: ₹3.09 lakhs
  • Total: ₹7.58 lakhs

Auditor's Review

Batliboi & Purohit, Chartered Accountants issued an unmodified review report with emphasis of matter regarding going concern considerations. The financial results were prepared in accordance with Ind AS and comply with SEBI Listing Regulations.

Board Meeting Details

  • Date: August 11, 2026
  • Time: 02:15 PM to 03:45 PM
  • Approved unaudited standalone and consolidated financial results for quarter ended June 30, 2026
  • Approved permanent closure of knitwear unit