Financial Results Overview

For Quarter Ended September 30, 2026 (Unaudited):

  • Total Income from continuing operations: ₹315 lakhs
  • Loss before exceptional items and tax from continuing operations: ₹(191) lakhs
  • Loss after tax from continuing operations: ₹(231) lakhs
  • Loss after tax from discontinued operations: ₹(184) lakhs
  • Consolidated Net Loss after tax: ₹(415) lakhs
  • Basic & Diluted EPS from continuing operations: ₹(1.20)
  • Basic & Diluted EPS from discontinued operations: ₹(0.96)
  • Basic & Diluted EPS (consolidated): ₹(2.16)
  • Equity Share Capital: ₹2,000 lakhs (Face value ₹10 each)

For Half Year Ended September 30, 2026 (Unaudited):

  • Total Income from continuing operations: ₹315 lakhs
  • Loss before exceptional items and tax from continuing operations: ₹(284) lakhs
  • Loss after tax from continuing operations: ₹(324) lakhs
  • Loss after tax from discontinued operations: ₹(185) lakhs
  • Consolidated Net Loss after tax: ₹(509) lakhs
  • Basic & Diluted EPS from continuing operations: ₹(1.76)
  • Basic & Diluted EPS from discontinued operations: ₹(1.01)
  • Basic & Diluted EPS (consolidated): ₹(2.77)

Discontinued Operations - Nagpur Unit Sale

The company entered into a Memorandum of Understanding with GTN Engineering (India) Limited for the sale of its Nagpur Unit on a slump sale basis.

  • Sale approved by shareholders on September 28, 2026
  • Unit transferred to GTN Engineering effective October 1, 2026
  • Cash consideration: ₹7,200 lakhs
  • Transfer executed pursuant to Slump Sale Agreement dated October 5, 2026
  • Nagpur Unit classified as held for sale during current period and as discontinued operation

Financials of Discontinued Operations (Quarter Ended September 30, 2026):

  • Revenue from operations: ₹5,551 lakhs
  • Other income: ₹13 lakhs
  • Total income: ₹5,563 lakhs
  • Total Expenses: ₹5,088 lakhs
  • Profit/(Loss) before exceptional item and tax: ₹475 lakhs
  • Exceptional Items: ₹(658) lakhs
  • Loss before tax: ₹(183) lakhs
  • Tax expense: ₹1 lakh
  • Loss after tax: ₹(184) lakhs

Balance Sheet of Discontinued Operations (As at September 30, 2026):

  • Total Assets: ₹12,230.42 lakhs
  • Inventories: ₹2,499.76 lakhs
  • Trade Receivables: ₹1,340.23 lakhs
  • Cash and Cash Equivalents: ₹3,551.87 lakhs
  • Other Bank Balances: ₹194.70 lakhs
  • Other Financial Assets: ₹16.76 lakhs
  • Other Current Assets: ₹427.10 lakhs
  • Assets held for sale: ₹4,200.00 lakhs

Exceptional Items

Discontinued Operations - ₹658 lakhs impairment loss:

  • The company imported capital goods under EPCG Scheme for Nagpur Unit
  • Due to slump sale, company assessed it cannot fulfil export obligations
  • Recognized Customs duty expense of ₹163 lakhs (including interest of ₹46 lakhs)
  • Property, plant and equipment remeasured to fair value less costs to sell
  • Resultant impairment loss of ₹495 lakhs recognized due to change in recovery mode from continuing use to sale

Previous Year Exceptional Item - ₹118 lakhs:

  • Recognized during year ended March 31, 2026 for increased defined benefit obligations due to Labour Codes

Capital Structure Changes

During the quarter, the company allotted 24,59,622 equity shares of face value ₹10 each:

  • Issue price: ₹24 per share (including premium of ₹14 per share)
  • Total proceeds: ₹590.31 lakhs
  • Issued on preferential basis pursuant to shareholder approval at EGM held on June 6, 2026
  • In accordance with Chapter V of SEBI (ICDR) Regulations, 2018
  • Proceeds utilization: ₹590 lakhs for redemption of 0.01% Non-Cumulative Redeemable Preference Shares, balance for general corporate purposes

Balance Sheet Position (As at September 30, 2026)

Total Assets: ₹14,652.27 lakhs

  • Non-Current Assets: ₹224.35 lakhs
  • Current Assets: ₹2,197.50 lakhs
  • Assets classified as held for sale: ₹12,230.42 lakhs

Equity and Liabilities:

  • Equity Share Capital: ₹2,000.00 lakhs
  • Other Equity: ₹5,110.45 lakhs
  • Total Equity: ₹7,110.45 lakhs
  • Non-Current Liabilities: ₹2,510.82 lakhs
  • Current Liabilities: ₹0.58 lakhs
  • Liabilities associated with discontinued operations: ₹5,030.42 lakhs

Cash Flow Statement (Half Year Ended September 30, 2026)

  • Net cash flow from operating activities: ₹8,813.55 lakhs
  • Net cash used in investing activities: ₹(7,086.16) lakhs
  • Net cash used in financing activities: ₹(221.96) lakhs
  • Net increase in cash and cash equivalents: ₹1,505.43 lakhs

Audit Committee Reconstitution

The Audit Committee was reconstituted with the addition of Ms. Sabari S. Kambli as a new member. The committee now comprises:

1. Shri Ranganath M V - Chairman

2. Shri Ashok Kumar TT - Member

3. Shri C. George Joseph - Member

4. Ms. Sabari S. Kambli - Member

Auditor's Limited Review Report

Lodha & Co. LLP conducted a review in accordance with Standard on Review Engagements (SRE) 2410 issued by ICAI. Their report states that nothing has come to their attention that causes them to believe that the financial results:

  • Have not disclosed information required by Regulation 33 of SEBI LODR Regulations
  • Contain any material misstatement