Rudra Ecovation FY26 Net Loss Widens to ₹406.97 Lakh

Financial Performance Highlights (Standalone Basis)

| Revenue from Operations and Other Income | 3,215.91 | 2,735.24 | 17.57% |

| Profit/Loss before Tax | (428.32) | (350.03) | 22.37% |

| Profit/Loss after Tax | (406.97) | (328.98) | 23.71% |

| Total Comprehensive Income | (395.49) | (316.49) | 24.96% |

| Earnings per Share (Basic & Diluted) | (0.34) | (0.30) | 13.33% |

Key Financial Ratios

| Debtors Turnover (Days) | 3.13 | 5.95 | -47.39% | Due to increase in debtors |

| Inventory Turnover (Days) | 3.59 | 1.76 | 104.24% | Due to decrease in inventories |

| Interest Coverage Ratio | (1.41) | (0.61) | - | Due to increase in losses |

| Current Ratio | 1.98 | 1.16 | 70.32% | Due to increase in current assets |

| Operating Profit Margin (%) | (5.61)% | (3.25)% | -136.03% | Due to loss during the year |

| Return on Net Worth (%) | (4.26) | (3.86) | - | Due to increase in losses |

Share Capital Changes

Authorized Share Capital: ₹33.50 crore (Equity: ₹17.50 crore; Preference: ₹16.00 crore)

Issued, Subscribed and Paid-up Capital:

Increased from ₹11.43 crore to ₹11.93 crore during FY 2025-26
Equity Share Capital: ₹11.93 crore (11,93,28,000 equity shares of Re. 1 each)
Preference Share Capital: ₹12.00 crore (12,00,000 4% Non-Cumulative Redeemable Preference Shares of ₹100 each)

Convertible Warrant Activity:

During previous FY 2024-25, allotted 2,07,65,000 convertible warrants at ₹48 per warrant
During FY 2025-26, converted 49,60,000 warrants into equity shares on:
January 08, 2026: 16,90,000 warrants
January 09, 2026: 22,20,000 warrants
January 10, 2026: 10,50,000 warrants
26,87,000 warrants lapsed and forfeited due to non-payment of balance 75% within stipulated period
Forfeited amount: ₹322.44 lakh transferred to Capital Reserve

Director Changes and Appointments

Resignations during FY 2025-26:

Mr. Vinod Kumar Goyal (Executive Director & CEO) resigned effective April 30, 2025
Mr. Surjit Singh (Independent Director) resigned effective August 13, 2025
Mr. Akhilesh Kumar Tiwari (Executive Director & CEO) resigned effective September 02, 2026

Appointments during FY 2025-26:

Mr. Akhilesh Kumar Tiwari appointed as Executive Director & CEO effective May 09, 2025
Mr. Dharam Veer Singh appointed as Additional Director (Independent) effective August 13, 2025

AGM Proposals:

1. Reappointment of Mr. Akhil Malhotra (DIN: 00126240) as Non-Executive Director retiring by rotation

2. Reappointment of Mr. Gian Chand Thakur (DIN: 07006447) as Whole-Time Director for 5 years without remuneration (October 01, 2026 to September 30, 2031)

3. Appointment of Mr. Inderpreet Singh (DIN: 11590171) as Independent Director for 5 years (September 02, 2026 to September 01, 2031)

4. Appointment of Mr. Rahul Kapoor (DIN: 07705566) as Executive Director for 5 years without remuneration (September 02, 2026 to September 01, 2031)

Key Managerial Personnel (as of March 31, 2026)

Mr. Gian Chand Thakur: Whole Time Director
Mr. Akhilesh Kumar Tiwari: Executive Director and CEO (until September 02, 2026)
Mr. Ravi Passi: CFO
Ms. Nancy Singla: Company Secretary

Corporate Developments

Merger with Shiva Texfabs Limited:

Board approved Scheme of Amalgamation on December 23, 2024
BSE issued 'No Adverse Observation' letter on August 25, 2025
First Motion Application filed with NCLT on September 23, 2025
Second Motion Petition filed with NCLT on March 06, 2026
NCLT heard matter on August 21, 2026 and reserved its order

Investment in Shiva Texfabs Limited:

Carried at fair value through OCI: ₹9,623.77 lakh as of March 31, 2026
Comprises 23,39,181 fully paid equity shares and 47,01,755 partly paid equity shares

Auditor Information

Statutory Auditors: M/s Manjul Mittal & Associates (Firm Registration No. 028039N)

Reappointed for second term of 5 years from conclusion of 41st AGM to 46th AGM
Audit fee: ₹2.00 lakh (₹1.00 lakh for audit, ₹1.00 lakh for tax audit)

Secretarial Auditors: M/s Bhambri & Associates (CP No-22626)

Appointed for 5 years from conclusion of 44th AGM to 49th AGM

Internal Auditor: Mr. Mahender Paul appointed for FY 2026-27

Auditor Qualifications

Statutory Auditor Observations:

Delay in deposit of statutory dues and servicing bank dues due to liquidity crunch
Charge ID 80036826 pending for satisfaction beyond statutory period

Secretarial Auditor Observations:

Charge ID 80036826 pending for satisfaction beyond statutory period
Some physical secretarial records damaged due to water ingress

Related Party Transactions

| Party | Nature | Amount (₹ in Lakhs) |

| Shiva Texfabs Limited | Sale | 3,214.81 |

| Shiva Texfabs Limited | Purchase | 2,097.43 |

| Yogindera Worsted Limited | Sale | 54.98 |

| Yogindera Worsted Limited | Purchase | 0.48 |

| Shiva Speciality Yarns Ltd | Purchase | 10.73 |

| Ishani Bansal (Marketing Director) | Remuneration | 24.00 |

Liquidity and Financing

Cash and Cash Equivalents: ₹6.62 lakh as of March 31, 2026 (₹11.52 lakh as of March 31, 2025)

Borrowings:

Unsecured Loans: ₹525.00 lakh
Less: Equity Portion: ₹502.38 lakh
NPV of Interest: ₹83.85 lakh

Bankers: State Bank of India, HDFC Bank, Indusind Bank

Contingent Liabilities

Entry Tax with H.P. Excise and Taxation Dept: ₹70.80 lakh
Processing Fees of Dy. Director of Industries, Solan: ₹267.68 lakh
Income Tax demand for various Assessment Years: ₹19.52 lakh

Employee Benefits

Gratuity Liability:

Present value of obligation: ₹20.08 lakh
Recognized as provision: ₹17.98 lakh (non-current), ₹2.10 lakh (current)

Employee Strength: 200 permanent employees as of March 31, 2026

AGM Details

45th Annual General Meeting:

Date: September 30, 2026
Time: 1:00 PM
Mode: Video Conferencing/Other Audio Visual Means
Cut-off date: September 23, 2026
Book closure: September 24, 2026 to September 30, 2026

Compliance Status

SEBI Listing Regulations: Complied with all mandatory requirements
Corporate Governance: Certificate of compliance obtained from practicing company secretary
No instances of fraud reported during the year
No material orders passed by regulators/courts impacting going concern status

Forward-Looking Statements

The Chairman's message highlights:

Continued focus on sustainable textile manufacturing
Challenging operating environment with raw material price fluctuations
Commitment to circular economy and eco-friendly textiles
Confidence in emerging opportunities in sustainable textile sector