Financial Results Approval

The Board approved the Unaudited (Standalone and Consolidated) Financial Results for the quarter ended 30th June, 2026:

Standalone Financial Results (₹ in lakhs):

  • Total Income: ₹85,354
  • Total Expenses: ₹79,876
  • Profit before Exceptional Items & Tax: ₹5,478
  • Exceptional Items: ₹166 (proportionate value of sweat equity shares issued during FY23)
  • Profit before Tax: ₹5,312
  • Tax Expense: ₹1,377 (Current tax: ₹591, Deferred tax: ₹786)
  • Profit after Tax: ₹3,935
  • Other Comprehensive Income: ₹451
  • Total Comprehensive Income: ₹4,386
  • Basic EPS after exceptional items: ₹7.83
  • Diluted EPS after exceptional items: ₹7.83

Consolidated Financial Results (₹ in lakhs):

  • Total Income: ₹86,728
  • Total Expenses: ₹81,047
  • Profit before Exceptional Items & Tax: ₹5,681
  • Exceptional Items: ₹166
  • Profit before Tax: ₹5,515
  • Tax Expense: ₹1,413 (Current tax: ₹591, Deferred tax: ₹822)
  • Profit after Tax: ₹4,102
  • Other Comprehensive Income: ₹446
  • Total Comprehensive Income: ₹4,548
  • Basic EPS after exceptional items: ₹8.16
  • Diluted EPS after exceptional items: ₹8.16

Preferential Issue Approval

The Board approved issuance of up to 18,00,000 warrants convertible into equity shares on preferential basis:

  • Issue Price: ₹555.56 per warrant
  • Total Issue Size: ₹100,00,08,000 (₹100 crore + ₹8,000)
  • Face Value: ₹10 per share
  • Allottees: Promoter/Promoter group (7 allottees)
  • Conversion Period: Within 18 months from allotment date
  • Requires shareholder and regulatory approvals

Allottee Details:

1. Shri Pranal Modani (Promoter) - 1,50,000 warrants

2. Shri Vinod Kumar Sodani (Promoter) - 1,50,000 warrants

3. Smt. Antima Soni (Promoter) - 1,00,000 warrants

4. Smt. Anjana Soni Thakur (Promoter) - 1,00,000 warrants

5. Smt. Krippie Soni (Promoter) - 2,00,000 warrants

6. Sangam E-com Limited (Promoter Group) - 6,00,000 warrants

7. Nidhi Mercantiles Limited (Promoter Group) - 5,00,000 warrants

Capital Structure Impact:

  • Pre-issue promoter holding: 70.52% (3,54,31,638 shares)
  • Post-issue promoter holding: 71.54% (3,72,31,638 shares)
  • Total shares pre-issue: 5,02,46,559
  • Total shares post-conversion: 5,20,46,559

Capital Expenditure Approval

The Board approved ₹1,500 crore expansion project to be completed by 31st March 2029:

Existing Capacity:

  • Spindles for Cotton yarn: 1,24,992
  • Rotors for open end yarn: 4,584
  • Denim fabric: 5 Line
  • Recycled polyester fibre: 45 TPD
  • Synthetic processing: 52 Chamber
  • Capacity Utilization: More than 90-95%

Proposed Capacity Addition:

  • Spindles for Cotton yarn: 80,000
  • Rotors for open end yarn: 2,700
  • Denim fabric: 2 Line
  • Denim Garmenting: 10 Lakh Piece/Month
  • Recycled polyester fibre: 40 TPD
  • Synthetic processing + PV garmenting: 4 Chamber & 5 Lakh Piece/Month

Financing: Through term debt, equity, and internal accruals

Rationale: Expansion to meet growing demand, broaden product portfolio, introduce niche products, improve operational efficiency through advanced automation, and achieve cost competitiveness through economies of scale.

Additional Notes

  • The company operates in single segment "Textile Business"
  • During Q2 FY26, the company revised useful lives of certain assets affecting depreciation comparability
  • EPS figures are not annualized
  • Financial results reviewed by joint auditors R Kabra & Co. LLP and O.P. Dad & Co.