Company Overview

Scoobee Day Garments (India) Limited reported significant financial deterioration in FY 2025-26, with a net loss of ₹55.12 crore compared to a profit of ₹19.10 crore in the previous year. Revenue declined sharply to ₹327.49 crore from ₹465.03 crore, reflecting challenging operating conditions.

Financial Performance

Loss before exceptional items and tax stood at ₹73.78 crore versus a profit of ₹5.49 crore in FY25. The company reported an income tax expense of ₹18.65 million, comprising ₹30,470 in current tax and an ₹18.68 million deferred tax benefit. Tax reconciliation showed a profit before tax of (₹73,777.28) with an applicable tax rate of 25.168%.

Capital Structure & Corporate Actions

The company completed a rights issue of 34,20,028 equity shares at ₹90 each, raising ₹30.78 crore and increasing paid-up capital to ₹16.92 crore. Promoter holding increased from 74.99% to 79.77% post-rights issue, though minimum public shareholding requirement remains unmet at 19.07%.

AGM & Governance Matters

The 32nd Annual General Meeting will be held virtually on September 29, 2026, to consider several resolutions including:

  • Adoption of financial statements
  • Reappointment of Mr. Dony Dominic as director
  • Continuation of MD K L V Narayanan past age 70
  • Approval of material related party transactions totaling ₹375 crore annually with four group entities

Operational & Compliance Details

The company maintains adequate accounting controls with audit trail functionality operational throughout the year. Bank statements materially agree with books except for exclusion of canteen/scrap inventory from stock reports. Management assessed New Labour Codes effective November 2025 with no material financial impact. The company maintains adequate provisions for foreseeable losses on long-term contracts.

Regulatory Status

SEBI compliance issues remain regarding minimum public shareholding, with promoters disclosing intention to sell 4.77% to restore compliance. Secretarial audit showed no qualifications, and internal financial controls are operating effectively.