Financial Performance Highlights
Sonaselection India Limited reported exceptional financial results for FY 2025-26, with consolidated revenue surging 63.5% to ₹5,169.49 million (₹517 crore) from ₹3,159.52 million in FY25. Net profit after tax increased 83.3% to ₹340.23 million, while EBITDA reached ₹847.74 million with a margin of 16.40%. The company demonstrated improved financial stability with debt-equity ratio improving to 2.48 from 2.96 in FY25 and return on equity standing at 39.05%.
Capital Structure and Corporate Actions
The company significantly expanded its capital base, increasing authorized share capital from ₹22 crore to ₹60 crore. Key capital actions included conversion of 96,608 Compulsorily Convertible Debentures (CCDs) into 483,040 equity shares and a 1:1.6 bonus issue resulting in issuance of 26,171,496 equity shares. The paid-up capital stood at ₹42.53 crore as of March 31, 2026. Shareholding pattern changes showed Deepank Bhandari holding 46.14% (reduced from 48.66%), Sona Polyspin Private Limited at 27.66%, and Harshil Nuwal increasing to 19.87% from 9.29%.
Operational and Asset Expansion
The company, an integrated fabric manufacturing and processing unit based in Bhilwara, Rajasthan, significantly expanded its asset base. Property, plant and equipment increased to ₹2,297.76 million (gross block) from ₹853.96 million, with major additions in buildings (₹341.35 million) and plant & equipment (₹768.06 million). The facility has an installed processing capacity of 82.44 million meters per annum and holds multiple global certifications including GOTS, OCS, GRS, and OEKO-TEX.
Borrowings and Liability Management
Total borrowings stood at ₹2,582.40 million, comprising secured term loans of ₹1,307.86 million from HDFC Bank and ICICI Bank (interest rates 7.22%-7.85% p.a.), vehicle loans of ₹36.09 million, and unsecured borrowings including related party loans of ₹109.31 million. Current maturities of long-term debt amounted to ₹240.46 million payable within next year. Working capital days increased to 134 days with inventories at ₹1,538.53 million and trade receivables at ₹1,036.99 million.
Governance and Compliance
The Board comprises Subhash Chandra Nuwal (Chairman), Harshil Nuwal (Managing Director), Uma Nuwal (Whole-Time Director), and three independent directors. The 4th AGM is scheduled for September 25, 2026, to adopt financial statements, reappoint Uma Nuwal as director, and ratify cost auditor remuneration. The company received CRISIL BBB/Stable rating and filed a DRHP with SEBI for a proposed IPO. CSR expenditure of ₹19.58 lakh exceeded the required ₹19.27 lakh.
Related Party Transactions and Subsequent Events
Transactions with related parties (Sona Styles Limited, Sona Processors India Limited) totaling ₹312.33 million in purchases were conducted at arm's length. Key management personnel remuneration included Harshil Nuwal (₹14.25 million) and Uma Nuwal (₹6.00 million). Post-balance sheet date, promoter shareholding changes showed Deepank Bhandari reduced to 41.48% and Harshil Nuwal to 17.07% as of August 1, 2026.
Audit and Regulatory Compliance
Auditors provided unmodified reports with no material qualifications. The company maintained adequate internal financial controls, complied with MSME payment regulations, and had no fraud reports or material regulatory orders affecting going concern status.