Vishal Fabrics Limited Annual Report 2025-26
Company Overview: Vishal Fabrics Limited (Scrip Code: 538598, Security ID: VISHAL) filed its Annual Report for FY 2025-26, containing financial statements, directors' report, and notice of annual general meeting. The document includes a corrigendum to correct typographical errors in the originally submitted report.
Financial Performance: The company reported revenue from operations of ₹1602.11 crore for FY26, representing a 5.4% increase from ₹1519.83 crore in FY25. Profit After Tax showed strong growth, increasing 35% to ₹32.18 crore from ₹23.84 crore in the previous year. PAT margin improved to 2.22% from 1.91%, while Basic EPS stood at ₹1.37 (FY25: ₹1.21). Total comprehensive income reached ₹52.74 crore, significantly higher than the previous year's ₹29.01 crore.
Capital Structure & Financing: Vishal Fabrics completed conversion of 5 crore warrants to equity shares on a preferential basis, raising ₹114.75 crore. This contributed to the paid-up equity share capital increasing to ₹123.81 crore comprising 24,76,10,003 equity shares. The company achieved substantial debt reduction, with the debt-equity ratio improving to 0.35 from 0.61 through repayment of unsecured loans. Non-current borrowings decreased significantly to ₹28.91 crore from ₹84.51 crore.
Operational Highlights: The company maintained its annual fabric processing capacity of 100+ million metres across manufacturing facilities in Ahmedabad, Gujarat. Employee strength stood at 440 employees. Export markets expanded beyond South Africa, Thailand, Sri Lanka, and Bangladesh to include Portugal, Panama, Kenya, and Morocco. Domestic clients include major brands such as Killer, Spykar, Pepe Jeans, and Mufti.
Investments & Associates: The company made significant investments in associate entities totaling ₹46.00 crore (FY25: ₹36.04 crore), including Chiripal Textile Mills Private Limited (₹26.25 crore, 42.36% ownership), Nandan Industries Private Limited (₹10.53 crore, 27.25% ownership), and Quality Exim Private Limited (₹9.22 crore, 37.92% ownership). Share of profit from associates was ₹3.47 crore for the year.
Corporate Governance & AGM: The board comprises 6 directors (3 executive, 3 independent including 1 woman independent director). The 41st AGM is scheduled for August 11, 2026 via Video Conferencing/OAVM, with agenda items including adoption of financial statements, re-appointment of directors, and ratification of auditor remuneration. No dividend was recommended for FY26, with entire profit transferred to reserves.
CSR & Compliance: CSR expenditure of ₹0.99 crore was fully utilized through implementation partners focusing on education and sports development. The company confirmed compliance with various regulatory requirements including no benami property holdings, no willful defaulter status, and adequate internal financial controls.
Auditor's Report: Statutory auditors S V J K and Associates issued an unmodified opinion, confirming the financial statements give a true and fair view in conformity with Indian Accounting Standards. No key audit matters were communicated, and internal financial controls were found to be adequate and operating effectively.
Key Ratios & Risk Management: Important financial ratios showed improvement, with Current Ratio at 2.37 (up from 1.94) and Return on Investment at 50.16% (up from 30.21%). The company manages credit risk, liquidity risk, and market risk, with weighted average interest rate on variable-rate borrowings at 9.41% and minimal foreign currency exposure.