Donear Industries Limited has submitted its quarterly compliance certificate to stock exchanges, fulfilling regulatory obligations under SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended March 31, 2026.

Regulatory Compliance Filing

The company filed the confirmation certificate under Regulation 74(5) of SEBI regulations on April 7, 2026, addressing both BSE Limited and National Stock Exchange of India Limited. The filing was signed by Krishna Agrawal, Company Secretary & Compliance Officer of Donear Industries Limited.

Registrar Confirmation

MUFG Intime India Private Limited, formerly known as Link Intime India Private Limited, serves as the registrar and share transfer agent for Donear Industries. The registrar issued the confirmation certificate on April 3, 2026, which was subsequently forwarded to the stock exchanges.

The certificate confirms that securities received from depository participants for dematerialisation during Q4 FY26 were properly processed and confirmed to the depositories within prescribed timelines. Ashok Shetty, Sr. Vice President-Corporate Registry at MUFG Intime India, signed the confirmation certificate.

Certificate Compliance Details

The registrar's certificate validates several key compliance aspects:

• Securities received for dematerialisation were confirmed or rejected to depositories as required
• All securities comprised in the certificates have been listed on stock exchanges where earlier issued securities are listed
• Security certificates received were mutilated and cancelled after due verification by depository participants
• Names of depositories have been substituted in the register of members as registered owners within prescribed timelines

Corporate Information

Donear Industries Limited operates from Donear House, located at Plot No. A-50, Road No. 1, MIDC, Andheri (E), Mumbai. The company maintains its corporate identification number as L99999MH1987PLC042076, reflecting its incorporation status in Maharashtra.

This regulatory filing demonstrates the company's commitment to maintaining transparency and compliance with SEBI regulations governing depositories and participants in the Indian securities market.

Donear industries has received a credit rating upgrade from India Ratings and Research (Ind-Ra), which has revised the company's bank loan facilities rating to 'IND BBB+' from 'IND BBB' with a stable outlook. The upgrade reflects improved operating performance and expectations of sustained profitability growth.

Rating Upgrade Details

The comprehensive rating action covers multiple facility types with a total exposure of INR 365.97 crores:

Key Performance Drivers

The rating upgrade is primarily driven by improved operating profitability margins in 9MFY26, which surpassed India Ratings' expectations. The company's EBITDA margin rose to 11.81% in 9MFY26, compared to 9.26% in FY25, led by a decline in cost of goods sold to 50.00% of revenue from 52.00% in FY25.

Financial Performance Highlights

Strategic Initiatives and Market Position

Donear Industries operates as an established player in the Indian textile market with brands including Donear Suiting's, Mayur Suiting's and Shirting's, Eurico, and Vestito, each with over 20 years of track record. The company runs approximately 450 stores under the franchise model under the D'cot brand and exports to over 20 countries across five continents.

The company plans to install additional solar capacity of 3.3MW within six months, adding to its existing 1MW solar plant. This INR 150.00 million capex investment, funded through 75.00% debt and 25.00% internal accruals, is expected to reduce power and fuel costs and improve EBITDA margins from FY27.

Business Segment Performance

In FY25, the fabric segment contributed 59.00% of revenue while the garment segment constituted 21.00%. The B2C segment accounted for 34.00% of revenue, with the B2B segment contributing 22.00%. A new segment, linen undersuiting, contributed INR 530.00 million to revenue during FY25.

Credit Profile and Outlook

India Ratings expects the company's credit metrics to remain stable during FY26-FY27, with gross interest coverage likely to exceed 2.5x. The rating agency anticipates EBITDA margins to remain rangebound between 9.00%-11.00% during this period.

The company's working capital cycle improved slightly to 318 days in FY25 from 333 days in FY24, though it remains elongated due to inventory requirements at franchise outlets. Working capital limits were increased to INR 3,500.00 million in February 2026 from INR 3,300.00 million, with further increase to INR 3,800.00 million expected by end-FY26.