Ecoboard Industries Limited has secured new banking facilities worth ₹15 crore from Indian Overseas Bank, marking a significant step in restructuring its financial arrangements. The company entered into a loan agreement with the lender on March 30, 2026, as disclosed under Regulation 30 of SEBI Listing Regulations.

Banking Facility Details

The new arrangement with Indian Overseas Bank encompasses two key components designed to support the company's operational requirements:

The facilities are specifically intended to provide working capital and business operational funding to support the company's ongoing activities and growth initiatives.

Security and Collateral Arrangements

The banking facilities are secured through comprehensive security arrangements with Indian Overseas Bank. The prime security includes a registered mortgage of company land located at Village Velapur, Taluka Malshiras, District Solapur, with detailed specifications as outlined in the sanction letter.

For collateral security, the cash credit facility is backed by hypothecation of stock and book debts, along with an exclusive first charge on the entire current assets of the company, both present and future. The bank guarantee facility is secured through counter indemnity of the company and extension of first charge on current assets.

Closure of Existing Banking Facilities

Concurrently with the new facility arrangement, Ecoboard Industries has completed the closure of its existing banking relationship with Union Bank of India. The company successfully repaid and closed all outstanding facilities as of March 27, 2026:

This strategic move consolidates the company's banking relationships while securing enhanced facility limits to support business operations.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring full transparency with stakeholders. The agreement does not involve any related party transactions, and Indian Overseas Bank has no shareholding in Ecoboard Industries Limited. The transaction represents an arm's length commercial arrangement focused on supporting the company's working capital requirements and operational funding needs.

Ecoboard industries Limited has announced its unaudited standalone financial results for the quarter and nine months ended December 31, 2025, accompanied by an independent auditor's review report from Chaturvedi SK & Fellows LLP, showing mixed performance with reduced losses despite ongoing operational challenges.

Financial Performance Overview

The company reported a net loss of ₹78.01 lakh for Q3FY26, representing a significant improvement from the ₹825.55 lakh loss recorded in the corresponding quarter of the previous year. Revenue from operations demonstrated substantial growth, reaching ₹947.39 lakh compared to ₹187.01 lakh in Q3FY25.

Auditor's Review and Compliance

Chaturvedi SK & Fellows LLP conducted the review in accordance with Standard on Review Engagements (SRE) 2410. The auditors confirmed that the financial results comply with Indian Accounting Standards prescribed under Section 133 of the Companies Act, 2013, and SEBI Listing Regulations. The review report was issued on February 14, 2026, with the Board of Directors approving the results on the same date.

Segment-wise Performance

The company operates through two primary segments: Eco Build (Particle Board) and Eco Energy (Bio System). The Eco Build segment generated revenue of ₹608.45 lakh in Q3FY26, while the Eco Energy segment contributed ₹338.94 lakh.

Capital Raising Activities

The company successfully raised capital through preferential allotment of equity shares and convertible warrants during the period. Key highlights include allotment of 51,33,323 equity shares at ₹30 per share, raising ₹1,539.99 lakh, and issuance of 59,498,000 convertible warrants, receiving ₹470.10 lakh as application money. Post-period, the company allotted 34,41,417 equity shares at ₹33.50 per share on January 10, 2026.

Legal and Tax Matters

The auditors drew specific attention to substantial tax demands from various government authorities totaling ₹1,804.53 lakh across multiple cases. These include Custom, Excise & Service Tax demands of ₹1,114.64 lakh for assessment years 2008-09 to 2017-18, with the Supreme Court admitting the company's appeal for hearing. Income tax demands include ₹510.44 lakh for AY 2017-18 and 2018-19, and ₹179.45 lakh for AY 2023-24. The company has not made provisions for these liabilities pending appeal outcomes.

Operational Developments and Asset Monetization

The company achieved a significant operational milestone by successfully installing an 8'x4' production line at its Velapur plant, with commercial production commencing from August 1, 2025. The company continues its asset monetization strategy, having sold 27.97 acres of excess land at Velapur up to December 31, 2025, with additional land sales in progress and ₹286.40 lakh received as advances from interested parties.