Himatsingka Seide Limited reported a decline in its consolidated financial performance for the financial year ended March 31, 2026, with net profit falling 18.4% to ₹62.24 crore compared to ₹76.28 crore in the previous year. Revenue from operations decreased 9.5% to ₹2,515.09 crore from ₹2,778.20 crore in FY25. The Board of Directors has recommended a final dividend of ₹0.25 per equity share, subject to shareholder approval. Additionally, the board approved raising up to ₹850 crore through the issuance of Senior, Secured, Redeemable Non-Convertible Debentures on a private placement basis to refinance debt obligations.

Financial Performance Overview

The audited consolidated financial results for FY26 reflect a contraction in top-line performance despite a marginal improvement in EBITDA margins. Total income for the year decreased to ₹2,727.24 crore from ₹2,843.27 crore in FY25. EBITDA stood at ₹576.67 crore, with margins expanding to 21.1% from 20.4% in the previous year. Profit before tax before exceptional items rose to ₹121.88 crore from ₹112.10 crore in the prior year.

Quarterly Results for Q4FY26

For the quarter ended March 31, 2026, the company reported a revenue from operations of ₹617.22 crore, a decrease of 6.0% from ₹656.91 crore in the corresponding quarter of the previous year. Net profit for the quarter stood at ₹1.73 crore, significantly lower than the ₹12.07 crore recorded in Q4FY25. EBITDA for the quarter increased to ₹154.17 crore from ₹142.86 crore, with the EBITDA margin expanding to 21.4% from 20.9% year-on-year. Other income surged to ₹104.47 crore, primarily driven by net foreign exchange gains of ₹95.69 crore due to the depreciation of the Indian Rupee against the U.S. Dollar.

Key Financial Metrics

The following table summarises the consolidated financial performance for the year and quarter ended March 31, 2026:

Operational and Business Updates

Capacity utilisation levels during Q4FY26 were impacted by tariff overhang and geopolitical tensions, particularly in the Middle East. Utilisation stood at 99% for the Spinning Division, 56% for the Sheeting Division, and 63% for the Terry Towel Division. The company expects the Middle East overhang to continue impacting shipments to certain jurisdictions during Q1 FY27. Despite external headwinds, the Indian market demonstrated consistent year-on-year growth, supported by brands such as Himeya, LIV, and Atmosphere.

Himatsingka Seide Limited has approved the issuance of Non-Convertible Debentures (NCDs) aggregating ₹600 crore to raise funds. The Board of Directors sanctioned the issuance of Series C and Series 1 NCDs on May 27, 2026, through a private placement basis. The securities carry a coupon rate of 11.50% per annum, payable quarterly.

The fund raising comprises two tranches. The Series C tranche involves 1,000 unlisted, unrated NCDs aggregating ₹50 crore. The Series 1 tranche involves 55,000 listed, rated NCDs aggregating ₹550 crore, accompanied by a Green Shoe Option of up to ₹250 crore. Both tranches have a tenure of 42 months from the deemed date of allotment.

Key Details of NCD Issuance

The company will create a first pari passu charge on entire movable and immovable fixed assets situated at its Hassan and Doddaballapur plants to secure the debentures. Additionally, a negative lien will be placed over land admeasuring 4.85 acres at its Hassan manufacturing facility. The principal for both series will be repaid in three instalments at the end of 30 months, 36 months, and 42 months respectively.

The decision was taken pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015. The meeting commenced at 2:00 P.M. and concluded at 5:50 P.M. on May 27, 2026. The issuance is subject to applicable laws and necessary approvals.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE049A01027/a9dc3bd79b054559.pdf