The National Company Law Tribunal (NCLT) Chandigarh Bench has reserved its order regarding the proposed scheme of amalgamation involving Rudra Ecovation Limited and Shiva Texfabs Limited.

The tribunal concluded proceedings on the matter and indicated that the final order will be pronounced at a future date. The scheme involves the merger of Rudra Ecovation, designated as the transferor company, with Shiva Texfabs, the transferee company, along with their respective shareholders and creditors.

Rudra Ecovation Limited disclosed the development in a filing with the Bombay Stock Exchange (BSE) on August 22, 2026. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Next Steps

The company stated it will intimate the stock exchanges immediately upon receipt or pronouncement of the order by the NCLT. Any further information required under the applicable provisions of the SEBI Listing Regulations will also be provided at that time.

Rudra Ecovation Limited, formerly known as Himachal Fibres Limited, is headquartered in Barotiwala, Himachal Pradesh, with its corporate office in Ludhiana, Punjab.

Rudra Ecovation Limited reported a widened net loss for the first quarter of FY26, driven by declining revenue and rising operational costs. The textile manufacturer posted a net loss of ₹96.61 lakh for the quarter ended June 30, 2026, compared to a net loss of ₹86.86 lakh in the corresponding period of FY25. This represents an 11% increase in losses year-on-year.

Total revenue for the quarter stood at ₹504.04 lakh, down 5.4% from ₹532.93 lakh in Q1FY25. Revenue from operations specifically fell to ₹499.88 lakh from ₹527.88 lakh previously. Despite the drop in top-line figures, total expenses increased to ₹605.39 lakh from ₹622.92 lakh in the prior year quarter, though this comparison is nuanced by inventory changes.

Financial Performance

The company’s cost structure saw mixed movements. Cost of materials consumed decreased to ₹352.18 lakh from ₹405.78 lakh in Q1FY25. However, employee benefits expense rose to ₹102.75 lakh from ₹111.50 lakh, and finance costs were recorded at ₹30.62 lakh compared to ₹39.33 lakh in the prior year. Other expenses declined to ₹95.58 lakh from ₹112.83 lakh.

A significant factor in the expense line was the change in inventories of finished goods and work-in-progress, which showed a negative value of (₹5.18 lakh) in Q1FY26, contrasting with a negative ₹76.48 lakh in Q1FY25. This reduction in inventory drawdown contributed to the higher reported expenses relative to the prior year.

What the Numbers Show

The divergence between revenue decline and expense management highlights ongoing operational pressures. While material costs and other expenses decreased, the inability to reduce employee benefits proportionally alongside revenue contraction squeezed margins further. The net loss before tax was ₹101.35 lakh, with deferred tax benefits of ₹4.74 lakh reducing the final net loss to ₹96.61 lakh. Other income remained minimal at ₹4.16 lakh, contributing less than 1% to total revenue, indicating limited offsetting gains from non-operational sources.

Corporate Actions

In addition to financial results, the Board of Directors, meeting on August 13, 2026, approved the reconstitution of the Audit Committee. The revised committee includes Dharam Veer Singh as Chairperson, Kajal Rai as Member, and Akhil Malhotra as Member.

Crucially, the Board consented to the sale, transfer, or disposal of the company’s land and building situated at Barotiwala. This action is subject to shareholder approval and the terms of the Scheme of Arrangement/Amalgamation between Rudra Ecovation Limited and Shiva Texfabs Limited. The merger application was filed with the NCLT, Chandigarh, on September 23, 2025, and remains pending final order.

The unaudited standalone financial results were reviewed by the statutory auditors, Manjul Mittal & Associates, who issued a limited review report confirming compliance with SEBI LODR Regulations.