Patspin India Ltd has disclosed significant defaults on its bank loan obligations, reporting a total default amount of Rs 24.37 crore as of March 31, 2026. The Kochi-based textile company submitted this disclosure to BSE Limited on April 1, 2026, in compliance with SEBI Circular dated November 21, 2019.

Default Details and Bank Exposure

The company's defaults span across three major banking institutions, with varying degrees of exposure and outstanding amounts.

Financial Position Summary

The company's overall financial indebtedness presents a concerning picture with substantial defaults relative to total borrowings.

Regulatory Compliance

The disclosure was made pursuant to SEBI Circular SEBI/HO/CFD/CMD1/CIR/P/2019/140 dated November 21, 2019, and in compliance with SEBI Listing Regulations. The company's Chief Financial Officer T Ravindran signed the disclosure documents submitted to the stock exchange.

Company Profile

Patspin India Ltd, incorporated in 1991 with CIN L18101KL1991PLC006194, operates from its registered office at Palal Towers, MG Road, Ravipuram, Kochi. The company holds ISO 9001:2005 and ISO 14001:2005 certifications and is engaged in textile manufacturing operations.

The default disclosure indicates significant financial stress for the company, with defaults representing nearly half of its total bank borrowings. Central Bank of India bears the highest exposure among the three lenders, accounting for approximately 58% of the total outstanding amount.

Patspin India Limited announced its Q3FY26 financial results for the quarter ended December 31, 2025, revealing continued operational challenges with widening losses. The textile company's Board of Directors approved the unaudited standalone financial results at their meeting held on February 7, 2026.

Financial Performance Overview

The company's financial performance for Q3FY26 showed mixed results with marginal revenue growth but increased losses:

Other income surged to ₹156 lakhs in Q3FY26 from ₹26 lakhs in Q3FY25, primarily due to ₹149 lakhs of export benefits from prior periods received during the quarter.

Nine Months Performance

For the nine months ended December 31, 2025, the company's performance reflected ongoing operational difficulties:

Exceptional Items and Provisions

The company recorded exceptional items worth ₹101 lakhs in Q3FY26, primarily comprising provisions for incremental liability under the newly notified Labour Codes. The Government of India brought substantial provisions of four Labour Codes into force on November 21, 2025, requiring the company to recognize additional employee benefit obligations for past periods in accordance with Ind AS 19.

Operational Challenges and Restructuring Plans

Patspin India continues to face significant operational headwinds, with the company currently carrying out job work operations where revenue is sufficient only to cover variable costs. The company has submitted a new resolution plan to lenders for debt restructuring, which includes:

• Moratorium for interest and working capital term loan installment payments
• Reduction in interest rates
• Fresh working capital facility

Bankers have completed a Techno Economic Viability study confirming the viability of the restructuring proposal, which remains under consideration.

Auditor's Concerns

The statutory auditors highlighted material uncertainty regarding the company's ability to continue as a going concern, citing net losses, cash losses, and eroded net worth. However, they noted that the proposed debt restructuring, combined with cost rationalization measures and potential resumption of own manufacturing operations, could improve EBITDA and cash generation capabilities.