Naraiah Naidu Gudaru, Promoter & Executive Chairman of Regency Ceramics Limited , declared on April 07, 2026, that he and his Persons Acting in Concert (PAC) have not created any encumbrance, directly or indirectly, on the company's securities during the financial year ended March 31, 2026. This disclosure ensures that the shareholding of the promoter group remains free from charges such as pledges or hypothecation, barring those previously disclosed.

The declaration was submitted to BSE Ltd and the National Stock Exchange of India in compliance with Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The regulation mandates promoters to disclose the details of any encumbrance created on their holdings to ensure transparency for shareholders.

Persons Acting in Concert

The filing included an annexure listing the individuals categorized as Promoters and PACs who are covered under this declaration. The list confirms that no new encumbrances were established by these entities during the specified period.

The communication was addressed to the stock exchanges and copied to the Audit Committee of Regency Ceramics Limited for record-keeping purposes.

Regency Ceramics Limited reported a widened net loss of ₹2,384.48 lakh for the financial year ended March 31, 2026, compared to a net loss of ₹225.01 lakh in the previous year, as the company continues to grapple with the aftermath of industrial violence and operational restarts. Revenue from operations for the year rose to ₹3,826.78 lakh from ₹1,314.70 lakh in FY25. The statutory auditors issued a qualified opinion on the financial results, citing non-provision of liabilities and uncertainties regarding asset impairment and inventory valuation.

The Board of Directors approved the audited standalone financial results for the quarter and year ended March 31, 2026, at a meeting held on May 30, 2026. The company reported a total income of ₹4,086.08 lakh for FY26, up from ₹2,576.80 lakh in the previous year. Total expenditure increased significantly to ₹6,619.15 lakh from ₹3,064.61 lakh in FY25. The basic and diluted earnings per share for the year stood at (₹9.02), a decline from ₹0.85 in the prior year.

The financial statements have been prepared on a going concern basis despite the company reporting an accumulated loss of ₹12,908.87 lakh as on March 31, 2026, resulting in the erosion of net worth. The company noted that business activities have been initiated, generating revenue and cash flows. It has refurbished one manufacturing line in its Yanam plant and entered into an exclusive manufacturing arrangement for glazed vitrified tiles at a facility in Andhra Pradesh, where operations have been ongoing for the last 18 months.

K.S. Rao & Co., the statutory auditors, issued a qualified opinion highlighting several material uncertainties. The financial statements were prepared without considering the effect of impairment on the value of property, plant, and equipment. Additionally, the company has not provided for liabilities towards salary, wages, gratuity, and leave encashment for factory employees following a lock-out declared in January 2012. The auditors also noted the absence of confirmations for debtors and creditors, and the non-provision of interest on unsecured loans from directors and overdue amounts payable to Micro, Small and Medium Enterprises suppliers.

The auditors further pointed out that the company holds long-pending trade receivables and advances aggregating ₹2,419.65 lakhs, for which the limitation period has expired, raising doubts about recoverability. Similarly, long-pending trade payables aggregating ₹2,320.49 lakhs lack sufficient evidence to demonstrate the liability. The valuation of inventories was also noted as uncertain, though management stated that a stock audit was conducted to reconcile values.

Financial Performance Summary

The Board also approved the re-appointment of M/s. Brahmayya & Co. as the internal auditor for the financial year 2026-27, based on the recommendation of the Audit Committee. The trading window for dealing in the company's securities, which was closed on April 1, 2026, will remain closed until 48 hours after the announcement of the financial results.