Shantai Industries Limited reported a net loss of ₹131.4 lakh for FY26, marking a sharp reversal from the ₹30.6 lakh profit recorded in the previous fiscal year. The Surat-based textile manufacturer is now proposing a complete business transformation into the food and beverage (F&B) sector following a change in ownership.

The company's revenue from operations fell nearly 52% year-on-year to ₹981.2 lakh in FY26, down from ₹2,025.0 lakh in FY25. This decline was accompanied by a significant contraction in total assets, which dropped from ₹1,477.7 lakh to ₹635.7 lakh as of March 31, 2026. The balance sheet shows zero non-current assets and no borrowings, reflecting a lean operational structure as the firm prepares for its strategic shift.

What the Numbers Show

A key divergence in the financials is the surge in operating cash flow despite the reported loss. The company generated ₹299.1 lakh in cash from operating activities in FY26, compared to a cash outflow of ₹295.6 lakh in FY25. This positive cash generation was driven by a ₹664.8 lakh reduction in trade receivables, indicating improved collection efficiency or settlement of outstanding dues, which offset the operating loss of ₹127.8 lakh before tax.

Strategic Pivot and Corporate Actions

The Board of Directors has proposed changing the company's name to Radhe Dhokla Retail Limited and altering its Memorandum of Association to include manufacturing, processing, and distribution of food products, along with renewable energy activities. The proposal requires shareholder approval at the upcoming Annual General Meeting on September 29, 2026.

Key resolutions include:

• Appointment of three new Executive Directors: Jinesh Pandav, Dishant Pandav, and Nikunj Prajapati, each with a monthly remuneration of ₹1 lakh.
• A related-party lease agreement with Radhe Dhokla Private Limited for movable assets, involving a monthly rental of ₹10 lakh and a security deposit of ₹550 lakh.
• Authorization for borrowing up to ₹100 crore and providing loans/guarantees up to ₹300 crore to support future business expansion.

The company also wrote off long-outstanding export benefits totaling approximately ₹86 lakh, including IGST refunds and duty drawbacks, contributing to the bottom-line loss. Statutory auditors DSI & Co. have issued an unqualified opinion on the financial statements.

Promoter Vasudev Fatandas Sawlani and his associated Persons Acting in Concert (PACs) have exited Shantai Industries Limited completely, selling their entire stake of 55,80,000 equity shares to Jinesh Kanaiyalal Pandav and his associated entities. The off-market transaction, executed on August 17, 2026, accounted for 74.40% of the company’s total voting capital, leaving the promoter group with a zero percent holding and transferring majority control to the new acquirer group.

The sale was conducted pursuant to a Share Purchase Agreement under Regulation 29(1) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Prior to the transaction, the promoter group held 55,80,000 shares carrying voting rights, representing 74.40% of the total share capital. No shares were encumbered by pledge or lien before or after the sale.

Transaction Details

The consolidated disclosure outlines the specific contributions from each promoter family member involved in the divestment and the corresponding acquisition by the new entity group.

Vasudev Fatandas Sawlani, identified as the primary promoter, disposed of the largest block at 18,60,000 shares (24.80%). The remaining three promoters—Murlibhai Fatandas Sawlani, Harishbhai Fatandas Sawlani, Disha Murlidhar Sawlani, and Reena Harish Sawlani—sold equal or proportional blocks totaling 37,20,000 shares.

New Acquirer Group Details

The shares were acquired by Jinesh Kanaiyalal Pandav and his Persons Acting in Concert (PACs), who did not hold any stake in the company prior to this transaction. The acquisition was made through an off-market transfer pursuant to a Share Purchase Agreement.

Radhe Dhokla Private Limited acquired the largest block at 49,80,000 shares (66.40%), followed by Jinesh Kanaiyalal Pandav with 3,75,000 shares (5.00%). The remaining PACs acquired smaller blocks of 75,000 shares each.

Capital Structure Impact

The total equity share capital of Shantai Industries Limited remains unchanged at 75,00,000 equity shares of ₹2 each. The off-market nature of the transaction means the shares were transferred directly between parties rather than through open market trading. The disclosure was submitted to BSE Limited and the company on August 19, 2026.