Shree Ram Twistex Limited reported a net profit of ₹360.86 lakh for the quarter ended June 30, 2026, marking a 4.75% increase from ₹344.48 lakh in the corresponding period of the previous year. Revenue from operations surged 46.60% to ₹9,271.97 lakh, up from ₹6,324.60 lakh in Q1FY25. The company also disclosed a variation in the utilization of proceeds from its public issue, approved by shareholders on June 1, 2026, involving the reallocation of surplus funds from its wind power project.

The Board of Directors, chaired by Managing Director Bhaveshbhai Bhikhubhai Ramani, approved the unaudited financial results on August 12, 2026. The results were reviewed by the statutory auditors, Doshi Doshi & Co., in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company operates in a single reportable segment: cotton yarn manufacturing.

Financial Performance

Revenue growth was driven by higher operational activity, although cost of materials consumed also rose significantly to ₹8,413.12 lakh from ₹5,842.89 lakh in the prior year quarter. Profit before tax stood at ₹647.86 lakh, compared to ₹487.16 lakh in Q1FY25. Total tax expenses were ₹287.00 lakh, including current tax of ₹136.38 lakh and deferred tax of ₹150.61 lakh.

Other income declined to ₹34.74 lakh from ₹7.81 lakh in the previous year quarter. Employee benefits expense decreased slightly to ₹93.36 lakh from ₹111.43 lakh. Finance costs rose to ₹262.63 lakh from ₹158.90 lakh, reflecting increased borrowing costs or debt levels. Depreciation and amortization expenses were ₹208.40 lakh, up from ₹174.18 lakh.

IPO Proceeds Utilization Variation

The company filed a statement of deviation in the use of IPO proceeds under Regulation 32 of the SEBI LODR Regulations. Shareholders approved the variation on June 1, 2026. The original plan included setting up a 4.2 MW wind power plant comprising two 2.1 MW turbine generators at a cost of ₹3,900.00 lakh.

Due to a shorter estimated completion timeframe for a smaller capacity, the company revised the project to install one 3.1 MW wind turbine generator. This reduced the required allocation to ₹2,511.00 lakh, creating a surplus of ₹1,389.00 lakh. The surplus was reallocated as follows:

• Machinery for expansion: ₹525.74 lakh
• Repayment of State Bank of India outstanding: ₹863.26 lakh

As of June 30, 2026, the company had utilized ₹1,369.16 lakh towards the wind power plant. The remaining balance lies in fixed deposits with State Bank of India. Other IPO objects, including the 6.1 MW solar power plant and working capital requirements, were fully utilized as of March 2026.

What the Numbers Show

The significant rise in revenue outpaced the growth in total expenses, leading to an expansion in profit before tax by nearly 33%. However, net profit growth remained modest at 4.75%, indicating that tax expenses and other non-operational factors absorbed much of the operational gain. The reallocation of IPO proceeds towards debt repayment suggests a strategic move to reduce leverage and improve the balance sheet structure, while the shift in wind power capacity aims for faster project completion.

Shree Ram Twistex Limited has secured shareholder approval to vary the objects and terms of utilization of its Initial Public Offering (IPO) proceeds and modify the time limit for such utilization. The special resolution was passed via remote e-voting on May 30, 2026, with 99.99% of the valid votes cast in favour. This decision allows the company to alter the deployment of funds raised during its public issue and adjust the schedule for their use.

The postal ballot process, conducted in compliance with Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, commenced on May 01, 2026, and concluded on May 30, 2026. Ms. Sonu Jain of M/s. Sonu Jain & Co., Practising Company Secretaries, served as the Scrutinizer for the e-voting process. The report confirms that the resolution received the requisite majority needed for passage.

A total of 33,398,386 votes were polled, representing 83.55% of the total outstanding shares. The breakdown of the voting results indicates strong support across various shareholder categories. Promoters and the Promoter Group cast 13,826,425 votes entirely in favour of the resolution. Public Institutional shareholders cast 4,018,374 votes, also unanimously in favour.

The following table details the voting pattern across different shareholder categories:

The record date for determining the eligibility of shareholders to vote on the resolution was April 24, 2026. The company disclosed that there were no invalid or abstained votes recorded during the process. The approval enables Shree Ram Twistex to realign its capital allocation strategies in response to current business requirements.