Vadilal Dairy International Ltd has received interim protection from the Bombay High Court, allowing it to continue its business operations under the Vadilal brand while a trademark dispute is resolved through arbitration. The judgment, pronounced in Commercial Arbitration Petition No. 18386 of 2026, provides interim directions governing the conduct of the parties during the arbitral proceedings.

The dispute arises from the interpretation and implementation of a family settlement and interconnected agreements executed in 1993. These agreements include the Memorandum of Agreement, Brand Agreement, Registered User Agreement, and the Irrevocable Power of Attorney, which govern the respective rights of the parties concerning the Vadilal trademarks and business. The litigation was initiated by Vadilal Industries (USA) Inc. and Vadilal Industries Private Limited.

During a board meeting, Managing Director Shailesh Gandhi informed the board that under the 1993 Family Settlement, the Bombay Group relinquished its partnership and ownership rights in the Ahmedabad Group. In consideration, Mr. Gandhi became the independent owner of the Bombay Group by relinquishing his shareholding in the Ahmedabad Group. He stated that all family agreements executed pursuant to the settlement are irrevocable and non-terminable.

The interim order enables Vadilal Dairy International Ltd to maintain its existing business operations under the Vadilal brand, subject to compliance with the conditions and directions specified in the court's judgment. The Hon'ble Court clarified that its observations are prima facie in nature and that the rights and contentions of all parties remain open for determination in the arbitral proceedings.

The company stated that it continues to operate its business in the ordinary course and will take further legal steps as advised. The disclosure was made to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Vadilal Dairy International Limited narrowed its net loss to ₹67.91 lakh for the financial year ended March 31, 2026, compared to a loss of ₹88.87 lakh in the previous year. Revenue from operations for FY26 stood at ₹2,417.13 lakh, a decrease from ₹2,662.65 lakh in FY25. The board of directors approved the audited financial results for the quarter and fiscal year ended March 31, 2026, at a meeting held on May 27, 2026. The company submitted the newspaper publication of these results to the Bombay Stock Exchange on May 28, 2026, complying with Regulation 47(1)(b) and 33 of the SEBI (Listing Obligation and Disclosure Requirement) Regulations, 2015.

Financial Performance

The company recorded a profit after tax of ₹213.30 lakh for the quarter ended March 31, 2026, compared to a profit of ₹119.09 lakh in the corresponding quarter of the previous year. Total revenue for Q4FY26 was ₹803.45 lakh, up from ₹946.29 lakh in Q4FY25. The statutory auditors, P V M & Co., issued an unmodified opinion on the financial results.

Key Financial Metrics

The following table summarizes the standalone financial results for Vadilal Dairy International Limited:

Board Decisions

Alongside the financial results, the board considered and approved the appointment of Mrs. Anagha Raut as the Internal Auditor of the company for the financial year 2026-2027. The appointment is effective from May 27, 2026. The board also reviewed the Auditors' Report, the Statement of Assets & Liabilities, and the Cash Flow Statement.

Operational Details

The company operates within a single business segment involving the manufacture and sale of ice cream and frozen desserts. Due to the seasonal nature of the business, the company noted that quarterly results may not be representative of the annual performance. The meeting commenced at 11:15 A.M. and concluded at 1:00 P.M. on May 27, 2026.