Vardhman Polytex Limited reported a net profit of ₹768.13 lakh for the financial year ended March 31, 2026, a decrease of 48.5% from ₹1,492.40 lakh in the previous year. Revenue from operations for the year stood at ₹23,670.39 lakh, compared to ₹28,498.24 lakh in FY25. The board of directors, in its meeting held on May 29, 2026, approved the audited financial results for the quarter and year ended March 31, 2026.

For the quarter ended March 31, 2026, the company recorded a net profit of ₹88.26 lakh on revenue from operations of ₹6,484.56 lakh. Total income for the quarter was ₹6,631.34 lakh. The company’s earnings per share (EPS) for the year was reported at ₹0.17, down from ₹0.45 in the previous year.

Financial Performance

The company’s total expenses for FY26 amounted to ₹23,819.46 lakh. Key expense components included the cost of material consumed at ₹16,056.21 lakh and employee benefit expenses at ₹1,625.02 lakh. Finance costs for the year were ₹898.50 lakh. The profit before tax for the year was ₹768.13 lakh.

Board Decisions and Disclosures

The board approved the re-appointment of M/s Ramanath Iyer & Co., Cost Accountants, as the Cost Auditor for the financial year 2026-27. The firm has been in existence since 1978 and practices in the fields of cost audit, internal audit, and inventory valuation.

The company stated that it has no subsidiaries, associates, or joint ventures as of March 31, 2026, and therefore, consolidated financial statements are not applicable. Despite net worth being fully eroded, the management maintains that the company is operative and has prepared financial statements on a "going concern" basis.

Capital Structure and Debt

During the quarter ended March 31, 2026, the company issued 24,125,000 equity shares of ₹1 each upon the conversion of warrants issued to the promoter group entity. Consequently, the paid-up share capital increased to ₹4,830.19 lakh. Subsequent to the financial year-end, the company allotted and listed Secured Convertible Redeemable Non-Convertible Debentures aggregating to ₹75 crore on April 6, 2026, and Optionally Convertible Debentures aggregating to ₹15 crore on May 18, 2026.

Vardhman Polytex Limited disclosed related party transactions totaling ₹101.97 lakh for the half year ended March 31, 2026. The company submitted the details to the National Stock Exchange of India Limited and BSE Limited in compliance with Regulation 23(9) of the SEBI (Listing Obligation and Disclosure Requirement) Regulations, 2015. The audit committee ratified these transactions on May 29, 2026.

The transactions involved key managerial personnel and entities over which the company's Key Managerial Personnel (KMP) exercise significant influence. Mr. Adish Oswal, Chairman and Managing Director, received remuneration of ₹90 lakh during the period. Mrs. Manju Oswal, a Promoter and Non Executive Director, received a sitting fee of ₹0.33 lakh.

Oswal Industrial Enterprises, an entity over which KMP can exercise significant influence, recorded the highest transaction values. The company received rental income of ₹1.72 lakh and paid ₹2.47 lakh for job work. Additionally, an investment of ₹0.09 lakh was recorded in Oswal Industrial Enterprises, with an opening and closing balance of ₹0.09 lakh.

Vardhman Amarante Private, another entity where KMP hold significant influence, contributed ₹0.49 lakh through rental income and ₹0.03 lakh through the sale of goods or services. Super Lakshmi Enterprises provided rental income of ₹2.48 lakh. Oswal Infratech Private recorded sales of goods or services worth ₹0.35 lakh.

Ms. Aketa Oswal, a Promoter, received rent payments totaling ₹4.10 lakh. The audit committee approved the transactions, with no specific remarks noted in the filing. The total value of transactions during the reporting period was ₹101.97 lakh.

Related Party Transactions Summary