Vardhman Polytex Limited reported a net profit of ₹311.19 Crore for the quarter ended June 30, 2026, marking a 757% year-on-year increase from ₹0.19 Crore in the corresponding period of FY25. The sharp turnaround was primarily driven by a non-operational exceptional gain of ₹309.56 Crore, recognized from the full and final settlement of outstanding debt with Phoenix ARC. This resolution significantly strengthens the company’s balance sheet, turning its net worth positive to ₹113.96 Crore from a negative ₹227.13 Crore in June 2025.

The Board of Directors approved the standalone unaudited financial results on August 10, 2026, pursuant to Regulation 30, 33, 51(2), 52, and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. To facilitate the debt repayment, Vardhman Polytex allotted Secured Rated Listed Redeemable Non-Convertible Debentures (NCDs) aggregating to ₹75 Crore on BSE Limited on April 6, 2026, followed by Optionally Convertible Debentures (OCDs) of ₹15 Crore on May 18, 2026. The company received a No Objection Certificate from Phoenix ARC on April 7, 2026, confirming the complete clearance of the liability.

Operationally, revenue from operations rose modestly by 2% to ₹60.75 Crore from ₹59.54 Crore in the previous year. The textiles segment contributed ₹68.91 Crore in segment revenue, while the real estate segment reported no revenue for the quarter. Adish Oswal, Chairman & Managing Director, stated that the debt resolution marks a critical milestone in the company’s financial consolidation, providing a stable foundation for sustainable growth. The company continues its asset optimization strategy, including the proposed monetization of approximately 26 Acres of land at its Ludhiana Unit.

What the Numbers Show

The reported profit surge is entirely non-operational. While headline profits jumped 757%, core operating profit before tax and exceptional items stood at just ₹1.63 Crore, compared to ₹0.19 Crore in Q1FY26. This indicates that underlying business profitability remains modest despite the significant balance sheet repair. The issuance of ₹90 Crore in combined debt instruments (₹75 Crore NCDs and ₹15 Crore OCDs) reflects a strategic shift towards structured financing to resolve legacy liabilities. Analysts should note that while the immediate interest burden from the Phoenix ARC debt is eliminated, the company now carries new debt obligations secured against assets valued at ₹632.54 Crore, maintaining a security cover ratio of 7.84 times.

Corporate Actions and AGM Details

Vardhman Polytex has scheduled its 46th Annual General Meeting (AGM) for Thursday, September 24, 2026, at 11:00 AM at its registered office in Ludhiana. The Register of Members and Share Transfer Books will remain closed from Tuesday, September 22, 2026, to Thursday, September 24, 2026, inclusive. The cut-off date for determining shareholders entitled to vote at the AGM is fixed as September 17, 2026, end of day. The notice convening the AGM will be submitted in due course.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE835A01029/6b4fd570-ad73-41a3-9a5c-d84c9c4ee2c4.pdf

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.