Vinny Overseas reported a significant contraction in profitability for the financial year ended March 31, 2026, with net profit falling 82% year-on-year to ₹92.3 lakh. The textile processing company’s revenue from operations grew modestly by 2.5% to ₹12,461.6 lakh, reflecting steady demand in its core job-work business.

The sharp decline in earnings was primarily attributed to rising input costs and a reduction in government incentives. Cost of materials consumed surged by ₹1,366.2 lakh to ₹6,239.3 lakh, outpacing the revenue growth. Additionally, other income dropped nearly 60% as a one-time Gujarat Textile Policy subsidy tapered off significantly compared to the previous fiscal year.

Financial Performance

Revenue from operations stood at ₹12,461.6 lakh for FY26, up from ₹12,157.2 lakh in FY25. However, the top-line growth was insufficient to offset the pressure on margins. EBITDA contracted by 37% to ₹827.3 lakh, resulting in an EBITDA margin of 6.64%, down from 10.81% in the prior year.

Profit before tax (PBT) fell 81% to ₹136.9 lakh. Consequently, profit after tax (PAT) declined to ₹92.3 lakh from ₹515.4 lakh. Basic and diluted earnings per share (EPS) decreased to ₹0.02 from ₹0.14 in the previous year.

Balance Sheet and Cash Flow

Total assets expanded by 17% to ₹12,420.5 lakh, driven by continued investment in property, plant, and equipment. The gross block of plant and machinery rose to ₹4,222.6 lakh from ₹2,865.0 lakh. Net worth strengthened slightly to ₹8,300.3 lakh.

The company’s liquidity position tightened, with the current ratio declining to 1.91 times from 3.31 times. This was due to a decrease in current assets alongside an increase in current liabilities. Borrowings increased significantly, with total borrowings rising to ₹1,416.3 lakh from ₹287.2 lakh, leading to a net debt-equity ratio of 0.06 times.

Operational Highlights

Vinny Overseas operates primarily on a job-work basis for fabric processing. The company reported cordial industrial relations and continued investment in workforce training. Employee benefit expenses rose 27.5% to ₹625.4 lakh.

The board noted that exports remain a modest part of the business, with foreign exchange earnings at ₹38.0 lakh against an outgo of ₹867.2 lakh. The company is focusing on premiumization and sustainability to capture demand for eco-friendly fabrics.

Corporate Actions

The Board of Directors did not recommend a dividend for FY26, aiming to conserve resources for future growth and capital expenditure. The 34th Annual General Meeting is scheduled for September 25, 2026, where shareholders will vote on the reappointment of independent directors and the ratification of cost auditor remuneration.

Vinny Overseas Limited has appointed two new independent directors and approved the revised notice for its upcoming annual general meeting. The board also recommended the reappointment of a retiring director.

The appointments were made during a board meeting held on September 2, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Board Appointments

The Nomination and Remuneration Committee recommended the appointment of Mr. Divyaprakash Jagdishchandra Chechani and Mr. Parag Kailash Chandrajagetiya as independent directors. Both appointments are effective from September 27, 2026, for a term of five years, ending on September 26, 2031.

These appointments are subject to shareholder approval at the ensuing annual general meeting and other statutory regulatory approvals. The company confirmed that both individuals meet the independence criteria under Section 149 of the Companies Act and are not debarred from holding office by SEBI or any other authority.

Mr. Chechani brings over 20 years of experience in banking, finance, import-export operations, and logistics. He currently serves as Chief Financial Officer of Ratnadeep Metal & Tubes Ltd. Mr. Jagetiya is a Fellow Chartered Accountant with expertise in audit, assurance, taxation, and corporate governance. He is also qualified in Information Systems Audit and Artificial Intelligence.

AGM and Corporate Actions

The board approved the revised draft notice for the 34th Annual General Meeting, scheduled for September 25, 2026, at 2:30 pm. The meeting will be conducted via Video Conferencing or Other Audio-Visual Means.

The date remains unchanged from the previous intimation issued on August 14, 2026. The register of members and share transfer books will remain closed from September 19, 2026, to September 25, 2026, inclusive, for the purpose of the AGM.

Additionally, the board recommended the reappointment of Ms. Nishita Shah (DIN: 07197925), who retires by rotation, subject to member approval. The secretarial audit report for the financial year ended March 31, 2026, remains unchanged and forms part of the revised board report.