Damodar Industries Limited , a prominent player in the Indian textile sector, has recently seen a significant move by one of its key promoters. Arunkumar Biyani, a promoter of the company, has pledged a substantial portion of his shareholding, signaling a strategic financial maneuver.

Pledge Details

On November 17, 2025, Arunkumar Biyani pledged 24,70,000 equity shares of Damodar Industries Limited to the State Bank of India. This pledge represents 10.60% of the company's total share capital and was created to secure additional securities for term loans and working capital requirements.

Impact on Shareholding

The recent pledge has had a notable impact on Biyani's encumbered shareholding:

This move increases Biyani's total encumbered shareholding to 21.20%, indicating a significant portion of his stake in the company is now pledged.

Purpose of the Pledge

The primary reasons for creating this pledge are:

1. To secure additional securities for term loans
2. To meet working capital requirements

This suggests that Damodar Industries may be looking to optimize its capital structure or fund expansion plans.

Regulatory Compliance

In compliance with SEBI regulations, specifically Regulation 31(1) and 31(3) of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011, the company has made the necessary disclosures to the stock exchanges. This transparency ensures that all stakeholders are informed about significant changes in the promoter's shareholding pattern.

Market Implications

While the pledge of shares by promoters is a common practice in Indian corporations, it often attracts market attention. Investors typically monitor such activities closely as they can provide insights into a company's financial strategies and the promoters' confidence in the business.

As Damodar Industries navigates this financial move, stakeholders will likely keep a close watch on how the additional financing impacts the company's operations and growth trajectory in the competitive textile sector.

Damodar Industries Limited , a prominent player in the textile industry, has released its unaudited financial results for the quarter and half-year ended September 30, 2025. The company demonstrated resilience in a challenging market environment, reporting significant growth in net sales while navigating through fluctuations in profitability.

Quarterly Performance Highlights

Damodar Industries showcased a robust increase in net sales for the quarter ended September 30, 2025. The company reported net sales of ₹12,188.87 lakh, marking an impressive 18% growth compared to ₹10,335.24 lakh in the previous quarter. This substantial improvement in top-line performance indicates strong demand for the company's products and effective sales strategies.

Financial Results Overview

Profitability and Earnings

Despite the growth in net sales, the company experienced a slight decline in quarterly profit after tax, which stood at ₹174.68 lakh compared to ₹232.19 lakh in the previous quarter. However, when compared to the same quarter last year (₹73.90 lakh), the company has more than doubled its profit, indicating an overall positive trend in profitability.

The earnings per share (EPS) for the quarter was reported at ₹0.75, a decrease from ₹1.00 in the previous quarter but a significant improvement from ₹0.32 in the same quarter of the previous year.

Half-Yearly Performance

For the half-year ended September 30, 2025, Damodar Industries reported cumulative net sales of ₹22,524.11 lakh, showing a modest increase from ₹21,602.17 lakh in the corresponding period of the previous year. The company's half-yearly profit after tax stood at ₹346.87 lakh, a remarkable turnaround from a loss of ₹76.75 lakh in the same period last year.

Balance Sheet Strength

As of September 30, 2025, Damodar Industries maintains a strong financial position with a paid-up share capital of ₹1,165.00 lakh and total equity of ₹14,744.72 lakh. This solid equity base provides the company with financial stability and the capacity for future growth initiatives.

Additional Corporate Actions

In addition to the financial results, the Board of Directors approved an advertisement for inviting fixed deposits, potentially indicating the company's strategy to raise funds for operational or expansion purposes.

Conclusion

Damodar Industries' latest financial results demonstrate the company's ability to drive sales growth in a competitive market. While facing some pressure on quarter-on-quarter profitability, the year-on-year improvements in both sales and profits showcase the company's resilience and potential for sustained growth. The company's focus on maintaining a strong balance sheet, coupled with its efforts to explore additional funding avenues through fixed deposits, suggests a proactive approach to financial management and future expansion plans.