Kaarya Facilities & Services Limited Announces Rs. 165 Crore Private Placement to Boost Working Capital

Kaarya Facilities & Services Limited (ISIN: INE282Y01016) has announced a significant private placement of equity shares and convertible warrants, aiming to raise approximately Rs. 165 crore to strengthen its working capital and support general corporate purposes.

Placement Details

The company is offering shares at Rs. 13.09 each, which includes a premium of Rs. 3.09 per share. The private placement consists of two parts:

5.6 million equity shares to non-promoters
7 million convertible warrants to promoters

This strategic move is expected to inject fresh capital into the company, potentially improving its financial position and operational capabilities.

Financial Snapshot

To understand the context of this placement, let's look at Kaarya Facilities & Services Limited's recent financial position:

Financial Metric	Current Year	1 Year Ago	3 Years Ago	5 Years Ago
Total Assets	19.80	17.40	16.80	18.30
Current Assets	17.50	14.60	13.50	13.00
Current Liabilities	18.60	18.60	10.40	2.30
Total Equity	0.10	-1.60	3.40	11.20

All figures in Rs. crore

The company's balance sheet shows a gradual increase in total assets over the years, but also a significant rise in current liabilities. The negative equity position in the previous year has slightly improved, which this private placement may further address.

Cash Flow Analysis

Cash Flow Component	Current Year	1 Year Ago	3 Years Ago
Operating Activities	-0.90	-0.60	0.10
Investing Activities	0.50	0.20	0.30
Financing Activities	0.60	1.40	-0.50
Net Cash Flow	0.10	0.90	-0.10

All figures in Rs. crore

The cash flow statement indicates that the company has been experiencing negative operating cash flows, which the new capital injection may help to alleviate.

Implications and Outlook

The private placement is expected to have several potential impacts:

Improved Working Capital: The influx of funds should help address the company's working capital needs, potentially easing operational constraints.
Debt Reduction: Part of the funds may be used to reduce existing liabilities, improving the company's financial health.
Growth Opportunities: With additional capital, Kaarya Facilities & Services Limited may be better positioned to pursue growth initiatives and expand its service offerings.
Shareholder Structure: The issuance of new shares and warrants will alter the company's shareholding pattern, with promoters potentially increasing their stake upon warrant conversion.

The company plans to complete the allotment within 15 days of receiving approval for the special resolution. This swift timeline suggests a sense of urgency in strengthening the company's financial position.

Investors and market watchers will be keen to observe how effectively Kaarya Facilities & Services Limited utilizes this capital infusion to address its working capital requirements and pursue its strategic objectives in the facilities management sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-100.00%	0.0%	-100.00%	-100.00%	-100.00%	-100.00%

Kaarya Facilities & Services Limited has announced its unaudited financial results for the quarter and half-year ended September 30, 2025, showcasing a solid performance in revenue and profitability.

Financial Highlights

The company reported the following key figures for the quarter ended September 30, 2025:

Metric	Q2 FY2026 (₹ in million)
Revenue from Operations	197.57
Profit	4.67
Earnings Per Share (EPS)	0.49

Half-Year Performance

For the half-year ended September 30, 2025, Kaarya Facilities & Services demonstrated strong financial results:

Metric	H1 FY2026 (₹ in million)
Total Income	216.51
Profit Before Tax	13.78
Profit After Tax	12.33

Operational Highlights

The company's revenue from operations for the half-year stood at ₹211.47 million, indicating a robust operational performance.
Employee benefits expenses for the half-year were reported at ₹155.79 million.
Other expenses for the half-year amounted to ₹34.21 million.

Management Commentary

The Board of Directors, in their meeting held on November 14, 2025, approved these unaudited financial results. The statutory auditors have carried out a limited review of the financial results, and no audit qualifications were reported.

Investor Information

The detailed financial results will be available on the BSE website ( www.bseindia.com ) and the company's official website ( www.kaarya.co.in ). Investors and stakeholders are encouraged to review these for a comprehensive understanding of the company's financial position.

Kaarya Facilities & Services Limited's Q2 FY2026 results reflect a company on a steady growth path, with improvements in both top-line and bottom-line figures. The management's approval of these results without any audit qualifications underscores the company's commitment to transparent financial reporting.