Responsive Industries Limited has received disclosure from its promoter group entity Fairpoint Tradecom LLP regarding the creation of a pledge on 3,00,000 shares. The pledge was created in favor of O J Financial Services Limited for personal borrowing purposes, as disclosed to BSE Limited and National Stock Exchange of India Limited on February 23, 2026.

Pledge Details and Shareholding Impact

The pledge creation took place on February 20, 2026, involving 3,00,000 shares representing 1.22% of the company's total share capital. This transaction has increased Fairpoint Tradecom LLP's total encumbered shareholding from 34,99,971 shares to 37,99,971 shares.

Promoter Group Holdings and Encumbrance Status

Fairpoint Tradecom LLP maintains a total holding of 2,46,50,000 shares in Responsive Industries Limited, representing 9.25% of the total share capital. Following this latest pledge creation, the promoter group's encumbered shares now constitute 15.41% of the total share capital.

Regulatory Compliance and Disclosure

The disclosure was made in compliance with Regulation 31(1) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, and Regulation 7(2) of SEBI (Prohibition of Insider Trading) Regulations, 2015. The company confirmed that the encumbered shares represent neither 50% or more of promoter shareholding nor 20% or more of total share capital.

The pledge was created with a security cover value of ₹5,46,00,000 based on the share value on the date of the agreement. O J Financial Services Limited, the beneficiary of the pledge, operates in activities auxiliary to financial intermediation and is not classified as a scheduled commercial bank, public financial institution, NBFC, or housing finance company.

Corporate Communication

Mohini Sharma, Company Secretary and Compliance Officer of Responsive Industries Limited, digitally signed and submitted the disclosure documents to both stock exchanges on February 24, 2026. Krishna Kumar Agarwal, Designated Partner of Fairpoint Tradecom LLP (DIN: 00093874), signed the original disclosure on behalf of the promoter group entity on February 23, 2026.

Responsive Industries Limited has received a credit rating reaffirmation from Infomerics Valuation and Rating, maintaining its IVR A/Stable/IVR A1 rating for total bank facilities worth Rs. 430.27 crore. The rating agency's assessment reflects the company's strong operational performance and robust financial position.

Credit Rating Details

The rating covers various facilities across different categories:

Notably, the long-term bank facilities amount was reduced from Rs. 130.57 crore to Rs. 125.47 crore, while other facility ratings remained unchanged.

Strong Financial Performance

The company demonstrated impressive growth in FY25, with key financial metrics showing substantial improvement:

The revenue growth was primarily driven by strong export performance, with exports accounting for Rs. 246.68 crore (17%) and domestic sales contributing Rs. 1,171.23 crore (83%) in FY25. In H1 FY26, the company reported total operating income of Rs. 652.46 crore with improved EBITDA and PAT margins of 23.65% and 15.81% respectively.

Rating Strengths

Infomerics highlighted several key strengths supporting the rating:

• Experienced Leadership: Promoted by Mr. Rishabh Agarwal with around four decades of experience in the PVC flooring and vitrified tiles industry
• Diversified Portfolio: Over 30 product categories across Vinyl Flooring, Synthetic Leather, and Luxury Vinyl Tiles, serving more than 25 end-user industries
• Global Reach: Distribution network spanning over 50 cities in India and more than 70 countries globally
• Strong Financial Position: Tangible net worth increased to Rs. 1,345.39 crore as of March 31, 2025, from Rs. 1,137.07 crore in the previous year

Comfortable Leverage Metrics

The company maintains a healthy financial risk profile with comfortable leverage indicators:

Despite a moderate increase in total debt, the overall gearing remained stable, while debt protection metrics showed improvement.

Areas of Concern

The rating agency identified certain weaknesses that partially offset the strengths:

• Elongated Operating Cycle: Though improved, the operating cycle remained at 157 days in FY25 compared to 174 days in FY24, primarily due to high receivable days of 147 days
• Raw Material Price Volatility: Exposure to fluctuations in key raw materials including limestone, glass fibre, and vinyl
• Foreign Exchange Risk: Unhedged foreign currency exposure of Rs. 35.77 crore as of December 31, 2025

The stable outlook reflects expectations of sustained operating performance supported by the promoters' track record, diversified product portfolio, and healthy financial risk profile. The rating agency expects the company to maintain its comfortable leverage and strong debt protection metrics over the medium term.