Rupal Kanakia Trust has pledged 28,00,000 equity shares of Cineline India Limited to Vistra ITC (India) Limited for collateral security purposes. The pledge creation was disclosed under Regulation 31 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, with the encumbrance created on February 24, 2026.

Regulatory Filing and Trust Clarification

Rasesh Kanakia, acting as trustee of Rupal Kanakia Trust, submitted the mandatory disclosure to stock exchanges on February 25, 2026. The official regulatory filing reveals that the actual pledgor mentioned in the disclosure document is Himanshu Kanakia as trustee of Hiral Kanakia Trust, indicating a correction in the trust identification from the initial reporting.

Financial Structure and Security Cover

The pledge arrangement demonstrates a favorable security cover ratio for the lending transaction. The value of pledged shares significantly exceeds the borrowed amount, providing adequate protection for the lender.

Promoter Holdings Impact

The pledge affects a significant portion of the trust's total shareholding in Cineline India Limited. Prior to this encumbrance, the trust held 30,68,800 shares, representing 8.96% of the company's total share capital, with no existing encumbrances.

Regulatory Compliance and Transaction Details

The disclosure confirms that the encumbered shares represent less than 50% of the promoter's shareholding and less than 20% of the total share capital, ensuring compliance with regulatory thresholds. Vistra ITC (India) Limited, the entity receiving the pledge, operates in the lending business and is not a scheduled commercial bank or public financial institution.

The transaction involves only the promoter's personal financial arrangements, with neither Cineline India Limited nor any of its group companies participating in the lending agreement. The pledge serves as collateral security for the promoter's personal financial requirements, maintaining clear separation between personal and corporate financial activities.

Cineline India Limited has delivered impressive financial performance in Q3FY26, reporting a substantial 471% year-on-year increase in net profit to ₹621.21 lakhs compared to ₹108.85 lakhs in Q3FY25. The company announced these unaudited results for the quarter ended December 31, 2025, following board approval on January 28, 2026.

Strong Revenue Growth and Operational Performance

The company demonstrated solid revenue growth with operations revenue reaching ₹6,720.57 lakhs in Q3FY26, marking a 6.16% increase from ₹6,330.58 lakhs in the corresponding quarter of the previous year. Total income, including other income, stood at ₹7,025.31 lakhs compared to ₹6,369.66 lakhs in Q3FY25.

Expense Management and Profitability Improvement

Total expenses for Q3FY26 were ₹6,074.66 lakhs compared to ₹6,216.86 lakhs in Q3FY25, reflecting effective cost management. The company's profit before tax increased significantly to ₹891.46 lakhs from ₹152.80 lakhs in the previous year. Movie exhibition costs, the largest expense component, remained relatively stable at ₹1,908.64 lakhs compared to ₹1,918.94 lakhs in Q3FY25.

Nine-Month Performance Shows Remarkable Turnaround

For the nine months ended December 31, 2025, Cineline India achieved a complete turnaround with a net profit of ₹820.02 lakhs compared to a loss of ₹463.75 lakhs in the corresponding period of FY25. Revenue from operations for the nine-month period grew to ₹17,446.88 lakhs from ₹15,561.51 lakhs, representing a 12.11% increase.

Impact of New Labour Codes

The company recognized ₹59.19 lakhs as exceptional items in Q3FY26, representing the statutory impact of new Labour Codes notified by the Government of India with effect from November 21, 2025. This amount covers additional gratuity and compensated absences due to the revised definition of wages under the consolidated labour laws.

Financial Position and Earnings

The company maintained a paid-up equity share capital of ₹1,713.32 lakhs with ₹5 face value per share. Basic and diluted earnings per share from continuing operations improved significantly to ₹1.81 in Q3FY26 from ₹0.33 in Q3FY25. The results were subject to limited review by statutory auditors KKC & Associates LLP and were approved by the Board of Directors chaired by Mr. Rasesh Kanakia.