Sanghvi Brands Limited has disclosed its utilization of issue proceeds for the half-year ended September 30, 2025, as reviewed by the company's Audit Committee on November 11, 2025. The report provides insights into how the company has allocated and utilized funds raised from its public issue across various business objectives.

Key Highlights of Fund Utilization

Detailed Breakdown of Utilization

Expansion of Outlets and Distribution

The company allocated Rs. 771.70 lakhs for expanding outlets and distribution of its current brand portfolio in India and overseas. Of this, Rs. 632.14 lakhs have been utilized, with Rs. 139.56 lakhs still pending utilization.

Marketing and Sales Promotion

Sanghvi Brands fully utilized the allocated Rs. 500.00 lakhs for marketing and sales promotion of brands in their portfolio.

General Corporate Purposes

The company utilized Rs. 284.42 lakhs for general corporate purposes, fully exhausting the allocated amount.

Strategic Investments

Out of Rs. 100.00 lakhs allocated for strategic investments for business growth, Rs. 71.42 lakhs have been utilized, leaving Rs. 28.58 lakhs pending.

Issue Expenses

The company spent Rs. 225.55 lakhs out of the allocated Rs. 240.00 lakhs on issue expenses, with Rs. 14.45 lakhs remaining.

Additional Allocations

The statement also shows allocations for acquisitions and development of new brands (Rs. 380.85 lakhs), although the actual utilization amount for this category was not specified in the report.

This disclosure, made in compliance with Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, provides transparency on how Sanghvi Brands is utilizing its raised capital to fuel various aspects of its business growth and operations.

The company's focus on expanding its outlet presence, coupled with significant investments in marketing and brand development, suggests a strategic approach towards enhancing its market position and brand portfolio. The full utilization of funds for marketing and sales promotion indicates the company's commitment to strengthening its brand presence in the market.

Sanghvi Brands Limited , a prominent player in the beauty and wellness industry, has announced its unaudited financial results for the half-year ended September 30, 2025, showcasing a remarkable turnaround in profitability and solid revenue growth.

Financial Highlights

Sanghvi Brands has demonstrated a strong financial performance in the first half of the fiscal year 2025-26. The company reported a consolidated revenue of Rs 60.34 crores, marking a 13.0% increase from Rs 53.41 crores in the same period last year. More notably, the company has achieved a significant turnaround in profitability, posting a consolidated net profit of Rs 4.70 crores compared to a loss of Rs 13.40 crores in the previous year's corresponding period.

On a standalone basis, the company's performance was equally impressive. Standalone revenue reached Rs 41.27 crores, up from Rs 38.89 crores in the previous year, representing a 6.1% growth. The standalone net profit saw a substantial increase of 99.0%, rising to Rs 4.10 crores from Rs 2.06 crores in the same period last year.

Operational Performance

The company's operational efficiency is evident from its improved profit margins. The consolidated profit before tax stood at Rs 5.59 crores for the half-year, indicating a strong recovery from the previous year's performance.

Balance Sheet Strength

Sanghvi Brands maintains a robust financial position with consolidated cash and bank balances of Rs 43.70 crores as of September 30, 2025. This strong liquidity position provides the company with financial flexibility for future growth initiatives and operational needs.

Auditor's Note

The auditors have highlighted concerns regarding two subsidiary companies - Sanghvi Beauty and Salon Private Ltd and Sanghvi Fitness Private Ltd. These subsidiaries have negative net worth due to accumulated losses. However, the management considers this a temporary disruption, suggesting potential turnaround plans for these units.

Looking Ahead

While the company has not provided forward-looking statements, the strong half-yearly performance sets a positive tone for the full fiscal year. Investors and stakeholders will likely be watching closely to see if Sanghvi Brands can maintain this momentum in the second half of FY2026.

As always, investors are advised to conduct their own research and consider market conditions before making investment decisions.