Swojas Foods Limited has successfully converted 20,00,000 warrants into equity shares following board approval on February 18, 2026. The conversion represents a significant capital raising exercise that has strengthened the company's equity base and generated substantial proceeds for business operations.

Warrant Conversion and Regulatory Disclosure

The board of directors approved the conversion of warrants originally issued through preferential allotment to non-promoter investors. Following the conversion, Jhaveri Trading & Investment Pvt Ltd filed a substantial acquisition disclosure under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, on February 19, 2026.

Jhaveri Trading's Shareholding Details

Jhaveri Trading and Investment Pvt Ltd, classified as a non-promoter entity, exercised the conversion option for 20,00,000 warrants out of their total holding of 33,31,500 warrants. The conversion resulted in the company acquiring a 5.70% stake in Swojas Foods Limited's equity share capital.

Capital Structure Impact

The warrant conversion has resulted in a substantial increase in the company's paid-up equity share capital. The newly allotted shares rank pari-passu with existing equity shares, providing equal rights and privileges to the converting warrant holders.

Regulatory Compliance and Background

The disclosure was signed by Rajesh Nanubhai Jhaveri, Director of Jhaveri Trading & Investment PvLtd (DIN: 00471351), and submitted to BSE Limited and Swojas Foods Limited. The warrant conversion follows the company's earlier disclosure and the original warrant issuance approved by shareholders at the Extra Ordinary General Meeting held on December 03, 2025.

The company will apply for listing and trading approval from BSE Limited for the newly issued equity shares. All regulatory disclosures have been made in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Swojas Foods Limited announced its unaudited standalone financial results for the quarter and nine months ended December 31, 2025, showing mixed performance with quarterly revenue decline but strong nine-month growth. The Board of Directors approved these results in their meeting held on February 10, 2026.

Quarterly Financial Performance

The company's Q3FY26 performance reflected challenging market conditions with revenue contraction and reduced profitability compared to the previous year.

The significant decline in net profit was primarily attributed to higher operational expenses and increased tax burden, including prior period tax expenses of Rs 13.99 lacs during the quarter.

Nine-Month Performance Shows Strong Growth

Despite quarterly challenges, the company demonstrated robust performance over the nine-month period, indicating strong business momentum in the earlier quarters of FY26.

The substantial revenue growth of 127.5% in the nine-month period highlights the company's expansion capabilities, though profit margins remained under pressure.

Expense Analysis and Operational Metrics

The company's expense structure revealed key operational trends during Q3FY26. Total expenses amounted to Rs 3257.04 lacs compared to Rs 3328.85 lacs in Q3FY25. Notable expense components included:

• Purchases of Stock-in-trade: Rs 4263.40 lacs (vs Rs 3257.13 lacs in Q3FY25)
• Changes in inventories: Favorable impact of Rs 1083.56 lacs
• Other Expenses: Increased to Rs 72.02 lacs from Rs 8.76 lacs
• Employee benefits: Rs 5.11 lacs (vs Rs 2.35 lacs)

Warrant Conversion and Fund Utilization

Swojas Foods provided updates on its convertible equity share warrants program. The company received In Principal Approval from BSE for issuing 4,84,84,500 warrants convertible into equity shares of Rs 10 each. As of January 21, 2026, the company converted 2,100,000 shares into equity instruments.

The fund utilization certificate revealed that Rs 1071.86 lacs was received from warrant proceeds till December 31, 2025, with Rs 1025.94 lacs utilized primarily for working capital requirements, leaving Rs 45.92 lacs unutilized.

Corporate Governance and Compliance

The financial results were reviewed by the Audit Committee and approved by the Board of Directors. The statutory auditors VSSB & Associates conducted a limited review of the results as per SEBI regulations. The company maintains its paid-up equity share capital at Rs 3096.27 lacs with a face value of Rs 10 per share, unchanged from previous periods.