Alps Industries Reports Continued Losses Amid Insolvency Resolution Process
Alps Industries Limited, under insolvency proceedings, reported a standalone net loss of Rs. 17.09 crore for Q2 FY2026, compared to Rs. 16.3 crore in Q1. Revenue declined to Rs. 0.1 crore from Rs. 0.3 crore. High interest costs of Rs. 16.80 crore significantly impacted performance. The company is implementing an NCLT-approved resolution plan following a vote by the Committee of Creditors. Auditors raised concerns about unprovided liabilities of Rs. 2,219.48 crore. Despite challenges, financial statements are prepared on a going concern basis.
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Alps Industries Limited , a textile company currently under insolvency proceedings, has reported continued losses for the quarter ended September 30, 2025. The company's financial results, released under the supervision of Resolution Professional Mr. Hemant Sharma, highlight the ongoing challenges faced by the firm as it navigates through the Corporate Insolvency Resolution Process (CIRP).
Financial Performance
For the quarter ended September 30, 2025, Alps Industries reported a standalone net loss of Rs. 17.09 crore, compared to a net loss of Rs. 16.3 crore in the previous quarter. The company's revenue for the quarter stood at Rs. 0.1 crore, reflecting a significant decline from Rs. 0.3 crore in the previous quarter.
Key financial highlights for the quarter include:
| Metric | Q2 FY2026 (Rs. crore) | Q1 FY2026 (Rs. crore) | Change (%) |
|---|---|---|---|
| Revenue | 0.10 | 0.30 | -66.67% |
| EBITDA | -0.20 | -0.10 | 100.00% |
| Interest | 16.80 | 16.10 | 4.35% |
| Net Loss | 16.90 | 16.30 | 3.68% |
| EPS (Rs.) | -4.33 | -4.16 | 4.09% |
The company's performance continues to be severely impacted by high interest costs, which amounted to Rs. 16.80 crore for the quarter, up from Rs. 16.10 crore in the previous quarter.
Insolvency Proceedings and Resolution Plan
Alps Industries has been undergoing insolvency proceedings since September 13, 2024, when the National Company Law Tribunal (NCLT), Allahabad Bench, admitted a petition filed by Edelweiss Assets Reconstruction Company Ltd. (EARC) under Section 7 of the Insolvency and Bankruptcy Code, 2016.
The company's management has reported that out of 13 resolution plans received, the Committee of Creditors (CoC) voted in favor of one plan on June 27, 2025. This plan was subsequently approved by the NCLT on November 4, 2025, and is currently under implementation.
Auditor's Observations
The company's auditors have raised concerns regarding the non-provision of liabilities towards interest and part of the principal loan that was earlier waived under a draft rehabilitation scheme. According to the auditors, these unprovided liabilities amount to Rs. 2,219.48 crore. If accounted for, this would significantly increase the reported loss and loan liabilities of the company.
Going Concern Status
Despite the ongoing insolvency proceedings, the financial statements have been prepared on a going concern basis. The management and the Board of Directors (whose powers are currently suspended) have recommended maintaining the company's status as a "Going Concern" during the CIRP, in line with the requirements of the Insolvency and Bankruptcy Code.
Outlook
The implementation of the approved resolution plan is expected to have a significant impact on Alps Industries' financial position and operations. However, the exact implications will only be clear once the plan is fully executed.
As the company continues to navigate through this critical phase, stakeholders will be closely watching the progress of the resolution plan implementation and its potential to turn around the company's fortunes in the highly competitive textile sector.
Historical Stock Returns for Alps Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.51% | +1.00% | +20.24% | -18.55% | -49.37% | +102.00% |
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