Candour Techtex Limited , formerly known as Chandni Textiles Engineering Industries Ltd, has reported a substantial decline in revenue and continued losses for the quarter ended September 30, 2025. The company's financial results reveal challenges across its diverse business segments.

Revenue and Profitability

The company's revenue from operations fell sharply to Rs 1,029.06 lakhs in Q2 FY2026, down from Rs 3,367.25 lakhs in the previous quarter. This represents a significant quarter-on-quarter decline of approximately 69.4%. The net loss for the quarter stood at Rs 108.47 lakhs, a slight improvement from the Rs 119.71 lakhs loss reported in the prior quarter.

Segment Performance

Candour Techtex operates across multiple segments, including textile, plastic, trading, and technical textile divisions. The segment-wise performance for Q2 FY2026 is as follows:

The trading division, which has been a significant contributor to overall revenue in previous periods, reported no revenue for the current quarter. This absence of trading activity appears to be a major factor in the company's overall revenue decline.

Financial Position

As of September 30, 2025, Candour Techtex reported total assets of Rs 8,118.84 lakhs, with non-current assets at Rs 5,406.43 lakhs and current assets at Rs 2,712.41 lakhs. The company's total equity stood at Rs 4,233.60 lakhs.

Management Actions

The company's board of directors approved these unaudited financial results in a meeting held on November 14, 2025. Additionally, Candour Techtex has recently issued a corrigendum to its Extra Ordinary General Meeting (EGM) notice dated October 20, 2025, providing additional details and clarifications regarding a proposed preferential issue of equity shares and warrants.

Outlook

While the plastic and technical textile divisions showed year-over-year growth, the significant decline in overall revenue and continued losses present challenges for Candour Techtex. The company may need to address the performance of its trading division and explore strategies to improve profitability across all segments in the coming quarters.

Investors and stakeholders will likely be watching closely to see how the company navigates these financial headwinds and whether the proposed preferential issue will strengthen its capital position and support future growth initiatives.

Candour Techtex Limited , a textile engineering company, has announced a significant capital raise through a preferential allotment, as approved by its Board of Directors. The move aims to bolster the company's financial position and support its growth initiatives.

Key Highlights of the Capital Raise

Shareholding Impact

The preferential allotment is expected to have a significant impact on the company's shareholding structure:

*Post allotment of Equity Shares and upon full conversion of warrants, on a fully diluted basis.

Investor Participation

The capital raise has attracted a diverse group of investors:

• Equity Shares: 191 investors
• Convertible Warrants: 86 investors

Notable investors include:

• SV Enterprises (300,000 warrants)
• Amera Hiya Sachin (131,000 warrants)
• Kadoli Investment Limited (500,000 warrants)

Use of Funds

While specific details on the use of funds were not provided, capital raises of this nature are typically aimed at strengthening the company's balance sheet, supporting expansion plans, or funding new initiatives.

Regulatory Approval and Timeline

Candour Techtex plans to seek shareholder approval for the preferential allotment at an Extraordinary General Meeting (EGM) scheduled for November 20, 2025. The warrants will be convertible into equity shares within 18 months from the date of allotment.

Investors and market watchers will likely monitor how Candour Techtex utilizes this capital infusion in the coming months.