Candour Techtex Reports Significant Revenue Decline and Continued Losses in Q2 FY2026

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:

Segment	Revenue (Rs in Lakhs)	YoY Change
Textile Division	324.83	-12.6%
Plastic Division	493.44	+233.2%
Trading Division	0.00	-100%
Technical Textile Division	180.42	+82.7%

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.37%	+0.23%	+2.72%	+75.85%	+75.44%	+177.83%

Candour Techtex Limited , a textile engineering company, has announced a significant capital raise of INR 198 crore through warrants and preferential allotment. This move aims to support the company's expansion plans in the technical textiles sector.

Key Highlights of the Capital Raise

Particulars	Details
Total Capital Raise	198.00
Preferential Allotment	84.83
Warrants	113.40
Promoter Warrants	75.00

Expansion Plans

Candour Techtex has outlined ambitious expansion plans for its technical textiles business:

Coating Capacity: Increase from 3.8 million meters to 9.5 million meters by FY28
Lamination Capacity: Expand from 6 million to 15 million meters annually

Recent Orders

The company has secured significant orders, demonstrating its strong market position:

INR 20 crore order from Faze Three
INR 29 crore order from ASK Apparels

Use of Funds

While specific details on the use of funds were not provided, the capital raise is expected to support the company's expansion plans and strengthen its position in the technical textiles market.

Investors and market watchers will likely monitor how Candour Techtex utilizes this capital infusion to achieve its growth objectives in the coming years.