Gaekwar Mills Limited has demonstrated a remarkable financial turnaround in the second quarter of FY26, swinging from a substantial loss to profitability. The textile company submitted revised unaudited financial results for Q2 FY26 and the half-year ended September 30, 2025, following regulatory compliance requirements under SEBI Listing Regulations.

Financial Performance Highlights

The company's quarterly performance showed a dramatic improvement across key metrics:

Half-Year Performance Analysis

The half-year results for FY26 further reinforced the company's improved operational efficiency:

Key Operational Factors

The significant improvement in financial performance was primarily attributed to the absence of premium on debenture redemption charges. In Q2 FY25, the company had written off ₹118.43 lakhs as premium on debenture redemption, which substantially impacted profitability. For the current quarter, no such charges were recorded.

Employee benefit expenses showed a modest increase to ₹0.75 lakhs in Q2 FY26 from ₹0.60 lakhs in Q2 FY25. Other expenses increased to ₹2.45 lakhs from ₹0.55 lakhs in the corresponding previous quarter, but remained well-controlled compared to historical levels.

Balance Sheet Position

The company's financial position as of September 30, 2025, reflected the following key elements:

Debenture Status and Regulatory Compliance

The company disclosed that secured non-convertible debentures worth ₹35 crores (Series A: ₹30 crores, Series B: ₹5 crores) had a redemption date of March 31, 2025. Negotiations with debenture holders for extension are ongoing but not finalized as of the board meeting date. The results were reviewed by the audit committee and approved by the board of directors on November 14, 2025, in compliance with Indian Accounting Standards (Ind AS) and SEBI regulations.

Gaekwar Mills Limited has announced the appointment of Mr. Harsh Vikas Shah as an Additional Independent Director to its Board of Directors. The appointment, effective August 28, 2025, comes with a five-year term, subject to shareholder approval.

Board Approval and Compliance

The Board of Directors of Gaekwar Mills Limited approved the appointment based on the recommendation of the Nomination and Remuneration Committee. The company confirmed that Mr. Shah meets the independence criteria as prescribed under the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

About Harsh Vikas Shah

Mr. Harsh Vikas Shah, aged 28, brings a blend of educational qualifications and diverse professional experience to his new role:

• Education:

  • Master's degree in Business Administration (PGDM) from NMIMS
  • Diploma in Real Estate Management from Thadomal Shahani Center for Management

• Professional Experience:

  • Manager at Euro Pratik Sales Ltd. (Current role with over one year of experience)
  • Export Executive at Macro Bars & Wires (India) Pvt Ltd (2020-2024)
  • Operations/Site Manager at Rajee Constructions (2016-2020)

Appointment Details

The key details of Mr. Shah's appointment are as follows:

Regulatory Compliance

Gaekwar Mills Limited has confirmed that Mr. Shah is not related to any existing Director of the company. Furthermore, in compliance with regulatory requirements, the company has stated that Mr. Shah is not debarred from holding the office of Director by virtue of any order passed by SEBI or any other such authority.

The appointment of Mr. Harsh Vikas Shah is expected to bring fresh perspectives to Gaekwar Mills Limited's Board, leveraging his experience in sales, exports, and operations management. Shareholders will have the opportunity to approve this appointment, potentially strengthening the company's corporate governance structure.