KG Denim Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing significant operational challenges. The textile company reported a net loss of ₹413 lakhs for Q3FY26, marking a sharp reversal from the profit of ₹187 lakhs recorded in the previous quarter.

Financial Performance Overview

The company's quarterly performance showed mixed signals with revenue growth but deteriorating profitability:

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the company's performance remained under pressure:

The net loss of ₹413 lakhs for Q3FY26 was recorded after accounting for ₹759.04 lakhs profit from the sale of non-core assets, which was reported under 'Other Income'.

Segment-wise Performance

The company operates through two main segments - Textiles and Power. The segmentwise revenue breakdown for Q3FY26 showed:

• Textiles segment: ₹812 lakhs revenue with segment result of ₹354 lakhs
• Power segment: No revenue reported with segment loss of ₹(261) lakhs

Leadership Changes

In a significant corporate development, Mrs. Ramaprabha S resigned from her position as Chief Financial Officer effective February 13, 2026, citing personal reasons. The resignation was announced during the Board meeting that approved the quarterly results.

Financial Challenges and Restructuring

The company continues to navigate several financial challenges. As of December 31, 2025, KG Denim has outstanding trade payables of ₹7,884.41 lakhs. Certain creditors have issued recovery notices aggregating ₹913.54 lakhs, of which the company has entered into amicable settlement arrangements for ₹382.80 lakhs.

The company has successfully implemented the State Level Banker's Committee restructuring package under RBI Master Directions on Natural Calamities. However, The South Indian Bank Limited (holding 7% exposure) and one NBFC with outstanding dues of ₹6.50 crore have dissented from the restructuring scheme. The matter remains pending before the RBI Ombudsman after hearings were conducted.

Regulatory Compliance

Pursuant to Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company submitted copies of newspaper publications of its Q3FY26 unaudited financial results to BSE Limited on February 19, 2026:

Balance Sheet Position

The company's financial position shows significant stress with negative net worth of ₹147.34 lakhs as of December 31, 2025. The paid-up equity share capital remains unchanged at ₹2,565 lakhs with a face value of ₹10 per share.

The Board of Directors meeting was held on February 13, 2026, from 5:30 PM to 9:30 PM, where these results were reviewed by the Audit Committee and subsequently approved.

KG Denim Limited has announced that its board of directors will convene on February 13, 2026, to consider the approval of unaudited financial results for the third quarter of fiscal year 2026. The meeting notification was submitted to BSE Limited on January 28, 2026, in compliance with regulatory requirements.

Board Meeting Details

The board meeting is scheduled to address several key agenda items related to the company's financial performance for the reporting period.

Trading Window Restrictions

The company has implemented trading window closure measures in accordance with insider trading regulations. The trading window for all designated persons and their immediate relatives has been closed since January 1, 2026, as previously notified on December 27, 2025.

Regulatory Compliance

The board meeting notification has been filed under Regulation 29 of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015. The company has also posted the notice on its official website in compliance with Regulation 46 requirements.

The notification was signed by M Balaji, Company Secretary and Compliance Officer, who holds ACS membership number 8575. KG Denim Limited operates under CIN L17115TZ1992PLC003798 and trades on BSE with scrip code 500239.