Reliance Chemotex , a key player in the yarn manufacturing sector, has announced its financial results for the second quarter of fiscal year 2026, showcasing a notable improvement in profitability.

Financial Highlights

The company reported a net profit of Rs. 165.28 lacs for the quarter ended September 30, 2025, marking a significant 16% increase from Rs. 142.43 lacs in the corresponding quarter of the previous year. This growth in profitability comes despite a challenging economic environment.

Key financial metrics for Q2 FY2026 include:

Operational Performance

The company's revenue from operations saw an 8.65% year-on-year increase, rising to Rs. 9,952.44 lacs in Q2 FY2026 from Rs. 9,160.02 lacs in Q2 FY2025. This growth indicates a robust demand for the company's yarn products.

Profitability and Efficiency

Reliance Chemotex has demonstrated improved operational efficiency, with profit before tax surging by 215.18% to Rs. 106.53 lacs in Q2 FY2026, compared to Rs. 33.80 lacs in the same quarter last year. This substantial increase in profitability, despite a modest rise in revenue, suggests effective cost management and operational optimization.

Half-Year Performance

For the half-year ended September 30, 2025, the company reported:

• Total income of Rs. 19,263.81 lacs, a slight increase from Rs. 19,204.96 lacs in the previous year.
• Net profit of Rs. 271.61 lacs, up from Rs. 201.19 lacs, representing a 35% growth.

Balance Sheet Strength

As of September 30, 2025, Reliance Chemotex maintains a strong balance sheet with total assets of Rs. 47,868.52 lacs. The company's equity position remains robust with a total equity of Rs. 13,979.35 lacs.

Corporate Governance Update

In a separate development, the company's Board of Directors has approved a request from Mr. Nand Gopal Khaitan for reclassification from the 'Promoter and Promoter Group' category to the 'Public' category. Mr. Khaitan, who holds 100 shares (0.00% of equity), stated that he had no control over the company's affairs and was appointed as a Director in his professional capacity as a lawyer.

Investors and stakeholders are advised to monitor future announcements for any potential impacts of this reclassification on the company's governance structure.

The financial results underscore Reliance Chemotex's resilience and ability to enhance profitability in a competitive market environment. As the company continues to focus on its core competencies in yarn manufacturing, stakeholders will be watching closely to see if this positive momentum can be maintained in the coming quarters.

Reliance Chemotex Industries Limited has received a request from Nand Gopal Khaitan, currently classified as a promoter, seeking reclassification to the public category shareholder. This move comes as part of the company's compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Reclassification Request

Reasons for Reclassification

Khaitan has provided several reasons for his reclassification request:

1. Limited shareholding and control: He holds only 100 shares and states he never had control over the company's affairs, either directly or indirectly.
2. Professional capacity: Khaitan was appointed as a director in his professional capacity as a lawyer and senior partner of Khaitan & Co. law firm.
3. No special rights or control: He confirms that he and related persons:
   • Do not hold more than 10% of total voting rights
   • Do not exercise control over company affairs
   • Have no special rights
   • Are not represented on the board of directors
   • Are not key managerial persons

Compliance with SEBI Regulations

Khaitan has confirmed his compliance with Regulation 31A of the SEBI LODR Regulations, including:

• Not holding more than 10% of the total voting rights
• Not exercising control over the company's affairs
• Absence of any special rights or informal arrangements
• No representation on the company's board of directors
• Not acting as a key managerial person

He has also committed to continuing compliance with these conditions post-reclassification.

Next Steps

Reliance Chemotex Industries Limited has stated that it will:

1. Place this request before its Board of Directors in the upcoming board meeting
2. Inform stock exchanges of the outcome in compliance with applicable regulations

This reclassification request, if approved, would alter the company's shareholding structure and potentially impact its regulatory obligations. Shareholders and investors should monitor further announcements from the company regarding the outcome of this request.