Responsive Industries Limited reported a challenging third quarter for FY26, with financial performance significantly impacted by external trade policy changes. The company submitted its investor presentation on February 24, 2026, highlighting temporary headwinds affecting profitability during the quarter.

Financial Performance Overview

The company's Q3FY26 results reflected the impact of US trade policy changes on its export-oriented business model. Chairman Rishabh Agarwal noted that higher import tariffs imposed by the United States on select products exported from India led to short-term pricing adjustments and partial absorption of incremental costs.

Nine-Month Performance

For the nine-month period ending Q3FY26, the company demonstrated relatively better resilience compared to quarterly performance, though still showing year-on-year declines.

Business Positioning and Market Outlook

Responsive Industries positions itself as India's integrated materials and flooring powerhouse, operating manufacturing facilities in India and China. The company serves over 5,000 SKUs across 25+ industries and exports to 70+ countries. With 30+ years of experience, the company has achieved significant growth with 8x PAT growth over FY23-25.

The company's revenue composition shows strong diversification with vinyl flooring accounting for 83% of revenue, supported by synthetic leather and specialty materials segments. The domestic business consistently contributes 60-65% of revenue, providing stability, while exports contributed ₹247 crore in FY25.

Management Outlook and Recovery Expectations

Management emphasized that the current quarter's impact represents a transitory, single-quarter exception rather than a structural change in operating fundamentals. Recent policy developments indicating reversal and rationalization of tariffs are expected to restore the company's competitive position in key export markets.

For the next three years, the company expects to deliver 12-15% revenue growth driven by richer product mix and deeper market penetration. The company aims to sustain EBITDA margins in the 20-24% range, supported by mix improvement and operating leverage. Export contribution is expected to rise as US customer onboarding progresses, with the company maintaining RoE in the mid-teens range of 15-18%.

Responsive Industries Limited has received disclosure from its promoter group entity Fairpoint Tradecom LLP regarding the creation of a pledge on 3,00,000 shares. The pledge was created in favor of O J Financial Services Limited for personal borrowing purposes, as disclosed to BSE Limited and National Stock Exchange of India Limited on February 23, 2026.

Pledge Details and Shareholding Impact

The pledge creation took place on February 20, 2026, involving 3,00,000 shares representing 1.22% of the company's total share capital. This transaction has increased Fairpoint Tradecom LLP's total encumbered shareholding from 34,99,971 shares to 37,99,971 shares.

Promoter Group Holdings and Encumbrance Status

Fairpoint Tradecom LLP maintains a total holding of 2,46,50,000 shares in Responsive Industries Limited, representing 9.25% of the total share capital. Following this latest pledge creation, the promoter group's encumbered shares now constitute 15.41% of the total share capital.

Regulatory Compliance and Disclosure

The disclosure was made in compliance with Regulation 31(1) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, and Regulation 7(2) of SEBI (Prohibition of Insider Trading) Regulations, 2015. The company confirmed that the encumbered shares represent neither 50% or more of promoter shareholding nor 20% or more of total share capital.

The pledge was created with a security cover value of ₹5,46,00,000 based on the share value on the date of the agreement. O J Financial Services Limited, the beneficiary of the pledge, operates in activities auxiliary to financial intermediation and is not classified as a scheduled commercial bank, public financial institution, NBFC, or housing finance company.

Corporate Communication

Mohini Sharma, Company Secretary and Compliance Officer of Responsive Industries Limited, digitally signed and submitted the disclosure documents to both stock exchanges on February 24, 2026. Krishna Kumar Agarwal, Designated Partner of Fairpoint Tradecom LLP (DIN: 00093874), signed the original disclosure on behalf of the promoter group entity on February 23, 2026.