Rishi Techtex Limited announced its unaudited financial results for the third quarter ended December 31, 2025, demonstrating strong operational performance across key financial metrics. The Mumbai-based manufacturer of plastic bags and shade nets reported significant growth in both revenue and profitability compared to the corresponding period last year.

Quarterly Financial Performance

The company's Q3FY26 results showed robust growth momentum with revenue from operations reaching ₹3474.94 lacs, representing a substantial 21.43% increase from ₹3149.17 lacs reported in Q3FY25. Total income, including other income of ₹8.64 lacs, stood at ₹3483.58 lacs for the quarter.

Profitability and Cost Management

The company achieved a net profit of ₹46.47 lacs in Q3FY26, marking a remarkable 51.91% year-on-year increase from ₹30.59 lacs in the same quarter last year. This strong profitability growth was supported by effective cost management, with total expenses rising to ₹3415.98 lacs compared to ₹3102.47 lacs in Q3FY25.

Cost of materials consumed, the largest expense component, increased to ₹2638.03 lacs from ₹2186.83 lacs, while the company benefited from a favorable change in inventories of ₹116.40 lacs. Employee benefits expense rose to ₹381.50 lacs from ₹316.65 lacs, reflecting business expansion activities.

Nine-Month Performance Overview

For the nine-month period ended December 31, 2025, Rishi Techtex maintained its growth trajectory with revenue from operations reaching ₹10427.59 lacs, up 15.81% from ₹9004.18 lacs in the corresponding period of the previous year. The nine-month net profit showed even stronger growth, increasing 65.45% to ₹202.47 lacs compared to ₹122.37 lacs in the previous year.

Corporate Developments

The Board of Directors approved the inclusion of Centennial Finance Private Limited as part of the "Promoter Group" of the company in accordance with SEBI regulations. The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on February 10, 2026.

Financial Position and Outlook

The company maintained a stable capital structure with paid-up equity share capital of ₹739.10 lacs, consisting of shares with a face value of ₹10 each. Basic and diluted earnings per share for Q3FY26 stood at ₹0.63, compared to ₹0.41 in the corresponding quarter last year. The company operates in the single segment of manufacturing plastic bags and shade nets, maintaining its focused business approach.

Rishi Techtex Limited , a manufacturer of plastic bags and shade nets, has announced its unaudited financial results for the second quarter and first half of the fiscal year 2026, ending September 30, 2025. The company's performance shows a mix of growth and challenges in various financial metrics.

Financial Highlights

All figures in Rs. lakhs

Key Observations

1. Revenue Generation: The company reported a total income of Rs. 5,088.62 lakhs for the first half of FY2026, with Rs. 2,843.00 lakhs contributed in the second quarter alone.

2. Expense Management: Total expenses for the six-month period stood at Rs. 12,255.07 lakhs, significantly higher than the reported income. For Q2, expenses were Rs. 2,805.00 lakhs, nearly matching the quarter's income.

3. Profitability: Despite high expenses, Rishi Techtex managed to record a profit before tax of Rs. 537.66 lakhs for H1 FY2026. However, Q2 saw a much smaller profit before tax of Rs. 21.01 lakhs.

4. Tax Implications: The company reported a current tax expense of Rs. 824.80 lakhs for the six-month period, which exceeds the profit before tax figure.

5. Balance Sheet Strength: As of September 30, 2025, Rishi Techtex's total assets stood at Rs. 8,570.08 lakhs.

6. Cash Flow: The company generated a positive cash flow from operating activities, amounting to Rs. 361.49 lakhs for the six-month period.

Corporate Governance

The financial results were reviewed by the audit committee and subsequently approved by the Board of Directors, as per regulatory requirements. This process ensures transparency and accuracy in financial reporting.

Related Party Transactions

The LODR data reveals that Rishi Techtex engaged in significant related party transactions during the half-year period:

1. Centennial Fabrics Limited:

   • Purchase of goods: Rs. 2,704.37 lakhs
   • Sale of goods: Rs. 215.93 lakhs

2. Key Management Personnel:

   • Rent paid to Smita Harshad Patel: Rs. 1.80 lakhs
   • Remuneration to Abhishek Harshad Patel, Jagdish Dokwal, and Gauri Gangal (amounts not specified in the LODR data)

These transactions highlight the company's business relationships and compensation structures for key personnel.

Conclusion

Rishi Techtex Limited's financial results for Q2 and H1 FY2026 present a complex picture. While the company has maintained profitability, the high expenses relative to income and the significant tax expense warrant attention. The positive operating cash flow is an encouraging sign, indicating the company's ability to generate cash from its core business activities. Investors and stakeholders may want to closely monitor the company's expense management and profitability trends in the coming quarters.