Royal Cushion Vinyl Products Limited has announced its unaudited standalone financial results for the quarter and nine months ended December 31, 2025, revealing deteriorating financial performance amid operational challenges.

Financial Performance Overview

The company's financial metrics showed significant decline across key parameters during the third quarter of FY26:

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, reflected continued financial stress with substantial losses:

Operational Challenges and Expenses

The company faced significant cost pressures during the quarter. Finance costs surged dramatically to ₹223.64 lakh in Q3 FY26 from ₹54.16 lakh in Q3 FY25, representing a substantial increase. Cost of materials consumed stood at ₹863.61 lakh compared to ₹1,021.47 lakh in the previous year quarter.

Employee benefits expenses increased to ₹158.25 lakh from ₹149.22 lakh year-on-year. Other expenses remained elevated at ₹429.69 lakh during the quarter. The company reported a fire incident at its factory premises during the quarter, resulting in expenditure for machinery spare parts replacement, while receiving insurance claims of ₹8.89 lakh.

Key Corporate Developments

The Board of Directors approved the appointment of CS Vikash Mittal as Company Secretary and Compliance Officer effective March 1, 2026. CS Mittal holds membership number FCS 13138 and brings extensive experience in corporate governance, statutory compliance, and SEBI regulations.

Ongoing Corporate Restructuring

The company continues to pursue merger schemes under the Companies Act, 2013. Two significant schemes are in progress - one involving Royal Spinwell and Developers Private Limited with the next hearing scheduled for March 10, 2026, and another involving Natroyal Industries Private Limited approved by the Board in August 2024.

The management maintains its going concern assessment based on expected order book conversions, improved recovery processes, and potential equity capital raising through preferential share issues. The company operates in the PVC flooring and leathercloth segment as its primary business focus.

Royal Cushion Vinyl Products has issued a clarification to BSE Limited regarding recent movements in its equity share price, stating that no undisclosed price-sensitive information exists that could influence trading behavior. The Mumbai-based plastic products manufacturer responded to a surveillance inquiry dated January 5, 2026, from the stock exchange.

Company's Official Response

In its clarification dated January 6, 2026, Royal Cushion Vinyl Products confirmed that it has examined the matter thoroughly and found no information or impending announcements that could impact share price or volume behavior which hasn't been disclosed to the stock exchange. The company emphasized its compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Market-Driven Price Movement

The company attributed the recent price movements to market dynamics rather than any specific corporate developments. According to the official statement, the movement in equity share prices is "purely market driven and may be attributable to general market conditions and investor perception." This clarification suggests that external market factors and investor sentiment are driving the trading activity rather than any undisclosed corporate information.

Regulatory Compliance Assurance

Royal Cushion Vinyl Products reaffirmed its commitment to regulatory compliance and transparency. The company assured BSE that it will continue to promptly disclose any material events or information that could affect the performance or price behavior of its securities, as required under SEBI (LODR) Regulations, 2015.

The clarification was signed by Managing Director Mahesh Shah (DIN: 00054351) and submitted to BSE's Surveillance Department. Such regulatory responses are standard practice when stock exchanges seek explanations for unusual price or volume movements in listed securities.