Rudra Ecovation Limited reported its unaudited financial results for the third quarter ended December 31, 2025, showing improved performance compared to the previous year despite continuing losses. The textile manufacturer, formerly known as Himachal Fibres Limited, announced these results following a board meeting held on February 13, 2026, in compliance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

The company's financial metrics for Q3FY26 demonstrated mixed results with revenue growth offset by operational challenges:

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, Rudra Ecovation showed consistent improvement in key financial parameters:

Operational Cost Structure

The company's expense breakdown for Q3FY26 revealed significant cost components affecting profitability. Cost of materials consumed stood at ₹498.15 lakhs, representing the largest expense category. Employee benefits expense reached ₹127.39 lakhs, while finance costs decreased to ₹26.93 lakhs from ₹52.62 lakhs in the previous year quarter.

Other operational expenses included depreciation and amortization of ₹29.96 lakhs and other expenses totaling ₹87.48 lakhs. The total expenses for the quarter amounted to ₹956.11 lakhs against total revenue of ₹853.63 lakhs.

Corporate Developments

Rudra Ecovation has filed an application for merger and amalgamation with Shiva Textfabs Ltd. with the National Company Law Tribunal (NCLT) on September 23, 2025. This application remains pending for final order, representing a significant corporate restructuring initiative.

The company also addressed its preference share obligations during the period. Originally, 3,60,000 4% Non-Cumulative Redeemable Preference Shares worth ₹100 each were due for redemption on August 31, 2025. Following approval from preference shareholders through a Special Resolution at an Extraordinary General Meeting held on August 25, 2025, the redemption period has been extended to August 31, 2026.

Regulatory Compliance and Business Operations

The financial results were prepared in accordance with Indian Accounting Standards prescribed under section 133 of the Companies Act, 2013, based on recommendations of the Audit Committee. The complete financial results along with the Limited Review Report are available on stock exchange websites and the company's official website.

Rudra Ecovation operates primarily in the textile manufacturing sector, focusing on yarns and fabrics production. The company operates as a single business segment, eliminating the need for segment reporting under Ind AS 108 'Operating Segments'. The earnings per share for Q3FY26 stood at ₹(0.08) on both basic and diluted basis, compared to ₹(0.12) in the corresponding quarter of the previous year.

Rudra Ecovation Limited has announced the forfeiture of ₹6.47 crores from convertible warrants after certain warrant holders failed to exercise their conversion option within the regulatory deadline. The company informed BSE Limited on January 13, 2026, about the non-exercise of conversion rights for 26.87 lakh warrants, resulting in forfeiture of the initial subscription amount.

Warrant Allotment Details

The company had originally allotted 2.08 crore convertible warrants to 27 allottees on July 11, 2024, on a preferential basis. The warrants were issued at ₹48 per warrant, with warrant holders required to pay 25% of the issue price as initial subscription amount at the time of allotment. The total initial amount collected was ₹24.92 crores.

Forfeiture Breakdown

Two warrant holders failed to exercise their conversion option within the 18-month deadline that ended on January 10, 2026. The forfeiture affects both promoter and non-promoter categories, with the total forfeited amount calculated at 25% of the unconverted warrants' value.

Regulatory Compliance

The forfeiture action complies with Regulation 169(3) of Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. Under these regulations, warrant holders must exercise their conversion option within 18 months from the allotment date, failing which the initial subscription amount is liable for forfeiture.

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, by informing the stock exchange about this development. The intimation was signed by Nancy Singla, Company Secretary and Compliance Officer, and the information has been made available on the company's website at www.rudraecovation.com .

Impact on Company Finances

The forfeiture results in the company retaining ₹3.22 crores from the two affected warrant holders, representing 25% of their unconverted warrants' value. This amount was originally collected as initial subscription money and will now be absorbed into the company's finances as the conversion deadline has passed without exercise of the option by these specific warrant holders.