Shri Dinesh Mills Limited , a prominent textile manufacturer, has released its unaudited financial results for the quarter and half-year ended September 30, 2025, alongside a significant corporate restructuring move.

Subsidiary Divestment

The company announced the completion of its divestment from Dinesh Remedies Limited on September 3, 2025. This move follows a binding offer that was approved in October 2024, marking a strategic shift in Shri Dinesh Mills' corporate structure. As a result of this transaction, Dinesh Remedies has ceased to be a subsidiary of Shri Dinesh Mills Limited.

Consolidated Financial Performance

The consolidated financial results for the period include data from two remaining subsidiaries: Fernway Technologies Limited and Stellent Chemicals Industries Limited. Additionally, the results incorporate information from the step-down associate, McGean India Chemicals Private Limited.

Financial Highlights

Here's a snapshot of Shri Dinesh Mills' consolidated financial performance for the half-year ended September 30, 2025:

Audit Observation

The auditors have pointed out that the interim financial information of two subsidiaries was not reviewed by their respective auditors. This unreviewed portion accounts for the total assets of Rs. 1,392.13 lakhs and total revenues of Rs. 88.30 lakhs for the half-year period.

Cash Flow Analysis

The company's cash flow statement reveals the following trends:

The cash flow from investing activities shows a significant year-over-year change, which may be attributed to the divestment of Dinesh Remedies Limited.

Balance Sheet Overview

As of September 30, 2025, Shri Dinesh Mills reported:

This financial snapshot provides insights into the company's current financial position following its recent corporate restructuring.

Shri Dinesh Mills Limited continues to adapt its corporate structure and focus on its core subsidiaries within the textile industry landscape.

Shri Dinesh Mills Limited , a prominent textile manufacturer, has taken a significant step to streamline its operations by divesting its entire stake in its loss-making subsidiary, Dinesh Remedies Limited. The company executed a Share Purchase Agreement on August 27, 2025, marking a strategic move to improve its financial position.

Key Details of the Transaction

• Buyers: Mr. Dixit Rashmikantbhai Patel and his affiliates, Mr. Bharat Ratilal Patel and Mr. Bhailalbhai Patel
• Total Consideration:
  • Rs. 3.14 crores for equity shares
  • Rs. 2.29 crores for preference shares
• Completion Date: Expected by September 15, 2025

Financial Impact

The divestment comes in the wake of persistent losses incurred by Dinesh Remedies Limited. Despite contributing significantly to the consolidated turnover, the subsidiary has been a financial burden on Shri Dinesh Mills. Key financial metrics include:

Strategic Rationale

Shri Dinesh Mills cited the following reasons for the divestment:

1. Persistent losses incurred by Dinesh Remedies
2. No revenue generation from this investment
3. Streamlining operations to focus on core business activities

Corporate Governance and Compliance

The disposal of Dinesh Remedies has been conducted in compliance with regulatory requirements:

• Shareholders approved the disposal through a special resolution via postal ballot on December 14, 2024
• The transaction does not fall under the ambit of related party transactions
• Upon completion, Dinesh Remedies will cease to be a material unlisted subsidiary of Shri Dinesh Mills

Shareholding Details

The Share Purchase Agreement covers the following:

• 1,30,98,095 equity shares of Rs. 10 each
• 20,96,876 4% Optionally Cumulative Convertible Preference Shares (OCCPS) of Rs. 10 each

This strategic move by Shri Dinesh Mills Limited is expected to have a positive impact on its financial health, allowing the company to focus on its core textile business and potentially improve shareholder value in the long term.