Trident Limited , a leading textile manufacturer, has reported a robust financial performance for the first quarter ended June 30, 2025, with a significant increase in net profit and plans for a substantial debenture issue.

Financial Highlights

The company's consolidated net profit after tax surged by 89% to INR 1,399.60 crore, compared to INR 738.90 crore in the same quarter last year. This impressive growth in profitability comes despite a slight dip in revenue from operations, which stood at INR 17,068.90 crore, down from INR 17,427.10 crore in the previous year.

Segment Performance

Trident's financial results reveal a mixed performance across its various segments:

• Yarn: Revenue of INR 9,020.30 crore with a profit of INR 700.70 crore
• Towel: Revenue of INR 6,389.30 crore with a profit of INR 476.40 crore
• Bedsheets: Revenue of INR 3,093.90 crore with a profit of INR 447.70 crore
• Paper and Chemicals: Revenue of INR 2,598.30 crore with a profit of INR 733.40 crore

Dividend Declaration

The Board of Directors has declared and paid an interim dividend of 50% (INR 0.50 per equity share) for the quarter, rewarding shareholders for the company's strong performance.

Planned Debenture Issue

In a significant move to raise capital, Trident's Board has approved raising funds up to INR 500 crore through the issuance of non-convertible debentures. This will be done via public or private offering in one or more tranches, subject to shareholders' approval.

Divestment of Subsidiary

During the quarter, Trident Limited divested its entire shareholding in its subsidiary, Trident Home Textiles Limited, for INR 10.69 crore. This strategic move was completed on June 17, 2025, marking the end of Trident Home Textiles Limited as a subsidiary of Trident Limited.

Ongoing Income Tax Proceedings

The company's auditor's report highlighted an ongoing income tax search under Section 132 of the Income Tax Act, conducted in October 2023 at various company locations and subsidiaries. While the company has provided necessary information and responses to the tax department, the management maintains that no material adjustments are required to the financial results based on the current status of the proceedings.

Looking Ahead

With a strong start to the fiscal year and strategic initiatives in place, Trident Limited appears well-positioned for continued growth. The planned debenture issue is expected to provide additional financial flexibility to support the company's future endeavors.

Investors and stakeholders will be keenly watching how Trident leverages its strong Q1 performance and utilizes the funds from the proposed debenture issue to drive further growth and value creation in the coming quarters.

Trident Limited , a prominent textile manufacturer, has come under scrutiny from tax authorities as it received a Goods and Services Tax (GST) notice alleging tax irregularities amounting to ₹518.70 crore. The notice highlights potential discrepancies in the company's tax filings or payments, raising concerns about its tax compliance practices.

Details of the GST Notice

The GST notice served to Trident points to alleged inconsistencies in the company's tax-related documentation or remittances. While the specific nature of the discrepancies has not been disclosed, the substantial sum involved—₹518.70 crore—suggests that the matter could have significant implications for the company's financial position.

Potential Impact on Trident

This development could have several ramifications for Trident:

1. Financial Implications: If the allegations are substantiated, Trident may face a considerable financial burden, potentially affecting its liquidity and profitability.

2. Regulatory Scrutiny: The notice may lead to increased regulatory oversight, possibly extending beyond tax matters.

3. Investor Confidence: The news could impact investor sentiment, potentially influencing the company's stock performance in the short term.

4. Compliance Review: Trident may need to conduct a comprehensive review of its tax compliance procedures to address any systemic issues.

Next Steps

As of now, Trident has not publicly responded to the GST notice. Investors and market observers will be keenly watching for the company's official statement and its plan to address the allegations. The resolution of this matter, whether through clarification, settlement, or legal proceedings, will be crucial for Trident's stakeholders.

It's important to note that receiving a tax notice does not imply guilt, and companies often have the opportunity to present their case and provide clarifications to tax authorities. The coming weeks will be critical as more details emerge about this developing situation.

Shareholders and potential investors are advised to stay informed about any updates from Trident or regulatory bodies regarding this matter, as it could have implications for the company's financial health and market position.