TUNI Textile Mills Limited has delivered impressive financial results for the third quarter of FY26, demonstrating strong operational performance across key metrics. The Mumbai-based textile company reported significant growth in both revenue and profitability for the quarter ended December 31, 2025.

Financial Performance Highlights

The company's quarterly performance showed remarkable improvement across all major financial parameters:

Nine-Month Performance Analysis

The company's year-to-date performance for the nine months ended December 31, 2025, showed sustained growth momentum:

Operational Metrics and Cost Structure

The company's operational efficiency improved during the quarter, with total expenses rising to ₹4,426.73 lakh from ₹1,994.11 lakh in Q3FY25. Key expense components included:

• Purchase of stock-in-trade goods: ₹4,752.68 lakh
• Cost of material consumed: ₹21.43 lakh
• Finance costs: ₹67.40 lakh
• Employee benefits expense: ₹53.20 lakh
• Other expenses: ₹69.93 lakh

The company benefited from favorable inventory changes, with a positive impact of ₹542.48 lakh compared to an increase of ₹21.30 lakh in the previous year quarter.

Rights Issue Development

During Q3FY26, TUNI Textile Mills attempted to raise ₹42.32 crore through a rights issue of equity shares to existing shareholders. However, the rights issue was unsuccessful due to under-subscription and subsequently devolved. No equity shares were allotted under this issue. The company incurred expenses of ₹29.04 lakh related to the rights issue, which were charged to the profit and loss statement in accordance with applicable accounting standards.

Balance Sheet Position

The company maintained a stable capital structure with paid-up equity share capital of ₹1,306.31 lakh, consisting of shares with a face value of ₹1.00 each. Other equity increased to ₹188.03 lakh as of December 31, 2025, compared to ₹55.72 lakh in the previous year, reflecting the company's improved retained earnings position.

Regulatory Compliance

The financial results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on January 28, 2026. The results underwent limited review by statutory auditors K. K. Jhunjhunwala & Co., Chartered Accountants, in compliance with Regulation 33 of SEBI LODR Regulations, 2015. The financial statements were prepared in accordance with Indian Accounting Standards (Ind-AS) as prescribed under the Companies Act, 2013.

Tuni Textile Mills Limited has announced that its rights issue has failed to meet the minimum subscription requirements, leading to the devolution of the entire offering. The Board of Directors, in a meeting held on December 24, 2025, formally approved the devolution after the issue failed to achieve the mandatory 90% minimum subscription threshold.

Rights Issue Devolution Details

The rights issue, which was designed to raise ₹42.32 crores through the issuance of equity shares, could not attract sufficient investor participation. The company had offered 42,32,44,440 equity shares of face value ₹1.00 each at an issue price of ₹1.00 per share on a rights basis to eligible shareholders.

Regulatory Compliance and Timeline

The rights issue was conducted in accordance with SEBI regulations, with the offering period running from November 24, 2025, to December 23, 2025. However, as per Regulation 86(2) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the company was required to achieve a minimum subscription of 90% of the issue size, which was not met.

Refund Process and Next Steps

Following the devolution decision, the company will not proceed with the allotment of equity shares under the failed rights issue. Tuni Textile Mills has initiated the refund process for investors who had applied for the rights issue. The company is coordinating with Purva Sharegistry (India) Pvt. Ltd, the Registrar and Transfer Agent (RTA), to provide instructions for refunding and unblocking amounts lying under ASBA (Applications Supported by Blocked Amount) accounts.

Impact on Corporate Plans

The failure of the rights issue represents a significant setback for the company's fundraising objectives. The devolution means that Tuni Textile Mills will need to explore alternative funding mechanisms to meet its capital requirements. The company had previously demonstrated strong regulatory compliance by publishing advertisements across multiple newspapers and maintaining transparent communication throughout the rights issue process.

The Board's swift decision-making process, with the meeting concluding within 15 minutes of commencement, indicates the clear-cut nature of the devolution decision based on subscription data. Investors who participated in the rights issue can expect their blocked funds to be released through the established refund mechanism coordinated between the company, RTA, and banking partners.