Vippy Spinpro Limited announced its unaudited financial results for the quarter ended December 31, 2025, showing a decline in both revenue and profitability compared to the corresponding period last year. The textile company's Board of Directors approved these results during a meeting held on February 13, 2026.

Financial Performance Overview

The company's financial performance for Q3 FY26 reflected challenging market conditions with significant year-on-year declines across key metrics.

Quarterly Results Analysis

Revenue from operations declined to ₹5,549.83 lakhs in Q3 FY26 from ₹6,990.62 lakhs in Q3 FY25. Other income increased to ₹73.97 lakhs compared to ₹43.94 lakhs in the previous year, resulting in total income of ₹5,623.80 lakhs versus ₹7,034.56 lakhs.

Total expenses for the quarter amounted to ₹5,254.29 lakhs compared to ₹6,527.00 lakhs in Q3 FY25. The company benefited from negative finance costs of ₹18.03 lakhs, which included an interest subsidy of ₹81.38 lakhs relating to previous quarters, offset by financial expenses of ₹63.35 lakhs during the quarter.

Nine-Month Performance

For the nine-month period ended December 31, 2025, the company's performance showed similar trends:

Exceptional Items and Labour Code Impact

The company recorded exceptional items of ₹72.61 lakhs during Q3 FY26, attributed to past service costs arising from the implementation of new labour codes notified by the Government of India on November 21, 2025. These codes consolidate and replace existing labour legislations, requiring immediate recognition of past service costs as per Indian Accounting Standard 19.

Expansion Programme Update

Vippy Spinpro's expansion programme remains in progress and is expected to be completed during the last quarter of FY 2025-26. The company continues to invest in growth initiatives despite the current challenging operating environment.

Other Comprehensive Income

The company reported other comprehensive income of ₹4.60 lakhs for Q3 FY26 compared to negative ₹3.15 lakhs in Q3 FY25. Total comprehensive income for the quarter stood at ₹187.57 lakhs versus ₹370.05 lakhs in the previous year. The paid-up equity share capital remained unchanged at ₹587.00 lakhs with a face value of ₹10 per share.

Vippy Spinpro Limited , a key player in the Indian textile industry, has executed a significant term loan facility agreement with HDFC Bank Limited for Rs 208.35 crores to fund its capacity expansion program. The agreement was executed on January 7, 2026, marking a major step in the company's growth strategy.

Major Financing Agreement

The company has secured a substantial term loan facility from HDFC Bank Limited to support its expansion plans. The loan details are structured as follows:

The term loan facility is specifically earmarked for setting up new machinery to enhance the company's production capacity at its Industrial Area facility in Dewas, Madhya Pradesh.

Security and Guarantees

The loan is secured through multiple layers of security to ensure adequate protection for the lender:

• Plant & Machinery: Charge on existing and new plant & machinery
• Personal Guarantees: From Mr. Piyush Mutha and Mr. Praneet Mutha
• Immovable Assets: Exclusive charge on 20,093 square meters of land at Industrial Area AB, Road No. 1, Dewas
• Current Assets: Hypothecation of raw materials, stock in process, finished goods, book debts, consumables, stores & spares, and other current assets
• Fixed Deposits: 10% cash margin and Rs 1 crore DSRA (Debt Service Reserve Account) fixed deposit

Previous Financial Performance

The company's recent financial results for the half-year ended September 30, 2025, showed steady performance with a profit before income tax of Rs 949.06 lakh. Key financial highlights include:

The company had previously been undergoing an expansion program with an estimated cost of Rs 5,902.90 lakh, funded through term loans and internal accruals.

Strategic Expansion Initiative

This latest financing arrangement represents a significant expansion of the company's earlier announced expansion program. The new term loan facility will enable Vippy Spinpro to accelerate its capacity enhancement plans and strengthen its position in the textile industry.

The company has confirmed that this transaction does not involve any related party arrangements and has been executed at arm's length terms. The agreement was disclosed in compliance with SEBI regulations regarding material agreements and credit facilities.