Alok Industries Limited has announced that its subsidiary, Alok Industries International Limited (AIIL), has entered into an agreement to sell its entire stake in Czech textile manufacturing unit Mileta a.s. The buyer, CRESCON a.s., will acquire the stake for a cash consideration of EUR 558,825, equivalent to approximately ₹5.00 crore.

Transaction Details

The Share Purchase Agreement was signed on December 16, with the following key details:

About Mileta a.s.

Mileta a.s. operates in the textile manufacturing sector with diversified business activities including manufacturing of textile fibers, fabrics, and other textile goods. The company also engages in wholesale trade, yarn dyeing, and chemical processing of fabrics.

Financial Performance

Mileta's financial contribution to Alok Industries' consolidated operations shows moderate scale:

For context, Alok Industries reported a consolidated net worth of negative ₹16,755.15 crore, highlighting the company's ongoing financial restructuring efforts.

Transaction Structure and Timeline

The Share Purchase Agreement is subject to certain customary closing conditions typical of such transactions. The deal is structured as a straightforward asset divestment with completion expected by March 2026. Upon successful closure, Mileta will cease to be a subsidiary of Alok Industries, effectively removing its operations from the company's consolidated financial statements.

CRESCON, a.s. does not belong to the promoter, promoter group, or group companies of Alok Industries, making this a non-related party transaction. The company received intimation about the SPA execution on December 16, 2025, at 5:48 PM, ensuring compliance with disclosure requirements under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

Alok Industries Limited , a prominent player in the textile industry, has reported its financial results for the half year ended September 30, 2025, showing a reduction in losses compared to the previous year.

Financial Highlights

Alok Industries reported a net loss of Rs 378.45 crore for the half year ended September 30, 2025, compared to a loss of Rs 458.11 crore in the same period last year, marking a 17.39% reduction in losses.

The company's revenue from operations decreased slightly to Rs 1,785.71 crore from Rs 1,821.51 crore year-on-year, representing a 1.96% decline.

Operational Performance

A significant improvement was seen in the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which turned positive at Rs 61.45 crore for the half year, compared to a negative figure in the previous year. This shift indicates enhanced operational efficiency and cost management.

Exceptional Items

The company recorded exceptional gains of Rs 30.85 crore, primarily from insurance proceeds and sale of tornado-damaged assets, which contributed positively to its financial performance.

Balance Sheet and Financial Position

Despite the improvement in its loss position, Alok Industries continues to face significant financial challenges. As of September 30, 2025, the company reported:

• Accumulated losses of Rs 23,246.85 crore
• Current liabilities exceeding current assets by Rs 112.04 crore

Future Outlook

The management has prepared the financial results on a going concern basis. This decision is supported by:

1. Growth projections for the textile industry
2. Positive cash flow projections for the company

The management remains focused on leveraging these factors to navigate the current financial challenges and continue on the path to recovery.

Investors and stakeholders will be closely monitoring the company's performance in the coming periods to assess the sustainability of this improvement trend and the effectiveness of the ongoing turnaround efforts.

While the reduction in losses and the positive EBITDA are encouraging signs, Alok Industries still faces a significant task in addressing its accumulated losses and improving its overall financial position.