Ganesha Ecoverse Limited has announced a significant reversal in its merger strategy following a board meeting held on January 14, 2026. The company's board of directors, acting on the audit committee's recommendation, has reconsidered its earlier decision and now approved the merger of Ganesha Ecoverse into GESL Spinners Private Limited (GSPL), reversing the previously planned structure.

Strategic Reversal in Merger Structure

The board's decision represents a complete reversal from its announcement, which had initially approved GSPL's merger into Ganesha Ecoverse. The new structure designates GSPL as the surviving entity, a change driven by business size considerations and significant financial incentives available to GSPL.

The company stated that the revised structure would facilitate the merged entity's ability to continue availing existing taxation and financial benefits available to GSPL, making it more advantageous for shareholders. The resulting entity will remain listed on the BSE-SME platform with no dilution of shareholders' rights.

Financial Profile Comparison

The merger involves two companies with distinct financial profiles, as detailed in their audited financial statements for the year ended March 31, 2025:

GSPL's significantly larger operational scale and revenue base appear to have influenced the board's decision to position it as the surviving entity.

Business Alignment and Operations

Both companies operate in complementary business segments within the textile and recycling industry. Ganesha Ecoverse deals with plastic and textile products in various forms, including virgin and recycled materials. GSPL specializes in manufacturing recycled spun yarn and sewing thread from recycled polyester staple fiber, creating natural business synergies.

Merger Rationale and Expected Benefits

The board outlined several strategic advantages expected from the merger:

Regulatory Compliance and Next Steps

The merger will proceed under Sections 230 to 232 of the Companies Act, 2013, and applicable SEBI regulations. As GSPL is an associate company of Ganesha Ecoverse, the transaction qualifies as a related party transaction but will be conducted at arm's length in compliance with applicable laws.

Key details including the share exchange ratio and changes in shareholding patterns will be determined following completion of the valuation process. The board meeting, which lasted from 4:00 PM to 5:30 PM, formalized this strategic decision that aims to optimize the combined entity's operational and financial benefits.

Ganesha Ecoverse Limited , formerly known as SVP Housing Limited, has disclosed substantial losses in its unaudited financial results for the half-year ended September 30, 2025. The company reported concerning figures in both its standalone and consolidated statements.

Standalone Performance

On a standalone basis, Ganesha Ecoverse posted a loss of Rs. 129.83 lakh for the half-year period. This marks a significant downturn compared to the profit of Rs. 156.95 lakh reported in the corresponding period of the previous year. The company's total income saw a sharp decline, dropping to Rs. 57.69 lakh from Rs. 721.38 lakh in the same period last year.

Consolidated Results

The consolidated financial results paint an even more challenging picture. The company reported a consolidated loss of Rs. 612.03 lakh for the half-year. This figure includes a substantial share of loss from its associate company, amounting to Rs. 482.20 lakh.

Key Financial Metrics

Factors Contributing to Losses

The company's financial statement reveals several factors contributing to the losses:

1. Fair Value Loss: A significant MTM (Mark-to-Market) loss of Rs. 149.48 lakh was recorded, adjusting the carrying value of equity shares held as current investments.

2. Reduced Revenue: The company reported no revenue from operations for the half-year, compared to Rs. 275.03 lakh in the previous comparable period.

3. Associate Company Performance: The consolidated results were heavily impacted by the share of loss from the associate company, GESL Spinners Private Limited.

Balance Sheet Highlights

As of September 30, 2025, Ganesha Ecoverse's consolidated balance sheet showed:

• Total assets of Rs. 5,545.68 lakh, down from Rs. 6,150.67 lakh as of March 31, 2025.
• Total equity decreased to Rs. 3,474.23 lakh from Rs. 4,086.25 lakh.
• Current assets stood at Rs. 2,516.76 lakh, slightly lower than Rs. 2,639.16 lakh at the end of the previous financial year.

Management Commentary

The company's board of directors, led by Managing Director Sandeep Khandelwal, approved these unaudited financial results on November 14, 2025. The management has not provided specific comments on the performance or future outlook in the released statement.

Auditor's Review

Rajiv Mehrotra & Associates, the company's statutory auditors, conducted a limited review of the financial results. They noted that the consolidated figures include unaudited results of the associate company for the half-year period.