Arvind Limited has formally addressed regulatory non-compliance issues through its Board of Directors, following penalty notices received from both BSE and NSE for violations of SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations during the quarter ended 30th September, 2025.

Regulatory Non-Compliance and Penalties

The company faced penalties for non-compliance with Regulation 17(1) under SEBI LODR Regulations 2015, which pertains to board composition requirements. Both stock exchanges imposed identical penalty amounts on the textile manufacturer.

The NSE penalty breakdown shows the company was non-compliant for 69 days at ₹5,000 per day, resulting in a basic fine of ₹3,45,000 plus 18% GST of ₹62,100, totaling ₹4,07,100.

Board Resolution and Corrective Action

During the Board meeting held on 30th January, 2026, directors formally noted the regulatory violations and subsequent penalties. The Board emphasized that compliance was restored through the appointment of Mr. Gokul Murgesh Jayakrishna as an Independent Director, effective from 8th September, 2025.

Company's Position on Non-Compliance

The Board clarified that the delay in appointing the Independent Director was attributed to the time required for identifying a suitable candidate. Directors specifically noted there was no mala fide or willful intent on the part of the company or its directors regarding the compliance delay.

Regulatory Framework and Consequences

The penalties were imposed under SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11th November, 2024, which outlines standard operating procedures for imposing fines in case of non-compliance with listing regulations. The exchanges had warned of potential consequences including:

• Freezing of entire promoter shareholding in the company and other securities
• Transfer to 'Trade for Trade' basis or Z Category classification for consecutive defaults
• Suspension of trading in company securities

Communication and Disclosure

As required under SEBI regulations, the company has disclosed the penalty notices and board comments to both stock exchanges. The matter was formally placed before the Board of Directors as mandated by regulatory requirements, with proper documentation submitted to BSE and NSE for public dissemination.

Arvind Limited has reported its consolidated financial results for the third quarter, showing a net profit of ₹980 million compared to ₹1.03 billion achieved in the same quarter of the previous year. The textile and retail conglomerate experienced a year-on-year decline in its bottom-line performance during the reporting period.

Financial Performance Overview

The company's consolidated net profit figures demonstrate the financial challenges faced during the quarter. The comparison with the previous year's corresponding period provides insight into the company's current operational performance.

Year-on-Year Comparison

The year-on-year comparison reveals a decrease in consolidated net profit from ₹1.03 billion to ₹980 million. This decline reflects the operating environment and business conditions encountered by Arvind Limited during the third quarter period.

The financial results indicate that the company faced headwinds in maintaining its previous year's profitability levels. The consolidated nature of these results encompasses the performance across Arvind Limited's various business segments and subsidiaries.

Business Context

As a prominent player in the textile and retail industry, Arvind Limited's quarterly performance serves as an indicator of broader sector trends. The reported figures represent the company's consolidated operations, providing a comprehensive view of its financial standing during the third quarter period.