Emergent Industrial Solutions Limited has reported a significant default in loan repayment, informing the Bombay Stock Exchange about non-payment of a ₹5.00 crore Inter-Corporate Deposit by Wellspring Healthcare Private Limited. The default was officially declared after the expiry of the stipulated cure period on February 2, 2026.

Default Details and Timeline

The Inter-Corporate Deposit was originally disbursed on December 2, 2024, with a tenure of one year, making it contractually repayable by December 2, 2025. The agreement included a cure period of two months, which provided the borrower additional time until February 2, 2026, to fulfill the repayment obligation.

Company's Response and Recovery Measures

Emergent Industrial Solutions has outlined its approach to address the default situation. The management is actively evaluating the financial implications of the default, including assessment of recoverability and potential accounting treatment in accordance with applicable Accounting Standards. The company continues to take necessary steps to safeguard its financial interests.

The company has initiated appropriate legal steps in accordance with applicable laws to secure recovery of the outstanding dues. Simultaneously, Emergent Industrial Solutions is engaging in constructive discussions with the management of Wellspring Healthcare Private Limited to facilitate an early and amicable resolution.

Impact Assessment

Regulatory Compliance

The disclosure has been made pursuant to Regulation 30 and Regulation 30A read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has assured that it will keep the Stock Exchange informed of any further material developments regarding this matter. This intimation aligns with the company's Policy on Materiality and applicable regulatory provisions.

Emergent Industrial Solutions Limited (EISL) has released its unaudited financial results for the second quarter and first half of the fiscal year 2026, revealing a substantial decline in profits compared to the previous year. The company's Board of Directors approved these results in a meeting held on November 12, 2025.

Key Financial Highlights

Profit Performance

EISL reported a significant decrease in its profit before tax for both the quarter and half-year periods:

• For Q2 FY2026, profit before tax stood at Rs. 38.13 lakhs, down from Rs. 710.11 lakhs in the same quarter of the previous fiscal year.
• The half-year results showed a similar trend, with profit before tax at Rs. 31.71 lakhs, compared to Rs. 703.81 lakhs in H1 FY2025.

Liquidity Position

Despite the drop in profits, EISL's liquidity position has improved substantially:

• Cash and cash equivalents increased to Rs. 5,057.75 lakhs as of September 30, 2025.
• This represents a significant jump from Rs. 176.25 lakhs reported in the previous year.

Corporate Governance

The financial results were reviewed by the Audit Committee and audited by the company's statutory auditors, OP Bagla & Co LLP. This adherence to proper corporate governance practices ensures transparency and reliability of the reported figures.

Business Segment

EISL continues to operate in a single business segment, maintaining its focused approach to operations.

Board Meeting Details

The Board of Directors convened on November 12, 2025, to approve these results. The meeting commenced at 4:00 PM and concluded at 6:30 PM, as disclosed in the company's filing to the Bombay Stock Exchange.

While the substantial increase in cash and cash equivalents is a positive sign for the company's liquidity, the significant drop in profits may raise concerns among investors and stakeholders. The company has not provided specific reasons for the profit decline in the released statement.