Kaya Limited's Board of Directors has approved a strategic variation in the terms of its preferential issue objects, marking a significant development in the company's capital allocation strategy. The decision was taken during the board meeting held on January 28, 2026, and represents an evolution from the original resolution approved by members on July 22, 2025.

Board Decision Details

The board's approval centers on modifying the objects of the preferential issue to better align with current business requirements and market dynamics. This strategic shift demonstrates the company's commitment to prudent capital allocation and operational efficiency as key drivers for sustainable growth.

Strategic Rationale

The variation in terms reflects Kaya Limited's response to evolving business requirements and the company's strategic focus on maintaining competitive positioning. The board emphasized that this decision aligns fund utilization with prevailing industry trends and competitive dynamics, positioning the company for enhanced long-term growth prospects.

Revised Fund Utilization Framework

Subject to shareholder approval, the company proposes to expand the scope of fund deployment beyond the original parameters. The revised framework encompasses:

• Growth and business expansion initiatives
• Working capital requirements to support operational efficiency
• Optimum utilization of proceeds to maximize shareholder value

This dual-purpose approach ensures that the company maintains flexibility in capital deployment while addressing both strategic growth objectives and operational funding needs.

Regulatory Compliance

The intimation was filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring full compliance with disclosure requirements. Company Secretary and Compliance Officer Nitika Dalmia signed the regulatory filing, confirming the board's formal approval of the variation in preferential issue terms.

The proposed changes require shareholder approval before implementation, maintaining corporate governance standards and ensuring stakeholder participation in significant capital allocation decisions.

Kaya has reported challenging third-quarter financial results, with net losses significantly expanding despite achieving modest revenue growth. The company's performance reflects ongoing operational difficulties as losses widened substantially compared to the previous year.

Financial Performance Overview

The company's Q3 financial metrics present a mixed picture of performance:

Revenue Growth Amid Challenges

Despite the significant increase in net losses, Kaya managed to achieve revenue growth during the quarter. The company's revenue increased to 600 million rupees in Q3, compared to 584 million rupees in the same quarter of the previous year. This represents a year-over-year revenue growth of 2.74%, indicating the company maintained its ability to generate higher top-line income.

Expanding Loss Position

The company's net loss position deteriorated considerably during the quarter. Net losses expanded to 355 million rupees in Q3, representing a substantial increase from the 154 million rupees loss recorded in the corresponding quarter of the previous year. This significant widening of losses indicates mounting operational challenges and increased expenses that offset the modest revenue gains.

Financial Impact Analysis

The contrast between revenue growth and expanding losses suggests that while Kaya was able to increase its sales, the company faced higher operational costs or other expenses that significantly impacted profitability. The loss expansion of over 130% compared to modest revenue growth of less than 3% highlights the challenging operating environment and potential efficiency issues within the organization.