Loyal Textiles Limited has provided clarification to BSE Limited regarding the delayed submission of resignation documentation for its former Chief Operating Officer, addressing regulatory compliance concerns under SEBI listing obligations.

Regulatory Query and Response

The company received an email from BSE Limited on January 10, 2026, seeking additional details regarding a corporate announcement filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, originally submitted on June 9, 2025. The query pertained to incomplete documentation accompanying the resignation disclosure of R.M. Shanmugam from his position as Chief Operating Officer.

Documentation Challenges

Loyal Textiles explained that the resignation letter was not submitted along with the original corporate announcement because it could not be obtained from the separated employee at that time. The company stated: "The resignation letter of Mr. R.M. Shanmugam as Chief Operating Officer (COO) of the Company with effect from 12th June 2025 was not submitted along with the corporate announcement with respect to his resignation disclosed on 9th June 2025 on account that resignation letter was not able to obtained from the separated employee, hence not able to submit the letter within a period of seven days from the date of resignation taking effect."

Uniform Disclosure Approach

The company noted that it had previously addressed a similar query from the National Stock Exchange of India Limited through communication dated October 23, 2025. To maintain parity and ensure uniform disclosure across both stock exchanges, Loyal Textiles submitted the same clarification and documentation to BSE Limited.

Resolution and Compliance

Through continued efforts, the company successfully obtained the resignation letter dated October 9, 2025, which has now been submitted to BSE for reference and records. The textile manufacturer emphasized its commitment to complying with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in both letter and spirit at all times.

The clarification was signed by CS. Dr. V. Rajesh, Company Secretary and Compliance Officer, who requested that BSE take the explanation on record and treat the matter as duly complied with. The company operates as a Four Star Export House recognized by the Government of India and maintains integrated management system certifications.

Loyal Textile Mills Limited , a prominent player in the Indian textile industry, has reported a significant reduction in its standalone net loss for the quarter ended September 30, 2025. The company's strategic initiatives to streamline operations and focus on high-value segments have begun to show positive results, despite ongoing challenges in the export market.

Financial Performance

The company's standalone financial results for Q2 FY2025 reveal:

While the revenue from operations decreased by 21.09% compared to the previous quarter, Loyal Textile Mills managed to significantly narrow its losses, indicating improved operational efficiency.

Exceptional Items and Strategic Moves

The quarter saw some notable exceptional items:

1. Sale of Assets: The company recorded an exceptional income of ₹10.72 crore from the sale of windmills and plant machinery, aligning with its asset monetization strategy.

2. Export Inventory Provision: A provision of ₹10.22 crore was made for export inventory affected by recent tariff developments on textile imports from India. The management is actively exploring alternate export markets and pricing strategies to mitigate this impact.

Business Realignment and Future Outlook

Loyal Textile Mills has made significant progress in its business realignment plan:

• Exiting low-margin operations
• Consolidating production to enhance efficiency
• Focusing on high-value technical textiles and protective garments

These efforts have led to improved performance, with EBITDA turning positive during the quarter. The company continues to advance its asset monetization plan to strengthen liquidity and support the ongoing turnaround.

Management Commentary

The management expressed confidence in achieving profitability in the coming year, citing:

• Implemented measures showing positive results
• Further planned actions
• A strong order book

Consolidated Performance

On a consolidated basis, which includes the company's joint venture Gruppo P&P Loyal SPA Italy, the results show:

The joint venture contributed a share of profit of ₹3.98 crore for the quarter, partially offsetting the standalone losses.

Auditor's Review

The statutory auditors, Brahmayya & Co., have conducted a limited review of the financial results. They emphasized the company's initiatives towards asset monetization and operational rationalization, noting management's confidence in achieving operational profitability in the near term.

As Loyal Textile Mills navigates through its transformation phase, the market will be closely watching the company's ability to sustain its improved performance and successfully execute its turnaround strategy in the coming quarters.