N R Agarwal Industries Limited promoters have created significant encumbrance on their shareholdings as part of a non-disposal undertaking against term loan facilities. The comprehensive disclosure, made under Regulation 31 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, reveals detailed encumbrance history and current arrangements involving 73.55% of the company's total share capital.

Current Encumbrance Structure

The latest encumbrance creation took place on February 16, 2026, involving all three promoters of the company. The arrangement serves as collateral for term loan facilities and represents a continuation of the company's structured financing arrangements.

Comprehensive Encumbrance History

The disclosure provides detailed information about all encumbrance events, showing the evolution of the company's financing arrangements over time. The encumbrance history demonstrates a structured approach to securing term loan facilities.

Lending Arrangement Details

The current encumbrance involves multiple financial institutions with SBICAP Trustee Company Limited serving as the security trustee. The arrangement has been structured to benefit the listed company through term loan facilities.

Key Participants and Structure

• Security Trustee: SBICAP Trustee Company Limited
• Previous Lenders: Axis Bank Limited (for November 2025 arrangement)
• Purpose: Against term loan facilities for company benefit
• Security Cover Ratio: 1.33 (share value to loan amount)

Regulatory Compliance and Documentation

The disclosure was filed on February 17, 2026, with all three promoters digitally signing the comprehensive document. The company's shares are listed on BSE Limited and National Stock Exchange of India Limited.

Impact on Corporate Structure

The non-disposal undertaking ensures that encumbered shares remain with promoters while serving as security for term loan facilities. This arrangement provides lenders with adequate security cover while allowing promoters to retain operational control and voting rights in the company. The structured financing approach demonstrates the company's commitment to maintaining transparency in its borrowing arrangements while securing necessary capital for business operations.

N R Agarwal Industries Limited has announced strong financial results for the third quarter of fiscal year 2026, showcasing significant growth across key performance metrics. The paper and paper boards manufacturer reported robust revenue expansion and improved profitability for the quarter ended December 31, 2025.

Financial Performance Highlights

The company's quarterly performance demonstrated substantial growth momentum, with revenue from operations reaching Rs. 56,322.69 lakhs compared to Rs. 41,791.21 lakhs in the corresponding quarter of the previous year. This represents a notable 34.77% year-on-year increase, reflecting strong operational execution and market demand.

Profitability and Operational Efficiency

The company maintained healthy profitability margins despite increased operational scale. Net profit after tax for Q3FY26 stood at Rs. 1,442.61 lakhs, representing a 13.35% increase from Rs. 1,272.65 lakhs in Q3FY25. Profit before tax reached Rs. 2,623.63 lakhs compared to Rs. 925.86 lakhs in the previous year's corresponding quarter.

Total expenses for the quarter amounted to Rs. 53,925.71 lakhs, with cost of materials consumed being the largest component at Rs. 39,062.47 lakhs. The company benefited from favorable inventory changes, recording a positive impact of Rs. 1,509.27 lakhs from changes in inventories of finished goods and work-in-progress.

Nine-Month Performance

For the nine-month period ended December 31, 2025, N R Agarwal Industries demonstrated consistent growth trajectory. Revenue from operations reached Rs. 154,005.28 lakhs, marking a 29.05% increase from Rs. 119,329.63 lakhs in the corresponding nine-month period of the previous year.

Exceptional Items and Tax Impact

The company recorded exceptional items totaling Rs. 550.76 lakhs during the nine-month period, including Rs. 106.47 lakhs impact from Labour Code implementation and Rs. 444.29 lakhs loss on assets discarded. The quarter ended December 31, 2025 saw a deferred tax expense of Rs. 1,181.02 lakhs, contributing to the overall tax expense of Rs. 1,181.02 lakhs.

Corporate Governance and Compliance

The financial results were reviewed by the Audit Committee and approved by the Board of Directors on February 11, 2026. The company's statutory auditors, GMJ & Co, conducted a limited review of the financial results and provided an unmodified conclusion. The company operates in the manufacture and sale of paper and paper boards business, which constitutes its single operating segment as per Indian Accounting Standards.