Nandan denim Limited has been penalized Rs 84,000 (excluding GST) by BSE Limited after the stock exchange rejected the company's waiver application for alleged non-compliance under Regulation 17(1A) of the SEBI (LODR) Regulations, 2015. The company received official communication regarding the penalty on February 18, 2026.

Regulatory Action Details

The penalty stems from an initial notice received by Nandan Denim Limited on November 28, 2025, from both BSE Limited and National Stock Exchange of India Limited regarding alleged violation of regulatory requirements. In response to this notice, the company filed a waiver application with BSE on December 02, 2025, along with supporting documents.

Company's Response and Obligations

Following BSE's decision to reject the waiver application, Nandan Denim Limited is now required to pay the imposed fine including applicable GST to both BSE and NSE within the prescribed timeframe. The company has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Impact Assessment

According to the company's official disclosure, the penalty will have no material impact on its financial position, operations, or other business activities. The regulatory action details were communicated through proper channels as mandated by SEBI regulations.

Regulatory Compliance Framework

The disclosure was made pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015, and in accordance with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The company's compliance officer, Rinku Patel, signed the disclosure document on February 19, 2026, ensuring transparency with stakeholders and regulatory authorities.

Nandan Denim Limited has reported its unaudited financial results for the quarter and nine months ended December 31, 2025, showing a significant decline in quarterly performance. The Board of Directors approved these results at their meeting held on February 12, 2026.

Financial Performance Overview

The company's Q3FY26 results reflect challenging market conditions with substantial year-on-year declines in key metrics:

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025 showed mixed results compared to the corresponding period in the previous year:

Expense Structure and Profitability

The company's cost structure for Q3FY26 showed proportional adjustments with the revenue decline. Cost of materials consumed decreased to ₹41,120.56 lakhs from ₹82,870.26 lakhs in Q3FY25. Employee benefit expenses remained relatively stable at ₹2,143.65 lakhs compared to ₹2,163.30 lakhs in the previous year. Finance costs decreased to ₹673.95 lakhs from ₹861.91 lakhs, while depreciation and amortization expenses were ₹1,165.09 lakhs versus ₹1,361.57 lakhs in Q3FY25.

Regulatory Compliance Update

The company addressed regulatory matters in its board meeting, specifically regarding non-compliance notices from BSE and NSE under Regulation 17(1A) of SEBI (LODR) Regulations, 2015. The board maintained that there is no substantive non-compliance and has applied for waiver of penalties levied by both stock exchanges. The application dated December 02, 2025 is currently under examination by BSE Limited.

Corporate Structure and Share Capital

The company's paid-up equity share capital remained unchanged at ₹14,414.73 lakhs with a face value of ₹1 per share. This reflects the share subdivision approved by shareholders on September 6, 2024, where each equity share of ₹10 face value was subdivided into 10 shares of ₹1 face value each. The current share capital consists of 1,44,14,71,680 equity shares of ₹1 face value each.