Nivaka Fashions Limited has been penalized by two major stock exchanges for delayed regulatory filing, highlighting the importance of timely compliance with SEBI regulations. The company received penalty notices from both BSE Limited and Metropolitan Stock Exchange of India Limited for failing to submit its shareholding pattern within the prescribed timeline.

Penalty Details and Non-Compliance

The regulatory violations stem from the company's delayed submission of shareholding pattern under Regulation 31 of SEBI (LODR) Regulations, 2015. The penalties were imposed for the quarter ended December 30, 2025, with specific details outlined below:

Company's Response and Future Compliance

Nivaka Fashions Limited acknowledged the delay in its official communication to stakeholders, describing the non-compliance as "procedural in nature." The company's Managing Director, Mr. Bhavin Jain (DIN: 00741604), signed the intimation notice dated February 13, 2026, addressing both stock exchanges and public stakeholders.

The company has committed to implementing necessary measures to prevent future regulatory violations. Management emphasized that steps have been taken to ensure strict compliance with applicable regulatory requirements going forward.

Regulatory Framework and Implications

The penalties were levied under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates timely disclosure of material events and information. The shareholding pattern submission requirement under Regulation 31 is a critical compliance obligation for listed companies, ensuring transparency in ownership structure for investors and market participants.

This regulatory action serves as a reminder to listed companies about the importance of maintaining strict adherence to SEBI's disclosure timelines and the financial consequences of non-compliance.

Nivaka Fashions Limited has released its unaudited financial results for the first quarter of the fiscal year 2026, revealing a substantial decline in revenue and a shift from profit to loss compared to the same period last year.

Financial Performance

The company reported a net loss of Rs 47.65 crore for the quarter ended June 30, 2025, a stark contrast to the profit of Rs 23.53 crore recorded in the corresponding quarter of the previous year. This represents a significant downturn in the company's financial performance.

Revenue from operations saw a dramatic decline, plummeting to Rs 0.04 lakh from Rs 130.25 lakh in the same period last year, marking a decrease of over 99%. The total revenue for the quarter stood at Rs 5.20 lakh, compared to Rs 134.60 lakh in the previous year's corresponding quarter, indicating a 96% reduction.

Expense Management and Profitability

Despite the sharp decline in revenue, Nivaka Fashions' total expenses for the quarter were Rs 53.39 lakh, down from Rs 109.83 lakh in the prior year quarter. However, this reduction in expenses was not sufficient to offset the revenue decline, resulting in a loss before tax of Rs 48.19 lakh, compared to a profit before tax of Rs 24.77 lakh in the same quarter last year.

The company's earnings per share (EPS) turned negative at Rs 0.05 for the quarter, compared to a positive EPS of Rs 0.02 in the corresponding quarter of the previous year.

Balance Sheet Highlights

The paid-up equity share capital remained unchanged at Rs 1,026.90 lakh, with a face value of Re 1 per share.

Management Commentary

The company's board of directors, led by Managing Director Mr. Bhavin Jain, approved these unaudited financial results in a meeting held on August 14, 2025. The meeting, which commenced at 4:40 p.m. and concluded at 4:51 p.m., also included a review by the Audit Committee.

Auditor's Review

ADV & Associates, the company's statutory auditors, conducted a limited review of the financial results. Their report, signed by Partner Prakash Mandhaniya, stated that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards and other recognized accounting practices and policies.

Looking Ahead

The significant decline in revenue and the shift to a loss position present challenges for Nivaka Fashions Limited. Investors and stakeholders will likely be watching closely to see how the company plans to address these issues and return to profitability in the coming quarters.

Note: All figures are in Indian Rupees (INR) unless otherwise stated.