Patspin India Ltd has disclosed significant defaults on loan repayments to multiple banks, totaling ₹19.48 crores as of December 31, 2025. The textile company submitted this disclosure to BSE Limited on January 5, 2026, in compliance with SEBI listing regulations and circular SEBI/HO/CFD/CMDL/CIR/P/2019/140 dated November 21, 2019.

Default Details and Financial Position

The company's defaults are spread across three major banking institutions, with the total amount comprising both principal and interest components:

Bank-wise Breakdown of Defaults

The defaults are distributed across three lenders, with Central Bank of India bearing the highest exposure:

Financial Indebtedness Overview

The company's complete financial indebtedness picture reveals its dependence on bank financing. The total financial indebtedness, including both short-term and long-term debt, amounts to ₹56.67 crores, which matches exactly with the outstanding borrowings from banks and financial institutions. This indicates that the company has no unlisted debt securities such as Non-Convertible Debentures (NCDs) or Non-Convertible Redeemable Preference Shares (NCRPS).

Regulatory Compliance

The disclosure was made by T. Ravindran, Chief Financial Officer of Patspin India Ltd, as part of mandatory reporting requirements under SEBI listing regulations. The company is required to disclose defaults on payment of interest or repayment of principal amount on loans from banks and financial institutions to maintain transparency with investors and regulatory authorities.

Patspin India Limited, incorporated in 1991 with CIN L18101KL1991PLC006194, operates in the textile sector and maintains its corporate office in Kochi, Kerala. The company holds ISO 9001:2005 and 14001:2005 certifications and is part of the GTN Group.

Patspin India Limited , a player in the textile industry, has reported a significant increase in net loss for the quarter ended September 30, as the company grapples with financial challenges and seeks debt restructuring to improve its financial health.

Financial Performance

The company's financial results for the quarter paint a concerning picture:

Patspin India reported a net loss of Rs 3.03 crore for the quarter, compared to Rs 2.17 crore loss in the same quarter last year, marking a 39.63% increase in losses year-over-year. The loss also widened by 28.39% compared to the previous quarter's loss of Rs 2.36 crore.

Despite the increase in losses, the company's revenue from operations showed improvement, rising to Rs 13.75 crore from Rs 11.19 crore in the previous quarter, representing a 22.88% increase. Year-over-year, revenue grew by 18.84% from Rs 11.57 crore in the same quarter of the previous year.

Half-Year Performance

For the half-year period ended September 30, Patspin India posted a cumulative net loss of Rs 5.39 crore with revenues of Rs 5.27 crore. The company's financial situation remains challenging, with its net worth eroded and accounts with lenders classified as sub-standard due to irregular debt servicing.

Debt Restructuring Efforts

In response to its financial difficulties, Patspin India has submitted a new resolution plan to lenders for debt restructuring. The plan includes:

1. Moratorium on interest and installment payments
2. Reduction in interest rates
3. Fresh working capital facility

The company reports that banks have conducted a Technical Economic Viability (TEV) study, which has confirmed the viability of the restructuring proposal. The proposal is currently under consideration by the lenders.

Future Outlook

Patspin India plans to resume its own manufacturing of cotton yarn, aiming to improve EBITDA levels and enhance its debt servicing capabilities. The company cites improved demand situations and various government initiatives to support the Indian Textiles Industry as factors that may contribute to its recovery.

However, the company's ability to continue as a going concern remains uncertain, given its eroded net worth and classification of accounts as sub-standard. The success of the debt restructuring plan and the company's ability to improve its operational performance will be crucial for its future viability.

Conclusion

While Patspin India faces significant financial challenges, its efforts to restructure debt and plans to resume manufacturing operations provide a glimmer of hope. Investors and stakeholders will be closely watching the outcome of the debt restructuring proposal and the company's ability to turn around its performance in the coming quarters.

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