Ritesh International Limited has issued a clarification to BSE Limited regarding the intended use of proceeds from its proposed preferential issue. The company submitted this clarification on 21.01.2026, providing specific details about fund allocation following regulatory requirements.

Fund Utilization Details

The company has confirmed that the entire proceeds from the proposed preferential issue will be directed towards a single specific purpose. According to the official communication, all funds raised will be utilized for reducing the working capital limits currently being availed by the company.

Corporate Governance and Authorization

The clarification follows proper corporate governance procedures, with the fund utilization being backed by formal board approval. The resolution for this preferential issue was duly passed during the company's Extraordinary General Meeting held on 30.10.2025.

The official communication was signed by Rijul Arora, Wholetime Director of the company, bearing DIN 07477956. The document was digitally signed and submitted to BSE Limited at Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai.

Working Capital Management Strategy

By allocating the entire preferential issue proceeds towards reducing working capital limits, the company appears to be focusing on optimizing its debt structure and improving financial efficiency. This strategic move indicates the company's commitment to strengthening its balance sheet through debt reduction rather than expansion activities.

The clarification provides transparency to investors and stakeholders regarding the specific purpose of the proposed fund raising, ensuring compliance with regulatory disclosure requirements.

Ritesh International Limited , a key player in the non-edible oils segment, has reported a significant upturn in its financial performance for the second quarter of fiscal year 2026. The company's unaudited financial results, approved by the Board of Directors on November 10, 2025, reveal a substantial increase in profitability and robust revenue growth.

Financial Highlights

Quarterly Performance

Ritesh International has demonstrated a remarkable improvement in its quarterly performance. The company's net profit for Q2 FY2026 stood at ₹106.07 lakhs, marking a substantial 182% increase from the previous quarter's ₹37.55 lakhs. This growth is even more pronounced when compared to the same quarter of the previous fiscal year, showing a 340% year-on-year increase from ₹24.11 lakhs in Q2 FY2025.

Revenue Growth

The company's revenue from operations also showed strong growth, reaching ₹3,874.15 lakhs in Q2 FY2026. This represents a 10.5% increase from the previous quarter and a 49.5% rise compared to the same period last year.

Half-Yearly Performance

For the first half of FY2026, Ritesh International reported a total revenue from operations of ₹7,378.88 lakhs. The company's net profit for this six-month period reached ₹143.62 lakhs, indicating a solid start to the fiscal year.

Operational Efficiency

The significant increase in profitability, outpacing revenue growth, suggests improved operational efficiency and cost management. The company's ability to expand its profit margins in a challenging economic environment is noteworthy.

Balance Sheet Strength

As of September 30, 2025, Ritesh International reported total assets of ₹4,157.71 lakhs, up from ₹3,806.01 lakhs at the end of the previous fiscal year. The company's equity position also strengthened, with total equity increasing to ₹2,402.77 lakhs from ₹2,261.65 lakhs.

Cash Flow Position

The company's cash and cash equivalents improved to ₹28.05 lakhs as of September 30, 2025, compared to ₹22.37 lakhs at the beginning of the fiscal year, indicating a positive cash flow generation during the period.

Auditor's Review

M/s Ashok Shashi & Co., the statutory auditors, conducted a limited review of the financial results and provided an unqualified review report, lending credibility to the reported figures.

Ritesh International's impressive Q2 results demonstrate the company's resilience and growth potential in the non-edible oils market. The company's performance in the coming quarters will be closely watched to see if this growth trajectory can be maintained.