Vaswani Industries Limited has announced a significant corporate development involving the restructuring of its associate company. The Board of Directors approved the conversion of C.G. Ispat Private Limited into a Limited Liability Partnership structure during their meeting on March 11, 2026.

Board Approval and Corporate Restructuring

The company's board meeting resulted in several key approvals related to the conversion process. The directors granted consent for transforming C.G. Ispat Private Limited into "C.G. Ispat LLP" under the Limited Liability Partnership Act, 2008. This restructuring represents a strategic shift in the organizational structure of the associate entity.

Stake Retention and Capital Structure

Vaswani Industries will maintain its investment position in the restructured entity. The company approved continuing its equivalent capital contribution in C.G. Ispat LLP, corresponding to its existing 8.23% shareholding in the private limited company. This arrangement ensures continuity of the investment relationship despite the change in corporate structure.

Leadership and Partnership Arrangement

The board designated Mr. Yashwant Vaswani, Whole-time Director of Vaswani Industries, to represent the company's interests in the new partnership structure. He will serve as the nominated partner in C.G. Ispat LLP on behalf of Vaswani Industries upon completion of the conversion process.

Regulatory Compliance

The announcement was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure follows the requirements under Part A of Schedule III of the listing regulations, ensuring transparency with stakeholders regarding material corporate developments.

Company Background

Vaswani Industries Limited operates in the power, sponge iron, and steel sectors. The company is headquartered at Bahesar Road, Near Cycle Park, Village Sondra, Siltara Phase-II, Raipur, Chhattisgarh. This corporate restructuring decision reflects the company's ongoing strategic management of its investment portfolio and associate relationships.

Vaswani Industries Limited's Board of Directors approved the unaudited standalone financial results for Q3FY26 at their meeting held on February 28, 2026. The company reported a significant net loss of ₹796.42 lakhs for the quarter ended December 31, 2025, marking a dramatic shift from the profit of ₹176.98 lakhs recorded in the corresponding quarter of the previous year.

Board Meeting and Regulatory Compliance

The Board meeting commenced at 4:30 p.m. and concluded at 6:30 p.m. on February 28, 2026. In compliance with Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company submitted its unaudited standalone financial results along with the Limited Review Report issued by statutory auditors to both BSE and NSE.

Financial Performance Overview

The company's Q3FY26 results present a mixed picture with revenue growth overshadowed by substantial losses:

Despite achieving revenue growth of 21.36%, the company faced significant cost pressures that resulted in the substantial loss. Total expenses increased by 27.00% to ₹12,716.45 lakhs compared to ₹10,013.38 lakhs in Q3FY25.

Expense Analysis and Cost Pressures

The company experienced significant increases across multiple expense categories:

The most notable increase was in finance costs, which more than doubled, and other expenses, which rose by 64.42%.

Segment-wise Performance Analysis

The company's two primary business segments showed contrasting performance:

The Power segment demonstrated strong performance with revenue more than doubling and segment results improving significantly. However, the Iron & Steel segment, despite revenue growth, reported a substantial segment loss.

Operational Developments and Tax Impact

During the quarter, the company capitalized a solar plant of 50.00 MW and induction furnaces, leading to higher depreciation charges under the Income Tax Act. This capitalization resulted in negative provision for taxation for the quarter due to increased depreciation benefits. The company's paid-up share capital stood at ₹3,294.62 lakhs, with earnings per share (both basic and diluted) at (₹2.48) compared to ₹0.58 in Q3FY25.

Nine-Month Performance

For the nine months ended December 31, 2025, the company reported revenue from operations of ₹32,348.47 lakhs compared to ₹29,623.36 lakhs in the corresponding period of the previous year. However, the company recorded a net loss of ₹115.04 lakhs for the nine-month period against a profit of ₹661.74 lakhs in the previous year, indicating sustained operational challenges throughout the period.