Vardhman Polytex Ltd

Litigation update

• NCLT Chandigarh has allowed execution against the company and directed payment.
• Rs 10.19 crore payable, with FMH share value fixed at Rs 5.40 per share.
• Interest at 15% per annum applies to the amount.
• Payment must be made within 30 days from pronouncement dated 20 August 2026.
• Company intends to file an appeal and seek interim relief/stay.
• Proceedings relate to exit of minority shareholder MUT from FMH.
• FMH is a former subsidiary of Vardhman Polytex.
• Case numbers CA 271/2022 and CA 118/2025 in CP No. 50/2010.

Financial highlights

• Quarter ended 30 Jun 2026 profit rose to ₹1.63 Cr, up 757% YoY from ₹0.19 Cr.
• QoQ profit grew ~85% to ₹1.63 Cr from ₹0.88 Cr in Mar 2026.
• Exceptional gain from Phoenix ARC debt settlement: ₹309.55 Cr recognized in quarterly results.

Debt settlement & capital actions

• NCDs aggregating ₹75 Cr issued on 6 Apr 2026; OCDs ₹15 Cr issued on 18 May 2026.
• Proceeds enabled full and final repayment of Phoenix ARC debt.

Asset monetisation

• Asset monetisation under way for approximately 26 acres 6 kanals 9 marlas at Ludhiana unit.

Leadership & governance

• Leadership noted the milestone in profitability and debt settlement.

Financial highlights

• Profit for June 2026 rose 757% YoY to Rs 1.63 crore.
• QoQ profit rose about 85% to Rs 1.63 crore in June 2026.
• Exceptional gain of Rs 309.55 crore from Phoenix ARC debt settlement recognized.
• NCDs aggregating Rs 75 crore issued on Apr 6, 2026.
• OCDs aggregating Rs 15 crore issued on May 18, 2026.
• Full and final settlement of Phoenix ARC debt achieved.
• Asset monetisation: 26 acres, 6 kanals 9 marlas at Ludhiana Focal Point.
• Operational focus on financial consolidation and long-term growth.
• Leadership commentary on profitability improvement and debt settlement.

Deviation and fund utilisation status

• Mode of fund raising: Preferential issue—conversion of warrants and optional convertible debentures.
• Date of raising funds: Warrants on 23–26 Mar 2026; OCDs on 06 Apr 2026.
• Warrants raised: Rs. 22,70,76,563.
• Optionally convertible debentures raised: Rs. 15,00,00,000.
• Deviation in use of funds raised: No.
• Audit Committee comments: No comments due to no deviation.
• Auditors' comments: No comments.
• Monitoring agency: Not Applicable.
• Objects/variation table: Not Applicable.
• Status of fund utilisation: No deviation reported.

Board results

• Board approves standalone unaudited results for quarter ended 30 June 2026.

Debt fund-raising and usage

• Rs 75 crore NCDs raised on 6 April 2026; funds fully utilized; no deviation.

Security cover

• Security cover as of 30 June 2026 at 7.84x, above 4x minimum.

AGM and corporate actions

• 46th AGM scheduled 24 September 2026 at 11:00 AM in Ludhiana.

Shareholding / AGM logistics

• Register of Members closed 22–24 September 2026; voting cut-off 17 September 2026.

Auditor review

• Independent auditor’s review: no material misstatement; compliant with SEBI Regulations.

Funds utilisation deviation

• Deviation in use of funds from issue proceeds: No deviation.

Directors’ report & governance

• Directors’ Report and corporate governance to be published in the annual report.

Audit certification

• Statement of security cover and covenants compliance certified by auditors.

Dematerialisation status

• Securities dematerialised have been listed on the stock exchanges.
• Physical certificates for dematerialisation were mutilated and cancelled after verification.
• Depository's name substituted as registered owner within prescribed timelines.

Disclosures on loan default

• No default in interest or principal repayments on bank loans as of 30 June 2026.
• Discontinuing quarterly disclosures on defaults for bank loans and unlisted debt securities.

Trading Window Closure

• Trading window closed for all Designated Persons from 01 July 2026 until 48 hours after Q1 2026 results.
• Board meeting date for Q1 2026 results will be intimated in due course.