Outcome of Board meeting held on April 27, 2026
Awaiting price reaction for this filing.
AVI Polymers Ltd reported explosive growth for FY26 ended March 2026. Revenue surged to Rs 31,210.88 lakhs from just Rs 6.43 lakhs in FY25, a massive increase driven by a new business scale. Net profit jumped to Rs 2,032.91 lakhs from Rs 81.68 lakhs - approximately 25x growth. The company raised Rs 90 crore via rights issue of 8,99,95,400 shares at Rs 10 each. Auditors issued an unmodified (clean) opinion but included an Emphasis of Matter noting uncertainty over trade receivables (Rs 12,708.87 lakhs) and trade payables (Rs 5,175.10 lakhs) that could not be fully verified. Operating cash flow was deeply negative at Rs -6,257.72 lakhs due to large working capital build-up. The dividend is expected to be declared in the near future.
The results show extraordinary top-line and bottom-line growth following a capital infusion and likely business expansion. However, the negative operating cash flow, unauditable receivables/payables, and massive scale-up from a tiny base warrant caution. Shareholders should monitor for quality of earnings given the Emphasis of Matter from auditors.