The Board of Directors in their meeting held on today approved unaudited financial results for quarter and half year ended 30th September 2025
Awaiting price reaction for this filing.
Rainbow Denim's board approved unaudited results for Q2 FY26 showing revenue from operations of Rs. 6,892.37 lakhs (vs Rs. 6,806.63 lakhs in Q1 FY26) and net profit of Rs. 516.91 lakhs (down from Rs. 657.36 lakhs in Q1). For the half year, revenue stood at Rs. 13,699 lakhs with net profit of Rs. 1,174.27 lakhs and EPS of Rs. 8.84. Total assets rose sharply to Rs. 24,527 lakhs, largely driven by a jump in trade receivables from Rs. 3,652 lakhs to Rs. 8,769 lakhs. Importantly, the filing reveals the company is operating under a Liquidator appointed under the Insolvency and Bankruptcy Code, with new management noting data limitations from the prior resolution process. Operating cash flow turned sharply negative at Rs. -964.60 lakhs for the half year, while total borrowings climbed to over Rs. 13,838 lakhs against equity of Rs. 4,935 lakhs.
Despite headline profitability, the company's insolvency status, negative operating cash flow, surge in receivables, and very high debt-to-equity ratio (~2.8x) raise serious concerns about financial health and sustainability. Shareholders should treat the reported profits with caution given the going concern backdrop and the auditor's context about data limitations from the liquidation process.