Outcome of the Board Meeting
Price
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Awaiting price reaction for this filing.
Tuni Textile Mills reported strong Q2 FY26 results with revenue from operations rising to Rs. 2,984.69 lakhs from Rs. 2,296.94 lakhs in Q2 FY25 (about 30% growth). Net profit jumped to Rs. 57.21 lakhs from Rs. 11.70 lakhs (nearly 5x), and EPS stood at Rs. 0.04 versus Rs. 0.01. For H1 FY26, revenue grew to Rs. 5,261.64 lakhs (up 33%) and net profit rose to Rs. 77.66 lakhs. The Board also approved a Rights Issue of 42.32 crore equity shares at Re. 1 per share (at par) in a ratio of 81 shares for every 25 held, aimed at raising up to Rs. 42.32 crore. The record date is November 15, 2025, and the issue opens on November 24, 2025. The auditor's limited review flagged that no provision was made for old and non-moving stock worth Rs. 3,669.74 lakhs, and several loan and deposit balances remain unconfirmed.
Strong top-line and bottom-line growth signals improving business performance, but the massive Rights Issue at par price will more than triple the share count (from 13.06 crore to 55.39 crore shares), leading to significant dilution for shareholders who do not subscribe. Existing shareholders should evaluate exercising their rights entitlement to avoid dilution. Deeply negative operating cash flow of Rs. 980 lakhs in H1 is a concern despite the profit growth.