VARDMNPOLYBSEVardhman Polytex LtdHighNeutral
Announced Fri, 29 May · 15:29 IST

Disclosure regarding re-appointment of cost auditors of the company for FY 2026-27 is attached.

Going ConcernRevenue DeclinePat NegativeDebt Equity ThresholdNegative Operating CashflowResults View source PDF

VARDMNPOLY · price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve 14 horizons · vs prior close
+7.1%1-day move
₹6.50
prior close
₹6.75
base price
After-mkt
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5m10m15m30m1D2D3D4D5D7D15D1M2M3M
-3.3-3.0-3.7-2.5+7.1+7.7+11.5+6.9+5.4+8.3+8.8+6.2
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AI summary

Vardhman Polytex reported FY2026 Total Income of Rs 24,587.59 lakh vs Rs 31,106.75 lakh in FY2025 — a revenue decline of ~21%. Net Profit after Tax fell to Rs 768.13 lakh from Rs 1,492.40 lakh, with Basic EPS dropping to Rs 0.17 from Rs 0.45. The company's Net Worth remains deeply negative at Rs -19,718.10 lakh, indicating complete erosion of equity. Management explicitly prepared the financial statements on a Going Concern basis despite this. The company raised Rs 75 crore via NCDs (April 2026) and Rs 15 crore via OCDs (May 2026), fully repaying Phoenix ARC debt. Equity share capital increased to Rs 4,830.19 lakh after issuing 2.41 crore shares upon warrant conversion. Statutory auditors M/s Navneet Sehgal & Co. issued an Unmodified Opinion. Cost auditors M/s Ramanath Iyer & Co. were re-appointed for FY 2026-27.

Likely market impact

The company is technically insolvent with negative net worth and negative debt-equity ratio (-0.28), yet continues operating. The Unmodified Audit Opinion is a positive signal, but the negative equity, declining revenues, and negative operating cash flow (-Rs 3,033.41 lakh) signal high financial distress. Investors should monitor the land monetization plans (Bathinda and Ludhiana asset sales) as key to potential recovery.