ALFA Finder
| Market Cap | ₹259.8 CrSmall Cap |
|---|---|
| P/E Ratio | 0.82Sector 48.16 |
| Promoter Holding | 40.63%64.92% Pledged |
| 1-Year Return | -32.67%Price Performance |
Key highlights
- Amicable settlement reached with operational creditor Bhagwati Cotton Company
- Resolves the IBC Section 9 petition filed against the company on October 29, 2026
- Total claim involved in the legal proceedings was valued at ₹40.70 crore
- Resolution follows a quarter where the company reported a net profit of ₹311.19 crore
- Agreement aims to formalize the withdrawal of proceedings before NCLT Chandigarh
Resolution of the ₹40.70 Crore NCLT Insolvency Case
Vardhman Polytex Limited has informed the stock exchanges that it has reached an amicable settlement with Bhagwati Cotton Company, an operational creditor. This development follows an application filed on October 29, 2026, under Section 9 of the Insolvency and Bankruptcy Code, 2016, at the Chandigarh Bench of the National Company Law Tribunal. The dispute involved outstanding dues reported at ₹40.70 crore.
By resolving this matter through mutual understanding, the company avoids the potential risks associated with prolonged insolvency proceedings. The management has confirmed that necessary steps are being taken to formalize the settlement and keep stakeholders updated on further legal developments.
Financial Performance Context and Quarterly Milestones
- Operating revenue for the quarter ended June 30, 2026, was recorded at ₹60.75 crore
- The company reported a substantial quarterly net profit of ₹311.19 crore in the same period
- Net profit growth for the quarter reached a massive 159,894 percent on a year-on-year basis
- Operating profit margins stood at -2.14 percent for the June 2026 quarter
- Current stock price of ₹5.11 represents a 10.13 percent gain over the past week
- The textile firm is currently trading at a P/E ratio of 0.82 compared to the industry average of 32.09
Strategic Capital Adjustments and Debt Management
The Oswal Group company has navigated multiple financial restructuring events during 2026. In April and May, Vardhman Polytex successfully raised capital through the allotment of ₹75.00 crore in secured rated listed non-convertible debentures and ₹15.00 crore in optionally convertible debentures. These fundraises and the latest debt settlement occur against a backdrop of a 32.67 percent decline in the stock price over the last year.
Despite the market volatility, the company remains focused on cleaning its balance sheet, as evidenced by this resolution and earlier compliance with NCLT orders regarding logistics-related dues of ₹10.19 crore paid to international transportation providers.
Official Disclosure on Settlement Dues
we wish to inform you that an amicable settlement has been arrived at between the Company and M/s. Bhagwati Cotton Company in relation to the outstanding dues forming the subject matter of the aforesaid proceedings.
| Date | Announcement | Amount |
|---|---|---|
| 29 Oct 2026 | Receipt of IBC Section 9 insolvency petition filed by operational creditor Bhagwati Cotton Company before NCLT ChandigarhSource: economictimes.indiatimes.com | ₹40.70 Cr |
| 21 Aug 2026 | Receipt of NCLT order directing payment in execution proceedings to Maschinen Umwelttechnik Transportanlagen Gesellschaft GmbHSource: scanx.trade | ₹10.19 Cr |
| 18 May 2026 | Allotment of Optionally Convertible Debentures (OCDs) on private placement basisSource: indiainfoline.com | ₹15.00 Cr |
| 06 Apr 2026 | Allotment of Secured Rated Listed Redeemable Non-Convertible Debentures (NCDs)Source: scanx.trade | ₹75.00 Cr |
What to watch next
- Board of Directors meeting on November 12, 2026, to approve results for the quarter ended September 30, 2026
- Formal withdrawal of the Section 9 insolvency petition from the NCLT Chandigarh Bench
- Monitoring of promoter pledge levels which currently stand at 64.92 percent of the 40.63 percent holding
“The Company shall take necessary steps in accordance with the mutual understanding and proceed. The Company will keep the Stock Exchanges apprised of further material developments in the matter, as and when they arise.”
| Share price | ₹5.11 |
|---|---|
| Market capitalisation | ₹259.80 Cr |
| Revenue (annual) | ₹236.70 Cr |
| Net profit (annual) | ₹7.68 Cr |
| Revenue (latest quarter) | ₹60.75 Cr-6.32% vs previous quarter |
| Net profit (latest quarter) | ₹311.19 Cr+35158.33% vs previous quarter |
| P/E (TTM) | 0.82×Sector 48.16× |
| Promoter holding | 40.63%+3.13% QoQ |
| FII holding | 5.34%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Vardhman Polytex Limited announcing an amicable settlement with an operational creditor to resolve insolvency proceedings. Market figures from a third-party data provider.
