Padam Cotton Yarns Ltd (531395)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Padam Cotton's revenue was ₹13.1 Cr (-4.2% year on year, -46.2% on the previous quarter), and net profit ₹1.0 Cr (-49.7% year on year); the operating margin was 5.8%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹13.1 | -4.2% | -46.2% |
| Operating profit | ₹0.8 | -65.8% | -86.4% |
| Net profit | ₹1.0 | -49.7% | -76.4% |
| EPS (₹) | 0.05 | -44.4% | -75.0% |
| Operating margin | 5.8% | — | — |
📢 Recent Corporate Announcements
Padam Cotton Yarns' Board of Directors has approved a Rights Issue of equity shares of face value Re 1 each, up to an aggregate amount of ₹27 crore. This is a massive fundraise relative to the company's current market cap of approximately ₹21 crore (around 128% of market cap). The Board also approved the Draft Letter of Offer (DLoF) and noted the appointment of Ms. Anshu Kalra as Company Secretary and Compliance Officer effective October 06, 2026. Rights terms, including issue price, entitlement ratio, and record date, will be decided and disclosed later.
- Approved Rights Issue of equity shares of face value Re 1 each up to ₹27,00,00,000 (₹27 crore)
- Proposed issue size of ₹27 crore represents ~128% of current market capitalisation (₹21 crore)
- Board approved the Draft Letter of Offer (DLoF) for submission for in-principle exchange approval
- Appointed Ms. Anshu Kalra as Company Secretary & Compliance Officer effective October 06, 2026
Padam Cotton Yarns' Board of Directors has approved a Rights Issue of equity shares of face value Re 1 each, up to an aggregate amount of ₹27 crore. This is a massive fundraise relative to the company's current market cap of approximately ₹21 crore (around 128% of market cap). The Board also approved the Draft Letter of Offer (DLoF) and noted the appointment of Ms. Anshu Kalra as Company Secretary and Compliance Officer effective October 06, 2026. Rights terms, including issue price, entitlement ratio, and record date, will be decided and disclosed later.
- Approved Rights Issue of equity shares of face value Re 1 each up to ₹27,00,00,000 (₹27 crore)
- Proposed issue size of ₹27 crore represents ~128% of current market capitalisation (₹21 crore)
- Board approved the Draft Letter of Offer (DLoF) for submission for in-principle exchange approval
- Appointed Ms. Anshu Kalra as Company Secretary & Compliance Officer effective October 06, 2026
Padam Cotton Yarns Ltd has scheduled a Board of Directors meeting on October 09, 2026. The board will consider and approve the Draft Letter of Offer (DLoF) for a proposed rights issue of equity shares, along with appointing key intermediaries. The company currently holds a market cap of approximately ₹21 Cr with zero promoter holding. The exact size, entitlement ratio, and price for the rights issue remain to be determined.
- Board meeting scheduled for Friday, October 09, 2026
- Agenda includes approval of the Draft Letter of Offer (DLoF) for a Rights Issue
- Meeting will also address the appointment of various intermediaries for the issue
- Issuance size and pricing details not yet disclosed in the intimation
Padam Cotton Yarns Ltd announced the reconstitution of three key board committees effective August 14, 2026, following a board meeting held on the same day. Mrs. Kinjal Shah has been designated as Chairperson of both the Audit Committee and the Nomination and Remuneration Committee. Mr. Ashutosh Alaru has been appointed Chairperson of the Stakeholders Relationship Committee. This administrative update ensures regulatory compliance under SEBI LODR regulations and entails no immediate financial impact on the company.
- Reconstitution of 3 board committees approved effective August 14, 2026
- Mrs. Kinjal Shah appointed Chairperson of Audit and Nomination & Remuneration Committees
- Mr. Ashutosh Alaru appointed Chairperson of the Stakeholders Relationship Committee
- Board meeting conducted in a 30-minute window between 06:00 P.M. and 06:30 P.M. IST on August 14, 2026
Padam Cotton Yarns announced that its Board of Directors has granted in-principle approval to raise funds via a Rights Issue of fully-paid equity shares, with issue size and pricing to be finalized in a subsequent meeting. The company also accepted the resignation of Independent Director Anand Manoharlal Kothari, effective August 14, 2026, citing other professional commitments. Concurrently, Dharmesh Mithabhai Patel was appointed as an Additional Independent Director for a 5-year term, prompting reconstitution across the Audit, Nomination & Remuneration, and Stakeholders Relationship committees.
- Board approved fundraising via Rights Issue; issue size and terms to be decided in a separate meeting.
- Appointment of Mr. Dharmesh Mithabhai Patel as Non-Executive Independent Director for 5 years effective August 14, 2026.
- Resignation of Independent Director Mr. Anand Manoharlal Kothari accepted effective closing hours of August 14, 2026.
- Audit, NRC, and Stakeholders Relationship Committees reconstituted effective August 14, 2026.
Padam Cotton Yarns announced that its Board of Directors approved raising funds via a proposed Rights Issue, with issue size and terms to be decided at a later meeting. The Board also approved the appointment of Mr. Dharmesh Mithabhai Patel as an Additional Non-Executive Independent Director for a 5-year term starting August 14, 2026. Simultaneously, Mr. Anand Manoharlal Kothari resigned as Independent Director effective August 14, 2026, citing other professional commitments. Following these changes, the company reconstituted its Audit, Nomination & Remuneration, and Stakeholders Relationship Committees.
- Appointed Mr. Dharmesh Mithabhai Patel as Independent Director for a term of 5 years w.e.f. August 14, 2026
- Accepted resignation of Independent Director Mr. Anand Manoharlal Kothari w.e.f. August 14, 2026
- In-principle approval granted for fundraising through a Rights Issue of fully-paid equity shares
- Reconstituted 3 Board committees: Audit, NRC, and Stakeholders Relationship w.e.f. August 14, 2026
Padam Cotton Yarns Ltd has approved a proposal to raise funds via a Rights Issue of fully-paid equity shares, with the issue size, price, and terms to be determined at a separate upcoming Board meeting. The Board also approved the unaudited standalone financial results for the quarter ended June 30, 2026, accompanied by an unmodified Limited Review Report. Additionally, Mr. Dharmesh Mithabhai Patel was appointed as an Independent Director for a 5-year term following the resignation of Mr. Anand Manoharlal Kothari effective August 14, 2026.
- Board approved fundraising via a Rights Issue of fully-paid equity shares, subject to final terms and Draft Letter of Offer approval.
- Approved unaudited standalone financial results for Q1 ended June 30, 2026 with an unmodified review report from Piyush Kothari & Associates.
- Appointed Mr. Dharmesh Mithabhai Patel as Additional Non-Executive Independent Director for 5 years effective August 14, 2026.
- Accepted the resignation of Independent Director Mr. Anand Manoharlal Kothari effective August 14, 2026.
- Reconstituted the Audit, Nomination & Remuneration, and Stakeholders Relationship Committees effective August 14, 2026.
The Board of Directors of Padam Cotton Yarns approved the unaudited standalone financial results for the quarter ended June 30, 2026. The Board also granted in-principle approval to raise funds via a Rights Issue of fully-paid equity shares, with the issue size, price, and terms to be determined in an upcoming board meeting. Additionally, Mr. Dharmesh Mithabhai Patel was appointed as a Non-Executive Independent Director for a 5-year term following the resignation of Mr. Anand Manoharlal Kothari.
- Approved fundraise through issuance of fully-paid equity shares on a Rights Issue basis
- Appointed Mr. Dharmesh Mithabhai Patel as Non-Executive Independent Director for a 5-year term w.e.f. August 14, 2026
- Accepted resignation of Independent Director Mr. Anand Manoharlal Kothari w.e.f. August 14, 2026
- Reconstituted the Audit, Nomination & Remuneration, and Stakeholders Relationship Committees
Padam Cotton Yarns has scheduled a board meeting for August 14, 2026, to approve its Q1 FY27 financial results and evaluate a potential fundraise. The company is considering various modes including equity shares, warrants, or rights issues. This is significant given the company's micro-cap status (Rs 21 Cr) and the fact that promoter holding currently stands at 0.0%. While TTM revenue grew to Rs 73 Cr in FY26 from Rs 14 Cr in FY25, the stock has seen a sharp 88.3% decline over the last 12 months.
- Board meeting scheduled for August 14, 2026, to approve Q1 FY27 results.
- Evaluation of fund raising through equity, warrants, or rights issue to be discussed.
- Company reported a significant revenue jump to Rs 73 Cr in FY26 from Rs 14 Cr in FY25.
- Promoter holding remains at 0.0% as of March 2026.
- Trading window is closed from July 1, 2026, until 48 hours after the results are declared.
Padam Cotton Yarns Ltd has accepted the resignation of its statutory auditor, M/s. SVJK & Associates, effective July 27, 2026. The outgoing auditor cited a disagreement over audit fees, stating the current compensation was not commensurate with the company's growing scale (TTM revenue of ₹73 cr). To fill the casual vacancy, the board has appointed M/s. Piyush Kothari & Associates for the remainder of FY 2026-27, subject to shareholder approval.
- Resignation of M/s. SVJK & Associates effective July 27, 2026, due to fee-related disagreements.
- Appointment of M/s. Piyush Kothari & Associates as the new statutory auditor for FY 2026-27.
- Outgoing auditor confirmed completion of the FY26 audit on May 30, 2026, with no other material reasons for leaving.
- Company reports TTM revenue of ₹73 cr and a high ROCE of 47.0%, despite a 0.0% promoter holding.
- The new auditor, M/s. Piyush Kothari & Associates, is a peer-reviewed firm established in 2015.
Padam Cotton Yarns Ltd has accepted the resignation of its statutory auditor, M/s. SVJK & Associates, effective July 27, 2026. The auditor cited a failure to reach a mutual agreement on audit fees, stating the current compensation was insufficient for the time and effort required by the company's growing scale (TTM revenue of Rs 73 Cr). M/s. Piyush Kothari & Associates has been appointed to fill the casual vacancy for the remainder of FY 2026-27, subject to shareholder approval. This governance change is notable as the company currently has 0.0% promoter holding and has seen an 86.4% share price decline over the last 12 months.
- Statutory Auditor M/s. SVJK & Associates resigned effective July 27, 2026, due to fee disagreements.
- The outgoing auditor had completed the FY26 audit on May 30, 2026, before resigning.
- M/s. Piyush Kothari & Associates appointed as the new auditor for FY 2026-27.
- Company reports TTM revenue of Rs 73 Cr and a high ROCE of 47.0% despite a 0.0% promoter holding.
- The board meeting for these changes concluded within 20 minutes (06:30 P.M. to 06:50 P.M.).
Padam Cotton Yarns Ltd has announced the resignation of its statutory auditor, M/s. SVJK & Associates, effective July 27, 2026. The auditor cited a failure to reach a mutual agreement on audit fees, stating that current compensation does not reflect the company's growing scale and increasing business complexity. To fill this casual vacancy, the board has appointed M/s. Piyush Kothari & Associates for the 2026-27 financial year, subject to shareholder approval. This transition follows a period where the company reported TTM revenue of Rs 73 Cr and a high ROCE of 47%, despite a 0% promoter holding.
- Statutory auditor M/s. SVJK & Associates resigned effective July 27, 2026, due to fee disagreements.
- Outgoing auditor noted that the company's growing scale (TTM revenue of Rs 73 Cr) requires more professional resources.
- M/s. Piyush Kothari & Associates appointed as new auditors for FY 2026-27.
- The previous auditor had already completed the FY 2025-26 audit as of May 30, 2026.
- Company maintains 0% promoter holding with a market capitalization of Rs 21 Cr.
Padam Cotton Yarns has received formal approval from BSE Limited for the reclassification of 8 members from the 'Promoter' category to 'Public' under Regulation 31A of SEBI (LODR). The entities involved, including Padam Sain Gupta and Vivek Gupta, collectively hold 0 shares (0% stake) in the company. This is a procedural cleanup of the shareholding structure. The company's stock has experienced significant distress, with a 12-month price return of -84.5%.
- Approval received from BSE Limited via letter dated July 16, 2026
- Total of 8 promoter group members reclassified to the public category
- Aggregate shareholding of the reclassified members is 0 shares (0%)
- Stock price has declined by 70.7% over the last 6 months
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