Harish Textile Engineers Ltd (542682)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Harish Textile's revenue was ₹39.4 Cr (+24.2% year on year, +8.5% on the previous quarter), and net profit ₹0.9 Cr (-22.8% year on year); the operating margin was 7.4%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹39.4 | +24.2% | +8.5% |
| Operating profit | ₹2.9 | +8.6% | -10.4% |
| Net profit | ₹0.9 | -22.8% | -51.6% |
| EPS (₹) | 2.68 | -23.0% | -51.7% |
| Operating margin | 7.4% | — | — |
📢 Recent Corporate Announcements
Harish Textile Engineers has revised its proposed preferential issue from ₹13.59 crore down to ₹6.79 crore following clarifications sought by BSE. The company eliminated all cash consideration allottees, reducing the share count from 21.24 lakh to 10.61 lakh shares at an issue price of ₹64 per share. Consequently, there will be no fresh cash inflow; the issue will operate entirely as a debt-for-equity swap to settle ₹3.55 crore of short-term borrowings and ₹3.24 crore of sundry creditors. This ₹6.79 crore swap represents approximately 32% of the company's current market capitalization of ₹21 crore.
- Preferential issue size halved from ₹13.59 crore (21,23,800 shares) to ₹6.79 crore (10,60,800 shares) at ₹64 per share
- Company removed all cash-paying allottees, resulting in zero new cash inflow
- Proceeds solely directed to extinguish liabilities: ₹3,54,94,400 in short-term debt and ₹3,23,96,800 in sundry creditors
- Revision undertaken following regulatory clarifications sought by BSE Limited for in-principle approval
Harish Textile Engineers Limited has complied with an Order-in-Original issued by the Assistant Commissioner of Customs (Export), Air Cargo Complex, Mumbai. The company paid the demanded sum of Rs 21,981 on September 24, 2026. With this payment completed, the regulatory matter stands fully settled and closed. The financial outflow is negligible compared to the company's TTM revenue of Rs 146 Cr.
- Received Order-in-Original from the Assistant Commissioner of Customs (Export), Air Cargo Complex, Mumbai
- Company made the required payment of Rs. 21,981 on 24th September, 2026
- Matter officially stands complied with and closed with no further liability mentioned
Harish Textile Engineers has notified the exchange that its Board of Directors will meet on Friday, September 4, 2026. The meeting will finalize the date, notice, and book closure dates for the upcoming 16th Annual General Meeting (AGM) for FY 2025-2026. The board will also consider approving Material Related Party Transactions for FY 2026-2027, an increase in CFO remuneration, and the appointment of Independent Directors.
- Board meeting scheduled for September 4, 2026 at the Mumbai registered office.
- Agenda includes finalizing the date, venue, and notice for the 16th AGM for FY 2025-2026.
- Board to consider and approve Material Related Party Transactions for FY 2026-2027.
- Also reviewing appointment of Independent Directors and remuneration revision for the CFO.
Harish Textile Engineers reported the outcome of a meeting of debenture holders regarding delay and default in redemption of its 7% Secured, Unlisted, Unrated NCDs (Old Series III & Series IV). Debenture holders have agreed in principle to extend the redemption date until January 31, 2027, subject to mutually agreed terms. The company carries total debt of Rs 30 Cr against a net worth of Rs 14 Cr (D/E ratio of 2.14). Final documentation and procedural formalities for the extension are currently underway.
- Debenture holders agreed in principle to extend the NCD redemption date to 31st January, 2027
- Pertains to 7% Secured, Unlisted, Unrated and Redeemable NCDs (Old Series III & Series IV)
- Follows prior communications regarding delay/default in redemption and payment of interest
- Meeting was convened by Axis Trustee Services Limited on 25th August, 2026
Harish Textile Engineers has informed the exchange that the pre-institution mediation proceedings with Vashi Integrated Solutions Limited have been rescheduled. Pursuant to a request by the company, the District Legal Services Authority (DLSA), CBD Belapur, has set the next mediation date for September 3, 2026, at 12:00 PM. The proceedings are taking place under Section 12A of the Commercial Courts Act, 2015 (Pre-Institution Mediation No. 52 of 2026). The company stated there is currently no quantifiable financial impact.
- Pre-Institution Mediation No. 52 of 2026 rescheduled to 03 September, 2026 at 12:00 PM
- Proceedings initiated by Vashi Integrated Solutions Limited before DLSA, CBD Belapur under Section 12A of Commercial Courts Act, 2015
- Follows earlier company intimations dated 22 July, 2026 and 06 August, 2026
- Company reports no quantifiable financial impact at this stage
Harish Textile Engineers Ltd has announced an update regarding Pre-Institution Mediation No. 52 of 2026 initiated by Vashi Integrated Solutions Limited under Section 12A of the Commercial Courts Act, 2015. On the company's request, the District Legal Services Authority in CBD Belapur has rescheduled the mediation hearing from earlier dates to September 3, 2026, at 12:00 PM. The company stated there is currently no quantifiable financial impact from this procedural update. The company's TTM revenue stands at Rs 146 Cr with net worth of Rs 14 Cr.
- Pre-Institution Mediation No. 52 of 2026 rescheduled to 03 September, 2026 at 12:00 PM
- Proceedings held before District Legal Services Authority, Mediation Centre, CBD Belapur
- Mediation initiated by Vashi Integrated Solutions Limited under Section 12A of Commercial Courts Act, 2015
- Management states no quantifiable financial impact at this preliminary stage
Harish Textile Engineers reported Q1 FY27 net sales of Rs 39.44 Cr, representing a 24.2% YoY growth from Rs 31.76 Cr, while Profit Before Tax fell to Rs 1.28 Cr from Rs 1.51 Cr in Q1 FY26. The statutory auditors issued a qualified conclusion and flagged material uncertainty regarding going concern, citing negative net working capital of Rs 15.60 Cr. The company has defaulted on NCD redemptions worth Rs 2.12 Cr, prompting an 'Event of Default' notice from the debenture trustee. Liquidity constraints also caused delays in statutory dues and pending renewal of a Rs 6.00 Cr bank credit facility.
- Net sales grew 24.2% YoY to Rs 39.44 Cr (Rs 3,944.31 Lakhs) in Q1 FY27 from Rs 31.76 Cr in Q1 FY26
- Profit before tax declined 15.1% YoY to Rs 1.28 Cr (Rs 128.01 Lakhs) with operating margin dropping to 6.51%
- Auditor flagged defaulted NCD redemption dues of Rs 2.12 Cr and a formal Event of Default notice from Axis Trustee Services
- Material uncertainty on going concern raised due to negative net working capital of Rs 15.60 Cr (current liabilities of Rs 67.07 Cr vs current assets of Rs 51.47 Cr)
- Delays reported in depositing statutory dues alongside an unrenewed Rs 6.00 Cr cash credit facility from Union Bank of India
Harish Textile Engineers reported Q1 FY27 standalone revenue of ₹39.44 Cr and net profit of ₹0.90 Cr, down from ₹1.85 Cr in the previous quarter. The statutory auditor issued a qualified limited review report highlighting default on NCD redemption obligations totaling ₹211.51 Lakhs and an Event of Default notice from the Debenture Trustee. Furthermore, the auditor emphasized material uncertainty regarding the company's going concern status due to negative net working capital of ₹1,559.83 Lakhs (current liabilities of ₹6,706.82 Lakhs vs current assets of ₹5,146.99 Lakhs). Additional flags include unformalized renewal of a ₹600 Lakhs bank facility and delays in statutory and MSME dues.
- Auditor flagged default on redemption of Series-III and Series-IV NCDs aggregating to ₹211.51 Lakhs (₹64.72 Lakhs and ₹146.79 Lakhs) with Event of Default notice issued
- Material uncertainty over going concern raised due to net negative working capital of ₹1,559.83 Lakhs with current liabilities reaching ₹6,706.82 Lakhs
- Qualified audit conclusion noted unvalidated MSME interest liability provision of ₹95.75 Lakhs and unquantified GST input tax credit reversals
- Working capital facility of ₹600.00 Lakhs from Union Bank of India (₹600.79 Lakhs outstanding) lacks formal sanction renewal post March 25, 2026
- Standalone Q1 net profit came in at ₹0.8956 Cr on revenue of ₹39.44 Cr
Harish Textile Engineers Ltd has resolved a GST dispute related to the financial year 2022-23. The matter involved an alleged excess availment of Input Tax Credit (ITC) amounting to Rs 1,93,340. The company has paid the full tax, interest, and applicable penalty, receiving formal acknowledgement (Form GST DRC-04) from the GST Authority in Vapi, Gujarat, on August 10, 2026. Given the company's TTM revenue of Rs 138 Cr, this settlement is financially immaterial.
- Settlement of GST dispute involving alleged excess ITC of Rs 1,93,340 for FY 2022-23
- Payment acknowledged by GST Authority via Form DRC-04 dated August 10, 2026
- Matter originated from a DRC-01A intimation received on July 17, 2026
- Total settlement amount represents less than 0.01% of the company's TTM revenue of Rs 138 Cr
Harish Textile Engineers has scheduled a board meeting for August 14, 2026, to approve its unaudited standalone financial results for the quarter ended June 30, 2026. The company is coming off a recovery year in FY26, where it reported a net profit of Rs 6.0 Cr compared to near-zero in FY25. Investors will be monitoring if the company can sustain its quarterly revenue run rate of ~Rs 35 Cr and improve its operating margins, which stood at 9.2% TTM. The high debt-to-equity ratio of 2.14 remains a key metric to watch in the upcoming balance sheet disclosures.
- Board meeting scheduled for August 14, 2026, to approve Q1 results
- Trading window for insiders closed from July 1, 2026, until 48 hours post-announcement
- Company reported TTM revenue of Rs 138 Cr and PAT of Rs 6 Cr
- Debt-to-equity ratio stands at a high 2.14 as per latest context
- Market capitalization is approximately Rs 23 Cr, classifying it as a micro-cap
Harish Textile Engineers Ltd held a meeting with debenture holders on August 6, 2026, to address defaults and delays in the redemption and interest payments of its 7% Secured NCDs (Series III and IV). The company is currently under significant financial stress with a debt of ₹30 Cr, which is 130% of its current market capitalization of ₹23 Cr. While proposals for an 'amicable solution' were discussed, no final resolution was reached, and further internal discussions are required. The high debt-to-equity ratio of 2.14 and the unrated nature of these unlisted debentures pose a substantial risk to equity shareholders.
- Meeting held on August 6, 2026, to discuss default/delay in redemption of 7% Secured NCDs
- Total company debt of ₹30 Cr significantly exceeds its net worth of ₹14 Cr
- Debt-to-equity ratio stands at a high 2.14 as per latest financial context
- The NCDs involved (Series III and IV) are unlisted and unrated, complicating valuation and recovery
- No final resolution reached; parties agreed to further internal discussions for a solution
Harish Textile Engineers Ltd has been directed to appear before the District Legal Services Authority, CBD Belapur, on August 17, 2026, for mediation proceedings initiated by Vashi Integrated Solutions Limited. This follows a mediation application (No. 52 of 2026) under Section 12A of the Commercial Courts Act. The company previously filed its reply to the summons on August 1, 2026. While the financial impact is currently unquantified, the company's high debt-to-equity ratio of 2.14 and small net worth of Rs 14 Cr make any potential legal liability a point of concern for investors.
- Mediation hearing scheduled for August 17, 2026, at 12:00 Noon at CBD Belapur
- Company filed its formal reply to the summons on August 1, 2026
- Proceedings involve the Managing Director and Chief Financial Officer (CFO) as directed parties
- Company reports a high Debt-to-Equity ratio of 2.14 against a net worth of Rs 14 Cr
- TTM Revenue stands at Rs 138 Cr with a thin OPM of 9.2%
Harish Textile Engineers has disclosed a continuing default on the redemption of its 7% unlisted, secured NCDs, with a total outstanding principal of Rs 2.115 crore. While the company cleared interest obligations up to June 30, 2026, it remains unable to repay the principal for Series III and IV debentures due to financial constraints. The default involves 20 investors and dates back to late 2025. With a total indebtedness of Rs 30.25 crore against a market cap of only Rs 22 crore, the company's liquidity position appears severely strained.
- Total principal default of Rs 2.115 crore across Series III (Rs 0.647 cr) and Series IV (Rs 1.468 cr) NCDs
- Original default dates trace back to October 7, 2025, and December 20, 2025, indicating a prolonged liquidity issue
- Total financial indebtedness of the company stands at Rs 30.25 crore as of July 31, 2026
- Interest cleared up to June 30, 2026, but interest accruing from July 1, 2026, remains unpaid
- The default affects 20 debenture holders for the 7% unlisted, secured, unrated instruments
Harish Textile Engineers has reported a continuing default on the redemption of its 7% unlisted, secured Non-Convertible Debentures (NCDs) totaling Rs 2.1151 crore. While the company has discharged interest liabilities up to June 30, 2026, the principal amounts for Series III (Rs 0.65 Cr) and Series IV (Rs 1.47 Cr) remain unpaid since late 2025. The company cites ongoing financial constraints as the reason for the delay and is currently engaging with 20 debenture holders through a trustee to arrange funds.
- Total principal default amount stands at Rs 2.1151 crore as of July 31, 2026.
- Series III principal default of Rs 0.6472 crore has been outstanding since October 7, 2025.
- Series IV principal default of Rs 1.4679 crore has been outstanding since December 20, 2025.
- Total financial indebtedness of the company is reported at Rs 30.25 crore.
- Interest is currently in default from July 1, 2026, onwards, following the payment of previous dues up to June 30, 2026.
Harish Textile Engineers (Market Cap: ₹23 Cr) has reported that the NCLT Mumbai Bench has reserved its order regarding an insolvency petition filed by M/s. Kamlesh Corporation. The petition, filed under Section 9 of the IBC, concerns alleged outstanding operational dues. The Tribunal declined further adjournments on July 10, 2026, and has concluded hearings, with the final judgment pending. Given the company's high Debt-to-Equity ratio of 2.14 and total debt of ₹30 Cr, the outcome of this insolvency proceeding is a critical monitorable.
- Petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 for alleged operational dues.
- NCLT Mumbai Bench declined further adjournments in the order dated July 10, 2026.
- The matter is now 'Reserved for Orders' following the hearing of submissions from the applicant.
- Company reported a high Debt-to-Equity ratio of 2.14 as of the latest financial context.
- Total debt stands at ₹30 Cr against a small market capitalization of ₹23 Cr.
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