BHANDARI - Bhandari Hosiery
📢 Recent Corporate Announcements
Bhandari Hosiery Exports Limited has officially fixed February 25, 2026, as the record date for its upcoming rights issue. This date will determine the eligibility of shareholders to receive Rights Entitlements (REs) for purchasing additional equity shares. The company is currently in the process of obtaining a fresh ISIN and coordinating with NSDL and CDSL for the digital credit of these entitlements. This procedural step is essential for the execution of the company's capital raising plans.
- Record date for the Rights Issue is fixed as Wednesday, February 25, 2026.
- Rights Entitlements will be credited to eligible shareholders' demat accounts prior to the issue opening.
- The company is obtaining a fresh ISIN specifically for the purpose of this Rights Issue.
- The announcement complies with Regulation 42 of SEBI LODR and Regulation 68 of SEBI ICDR.
Bhandari Hosiery Exports has finalized the terms for its Rights Issue to raise up to Rs 49.30 crores. The company will issue 19.20 crore shares at a price of Rs 2.56 per share, which represents a significant expansion of the equity base. The rights ratio is fixed at 4:5, and the record date for eligibility is February 25, 2026. The issue will be open for subscription from March 6 to March 20, 2026.
- Total fundraise of Rs 49.30 crores through the issuance of 19,20,39,722 equity shares
- Rights entitlement ratio set at 4 equity shares for every 5 shares held as of the record date
- Issue price fixed at Rs 2.56 per share (Face Value Re 1 + Premium Rs 1.56)
- Record date for determining eligible shareholders is Wednesday, February 25, 2026
- Post-issue equity capital will increase from 24.00 crore shares to 43.21 crore shares
Bhandari Hosiery Exports Limited has received in-principle approval from both BSE and NSE for its proposed Rights Issue of equity shares aggregating up to Rs 49.30 Crores. Following this regulatory milestone, the company has scheduled a Right Issue Committee meeting for February 19, 2026, to finalize critical terms. During this meeting, the committee will determine the offer price, the entitlement ratio, and the record date for the issue. This capital infusion is a significant step for the company's financial planning and growth strategy.
- Received in-principle approval from NSE and BSE on February 18, 2026, for a Rights Issue.
- Total fundraise amount is fixed at an aggregate of up to Rs 49.30 Crores.
- Committee meeting scheduled for February 19, 2026, to decide on Offer Price and Rights Ratio.
- The Record Date for determining eligible shareholders will be finalized in the upcoming meeting.
- MUFG Intime India Private Limited is appointed as the Registrar and Transfer Agent (RTA) for the issue.
Bhandari Hosiery Exports reported a mixed performance for Q3 FY26, with net profit increasing by 8.2% YoY to ₹2.18 crore. This profit growth came despite a 6.3% decline in revenue from operations, which fell to ₹59.05 crore from ₹63.00 crore in the same quarter last year. For the nine-month period, the company showed stronger bottom-line growth of 15%, reaching a net profit of ₹5.88 crore. The results indicate improved margin management as expenses were curtailed more significantly than the revenue drop.
- Net Profit for Q3 FY26 stood at ₹2.18 crore, up 8.2% from ₹2.02 crore in Q3 FY25.
- Revenue from operations decreased by 6.3% YoY to ₹59.05 crore compared to ₹63.00 crore in the previous year.
- Nine-month net profit (Apr-Dec 2025) grew 15% YoY to ₹5.88 crore from ₹5.12 crore.
- Total expenses for the quarter were reduced to ₹56.41 crore from ₹60.22 crore in the year-ago period.
- Basic EPS for the quarter improved slightly to ₹0.09 from ₹0.08 YoY.
Bhandari Hosiery Exports Limited has approved the Draft Letter of Offer (DLOF) for a proposed Rights Issue of up to Rs 49.30 Crores. The company plans to issue fully paid-up equity shares to its existing shareholders as of a future record date. The specific ratio, issue price, and other terms will be determined by the Rights Issue Committee at a later stage. The company is now seeking in-principle approval from the stock exchanges for the issuance.
- Approved Draft Letter of Offer (DLOF) for a Rights Issue aggregating up to Rs 49.30 Crores.
- The issue will be offered to existing equity shareholders as of a record date to be fixed later.
- Authorized the filing of the DLOF with BSE and NSE for necessary in-principle approvals.
- Recorded the appointment of various intermediaries to manage the Rights Issue process.
Bhandari Hosiery Exports Limited has announced a minor rescheduling of its Rights Issue Committee (RIC 2026) meeting. Originally set for January 14, 2026, the meeting will now be held on January 16, 2026, to approve the Draft Letter of Offer. This committee was formed following the board's decision on January 2, 2026, to proceed with a capital raise via a rights issue. The meeting is a procedural step required to seek in-principle approval from the BSE and NSE.
- Rights Issue Committee meeting rescheduled from January 14 to January 16, 2026.
- The meeting's primary agenda is to approve the contents of the Draft Letter of Offer.
- The RIC 2026 was established following a Board Meeting held on January 2, 2026.
- Post-approval, the company will submit the draft to stock exchanges for in-principle clearance.
Bhandari Hosiery Exports Limited has submitted its compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The filing pertains to the quarter ended December 31, 2025, and was issued by the company's Registrar and Share Transfer Agent, MUFG Intime India Pvt. Ltd. This document confirms that the company has followed the necessary procedures for the dematerialization of share certificates. Such filings are a standard regulatory requirement for all listed companies in India to ensure the integrity of shareholding records.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Issued under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018.
- The Registrar and Share Transfer Agent (RTA) is MUFG Intime India Pvt. Ltd.
- Confirms that share certificates received for dematerialization were processed and cancelled as per SEBI norms.
Bhandari Hosiery Exports Limited has approved a fundraise of Rs 49.30 crores through a Rights Issue to support its growth and financial health. The majority of the proceeds, Rs 34.00 crores, will be used to strengthen long-term working capital, while Rs 6.87 crores is allocated for debt reduction. A Rights Issue Committee has been formed to finalize the terms, with a follow-up meeting scheduled for January 14, 2026, to approve the Draft Letter of Offer. This move indicates a strategic push to improve liquidity and reduce interest burdens.
- Board approved raising Rs 49.30 crores through a Rights Issue (2026)
- Rs 34.00 crores earmarked for strengthening long-term working capital requirements
- Rs 6.87 crores allocated for the reduction of existing long-term loans
- Rights Issue Committee (RIC) formed to finalize allotment and terms by mid-January
- Next RIC meeting scheduled for January 14, 2026, to approve the Draft Letter of Offer
Bhandari Hosiery Exports Limited has approved raising ₹49.30 crores through a Rights Issue to strengthen its financial position. The proceeds are primarily allocated towards ₹34.00 crores for long-term working capital and ₹6.87 crores for the reduction of long-term debt. A Rights Issue Committee (RIC) has been formed to oversee the process, with a follow-up meeting scheduled for January 14, 2026, to approve the Draft Letter of Offer. This capital infusion is intended to improve liquidity and reduce interest burdens.
- Board approved raising ₹49.30 crores through a Rights Issue (2026).
- ₹34.00 crores allocated for strengthening long-term working capital requirements.
- ₹6.87 crores designated for the reduction of existing long-term loans.
- Rights Issue Committee (RIC) formed to finalize terms and oversee the allotment process.
- RIC meeting scheduled for January 14, 2026, to approve the Draft Letter of Offer (DLOF).
Bhandari Hosiery Exports Limited has scheduled a Board Meeting on January 2, 2026, to deliberate on a proposal for raising long-term equity funds. The company intends to raise up to Rs 50 crore through a Rights Issue, with the primary objective of strengthening its working capital requirements. The Board will also consider forming a Rights Issue Committee (RIC) to finalize the terms, pricing, and appointment of intermediaries. This move follows the updated SEBI (ICDR) Regulations regarding the conduct of Rights Issues.
- Board meeting scheduled for January 2, 2026, to approve a fundraise of up to Rs 50 crore.
- Fundraising to be executed through a Rights Issue to existing shareholders.
- Proceeds are earmarked for strengthening the company's working capital position.
- A Rights Issue Committee (RIC) will be formed to manage execution and determine final terms.
- The process will adhere to SEBI (ICDR) Regulations as modified in April 2025.
Bhandari Hosiery Exports Limited has announced the closure of its trading window for all insiders starting January 1, 2026. This mandatory regulatory step is taken ahead of the declaration of the company's unaudited financial results for the quarter ending December 31, 2025. The window will remain closed until 48 hours after the results are made public. The specific date for the board meeting to approve these results will be announced later.
- Trading window closure effective from Thursday, January 1, 2026
- Closure pertains to the Unaudited Financial Results for the quarter ended December 31, 2025
- Restriction applies to Promoters, Directors, and Designated Persons
- Window to reopen 48 hours after the financial results are declared
Financial Performance
Revenue Growth by Segment
The company operates in a single segment, Textiles. Revenue for FY24 was INR 266.7 Cr, representing a decline of 5.86% from INR 283.3 Cr in FY23. For FY25, revenue is projected to grow by 3-5% to reach INR 270-280 Cr, with H1 FY25 already achieving INR 126 Cr.
Geographic Revenue Split
Not specifically disclosed in available documents, though the company is a Government of India recognized Export House, indicating a significant portion of revenue likely comes from international markets.
Profitability Margins
PAT margin stood at 2.15% in FY24, a slight improvement from 2.05% in FY23. Operating margins improved significantly to 10.65% in H1 FY25 compared to 9.5% in FY24, driven by the shift toward value-added printed fabrics.
EBITDA Margin
Operating margins are expected to stabilize at 10-11% in the near term, up from historical levels of 8-9%, due to the commencement of the printed fabric unit in March 2024 which offers higher realizations.
Capital Expenditure
The company recently completed a capex phase for installing machinery for printed fabrics, which became operational in March 2024. Specific INR value for the capex was not disclosed, but it was funded through debt and internal accruals.
Credit Rating & Borrowing
Ratings were upgraded in December 2024 to CRISIL BBB/Stable and CRISIL A3+. Borrowing costs are expected to decrease following the prepayment of INR 15 Cr in debt using rights issue proceeds.
Operational Drivers
Raw Materials
Cotton yarn and fabric are the primary raw materials, accounting for the bulk of the cost of goods sold. Specific percentage of total cost is not disclosed, but volatility in these prices directly impacts the 8-11% operating margin.
Import Sources
Primarily sourced from domestic markets in India, specifically the Punjab region (Ludhiana), which is a major textile hub.
Capacity Expansion
Current capacity is centered at the Ludhiana unit. Recent expansion involved adding a printed fabric line (operational March 2024) to increase the share of value-added products.
Raw Material Costs
Raw material costs are highly volatile due to cotton price fluctuations. The company manages this by passing on price increases to customers with a one-quarter lag, maintaining margins between 8-11%.
Manufacturing Efficiency
Bank limit utilization averaged 84% through October 2024, indicating high capacity utilization and a need for efficient working capital management.
Strategic Growth
Expected Growth Rate
3-5%
Growth Strategy
Growth will be achieved through the increased sale of value-added printed fabrics, which carry higher margins than standard knitted garments. Additionally, the company strengthened its balance sheet via a INR 48 Cr rights issue in August 2024, reducing debt by INR 15 Cr to lower interest costs and improve the interest coverage ratio to ~3x.
Products & Services
High-fashion knitted garments, cotton yarn, grey fabric, denim fabric, and printed fabrics.
Brand Portfolio
Bhandari Hosiery Exports Limited (BHEL).
New Products/Services
Printed fabrics, launched in March 2024, are expected to contribute to a 1-2% increase in overall operating margins.
Market Expansion
The company is focusing on increasing its market share in the high-fashion knitted garment segment by utilizing its new printing capabilities.
External Factors
Industry Trends
The textile industry is shifting toward value-added and processed fabrics. BHEL is positioning itself by moving from basic knitting to printed and high-fashion garments to capture higher realizations.
Competitive Landscape
Operates in a highly fragmented and competitive textile market in Ludhiana, competing with both organized and unorganized players.
Competitive Moat
The company's moat is built on the Bhandari group's 80-year history (established 1942) and the promoters' 30-year experience, providing deep-rooted supplier networks and customer trust that are difficult for new entrants to replicate.
Macro Economic Sensitivity
Highly sensitive to agricultural output (cotton) and inflation. Cotton price volatility can impact operating margins by 200-300 basis points.
Consumer Behavior
Increasing demand for high-fashion and printed knitted wear is driving the company's shift in product mix.
Geopolitical Risks
Trade barriers or changes in export incentives for the textile industry could impact the competitiveness of their knitted garments in international markets.
Regulatory & Governance
Industry Regulations
Subject to textile industry pollution norms and Government of India export house regulations. Compliance with SEBI Listing Obligations is maintained for its BSE/NSE listings.
Environmental Compliance
The company is amfori BSCI certified, indicating compliance with social and environmental standards required for global exports.
Taxation Policy Impact
Not specifically disclosed; however, the company is subject to standard Indian corporate tax rates and export-related fiscal incentives.
Risk Analysis
Key Uncertainties
Volatility in raw cotton prices and the ability to maintain high capacity utilization (currently ~84-90%) are the primary business risks.
Geographic Concentration Risk
Manufacturing is concentrated in a single location in Ludhiana, Punjab, making it vulnerable to regional operational disruptions.
Third Party Dependencies
High dependency on cotton farmers and yarn suppliers; any disruption in the domestic cotton supply chain would halt production.
Technology Obsolescence Risk
The textile industry requires periodic upgrades to knitting and printing technology; the company recently addressed this with its 2024 capex.
Credit & Counterparty Risk
Moderate risk; the company maintains a current ratio of 1.48x and has improved its financial profile through equity infusion, reducing counterparty default risk.