Digjam Limited (DIGJAMLMTD)
₹54.12 +4.99% last close, 16 Oct
Q2 FY27 results
📅 Next results: 21 Oct 2026 (board meeting)Digjam Limited's board meets on 21 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q4 FY26, Digjam's revenue was ₹8.2 Cr (+32.8% year on year, +17.6% on the previous quarter), and net profit ₹-0.7 Cr (against a profit a year earlier); the operating margin was 13.9%.
| Q4 FY26 (₹ Cr) | Value | YoY vs Q4 FY25 | QoQ |
|---|---|---|---|
| Revenue | ₹8.2 | +32.8% | +17.6% |
| Operating profit | ₹1.1 | +6.5% | +32.6% |
| Net profit | ₹-0.7 | to loss | to loss |
| EPS (₹) | -0.36 | to loss | to loss |
| Operating margin | 13.9% | — | — |
DIGJAMLMTD exchange data
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📢 Recent Corporate Announcements
Digjam Limited has concluded its 11th Annual General Meeting (AGM) held on September 28, 2026, via Video Conferencing. The company submitted its voting results and the consolidated Scrutinizer's Report in compliance with Regulation 44 of SEBI LODR. The meeting commenced at 11:00 AM and concluded at 11:32 AM after allowing 15 minutes for e-voting completion. This is a routine administrative compliance filing with no operational or financial update disclosed.
- 11th AGM held on September 28, 2026, via Video Conferencing
- Meeting commenced at 11:00 A.M. and concluded at 11:32 A.M.
- E-voting was kept open for 15 minutes before conclusion
- Consolidated Scrutinizer's Report dated September 28, 2026 submitted to exchanges
The NCLT Chennai Bench has admitted the joint petition regarding the Scheme of Arrangement between Reid & Taylor International Private Limited and Digjam Limited. The order follows shareholder and creditor approvals evidenced by the Chairman's report dated August 16, 2026. The tribunal directed notices to regulatory authorities, giving a 30-day window for representations, and scheduled the next hearing for October 28, 2026. This merger is a critical strategic move for Digjam (TTM revenue of Rs 33 Cr) to restructure and exit financial distress, though it will dilute public shareholding from 25% to 5.48%.
- NCLT Chennai admitted the petition under Sections 230-232 via order dated September 2, 2026
- Shareholder and creditor approval recorded via Chairman's report dated August 16, 2026
- Regulatory authorities given 30 days to submit representations on the proposed scheme
- Next hearing for final scheme consideration scheduled for October 28, 2026
The NCLT Chennai Bench has admitted the second motion petition for the proposed Scheme of Arrangement involving the demerger/merger between Reid & Taylor International Private Limited and Digjam Limited. This follows the Chairman's report dated August 16, 2026, confirming shareholder and creditor approvals. The Tribunal has directed notices to statutory authorities with a 30-day representation window and scheduled the next hearing for October 28, 2026. Structurally, this merger is Digjam's core turnaround strategy, though it is expected to dilute public shareholding from 25.0% down to 5.48%.
- NCLT Chennai admitted the joint petition under Section 230-232 on September 2, 2026
- Shareholder and creditor approval recorded via Chairman's report dated August 16, 2026
- Statutory authorities given 30 days to file representations post-notice
- Next NCLT hearing fixed for October 28, 2026
- Merger scheme will dilute public shareholding significantly from 25.0% to 5.48%
Digjam Limited has issued notice for its 11th Annual General Meeting scheduled for September 28, 2026, alongside publishing its FY2025-26 Integrated Annual Report. Financial disclosures within the report highlight assets held for sale worth Rs 53.19 crore (Rs 5,318.53 lakhs) relating to its discontinued Jamnagar manufacturing unit. The company incurred a total comprehensive loss of Rs 97.90 lakhs in FY26 and faces a negative working capital gap of Rs 21.91 crore, with current liabilities of Rs 43.52 crore exceeding current assets of Rs 21.60 crore. Routine resolutions, including the reappointment of a retiring director and ratification of cost auditor remuneration of Rs 35,000, are slated for voting.
- 11th AGM scheduled for Monday, September 28, 2026, via video conferencing
- Non-current assets held for sale valued at Rs 5,318.53 lakhs (land at discontinued Jamnagar unit)
- Working capital deficit reported at Rs 2,191.48 lakhs (current liabilities of Rs 4,351.84 lakhs vs current assets of Rs 2,160.36 lakhs)
- Total comprehensive loss for FY26 stood at Rs 97.90 lakhs
- Proposed ratification of cost auditor remuneration of Rs 35,000 for FY27
Digjam Limited has issued a communication under Regulation 36(1)(b) of SEBI LODR to shareholders whose email addresses are not registered as of August 28, 2026, providing web links to the FY2025-26 Annual Report. The company's 11th Annual General Meeting is scheduled to be held virtually on Monday, September 28, 2026, at 11:00 AM IST. The notice also reminds physical mode shareholders to complete mandatory KYC updations and dematerialisation per SEBI guidelines. This is a routine administrative compliance filing with no impact on business operations or financials.
- 11th Annual General Meeting scheduled for Monday, September 28, 2026, at 11:00 AM IST via Video Conferencing.
- Weblink for FY2025-26 Annual Report sent to physical/unregistered shareholders as of August 28, 2026 cut-off.
- Mandatory KYC updation reminder issued for physical holders pursuant to SEBI circular dated May 07, 2024.
- Company reported FY26 revenue of Rs 33.28 Cr and a net loss of Rs 1.0 Cr against high D/E of 13.60.
Digjam Limited has issued the notice for its 11th Annual General Meeting scheduled for September 28, 2026, alongside its FY26 Integrated Annual Report. The accompanying notes reveal that non-current assets worth ₹53.19 crore (primarily land at the discontinued Jamnagar unit) are classified as held for sale. The company reported a total comprehensive loss of ₹97.90 lakhs (₹0.98 crore) for FY26, with current liabilities exceeding current assets by ₹21.91 crore.
- 11th Annual General Meeting to be held virtually on September 28, 2026
- Non-current assets held for sale (Jamnagar land) valued at ₹5,318.53 lakhs (₹53.19 crore)
- Working capital deficit of ₹2,191.48 lakhs (₹21.91 crore) with current liabilities at ₹4,351.84 lakhs
- Discontinued operations incurred a comprehensive loss of ₹332.35 lakhs in FY26
- Cost auditor remuneration proposed at ₹35,000 for FY27
Digjam Limited equity shareholders have approved the Scheme of Arrangement with Reid & Taylor International Private Limited (RTIL) at an NCLT-convened meeting on August 16, 2026. Excluding promoter shareholding, 98.99% of the 9,86,721 public votes polled were in favour of the resolution, while overall voting approval stood at 99.94%. Additionally, unsecured creditors of RTIL approved the scheme with requisite majority on the same date. The scheme now moves to the Hon'ble NCLT Chennai Bench for final sanction.
- 98.99% of non-promoter votes (9,76,777 votes) polled in favour of the Scheme of Arrangement
- Overall shareholder approval stood at 99.94% with 1,57,97,742 votes in favour
- Total 32,566 shareholders were registered on the cut-off date of August 10, 2026
- Unsecured creditors of Reid & Taylor International Private Limited also approved the scheme on August 16, 2026
Digjam Limited held its NCLT-convened equity shareholders meeting on August 16, 2026, to seek approval for the proposed Scheme of Arrangement with Reid & Taylor International Private Limited (RTIL). The scrutinizer report and official e-voting results are scheduled to be disclosed on or before August 18, 2026. The transaction is Digjam's primary strategic restructuring initiative to combine suiting operations and turnaround the business (which posted TTM revenue of ₹33 Cr and net loss of ₹1 Cr against ₹60 Cr debt). If sanctioned, the restructuring is slated to dilute public shareholding from 25.0% down to 5.48%.
- NCLT-directed shareholder meeting concluded on August 16, 2026, for the Scheme of Arrangement with RTIL.
- Voting outcome and Scrutinizer Report to be submitted on or before August 18, 2026.
- Meeting convened pursuant to the NCLT Chennai Bench order dated June 19, 2026.
- Notice dispatch was executed based on the cut-off date of July 3, 2026.
Digjam Limited reported a total comprehensive profit of ₹0.83 Cr for Q1 FY27, down from ₹0.96 Cr in the year-ago period. Revenue from continuing operations grew 89% YoY to ₹7.46 Cr, though the company's sole manufacturing facility in Jamnagar has been discontinued since March 2025. A significant liquidity risk persists as current liabilities exceed current assets by ₹21.08 Cr, leading to a 'material uncertainty' warning from auditors regarding the company's ability to continue as a going concern. The company is currently dependent on a pending merger with Reid & Taylor International and the sale of non-core assets valued at ₹53.19 Cr.
- Revenue from continuing operations rose to ₹7.46 Cr in Q1 FY27 from ₹3.95 Cr in Q1 FY26.
- Net profit for the quarter stood at ₹0.82 Cr, supported by a reduction in finance costs to near zero from ₹0.70 Cr YoY.
- Current liabilities exceed current assets by ₹21.08 Cr as of June 30, 2026.
- Jamnagar manufacturing facility remains discontinued with assets held for sale valued at ₹53.19 Cr.
- The proposed merger with Reid & Taylor International (RTIL) remains pending regulatory approvals with an appointed date of July 1, 2025.
Digjam Limited reported a net profit of ₹0.82 Cr for Q1 FY27, a decrease from ₹0.96 Cr in the year-ago period, despite revenue growing 88.7% to ₹7.46 Cr. The company faces severe liquidity pressure, with current liabilities exceeding current assets by ₹21.08 Cr, which is over 5x its reported net worth of ₹4 Cr. Operations at the Jamnagar manufacturing facility remain discontinued since March 31, 2025, with assets worth ₹53.19 Cr classified as held for sale. The auditor has highlighted material uncertainty regarding the company's ability to continue as a going concern, pending the successful execution of a merger with Reid & Taylor International (RTIL).
- Revenue from operations increased to ₹7.46 Cr in Q1 FY27 from ₹3.95 Cr in Q1 FY26.
- Net profit for the quarter stood at ₹0.82 Cr compared to ₹0.96 Cr in the previous year's corresponding quarter.
- Current liabilities exceed current assets by ₹2,107.75 lakhs (₹21.08 Cr) as of June 30, 2026.
- Jamnagar manufacturing facility assets are classified as 'Held for Sale' with a carrying value of ₹5,318.53 lakhs (₹53.19 Cr).
- The proposed merger with Reid & Taylor International Private Limited (RTIL) has an appointed date of July 1, 2025, pending final approvals.
Digjam Limited has scheduled a shareholder meeting on August 16, 2026, to vote on the Scheme of Arrangement with Reid & Taylor International Private Limited (RTIL). This merger is the company's primary strategy to exit its stressed financial state, characterized by a high debt-to-equity ratio of 13.60 and low TTM revenue of Rs 33 Cr. The scheme requires approval from a 75% majority in value of shareholders and a 'majority of minority' from public shareholders. Post-merger, public shareholding is expected to drop significantly from 25% to 5.48%.
- Shareholder meeting scheduled for August 16, 2026, at 11:00 AM IST via video conferencing.
- Cut-off date for determining voting eligibility is August 10, 2026.
- Remote e-voting period runs from August 13 (9:00 AM) to August 15, 2026 (5:00 PM).
- Public shareholding in Digjam will decrease from 25% to 5.48% following the merger.
- Approval requires a three-fourths (75%) majority in value of the equity shareholders.
Digjam Limited is convening an NCLT-directed shareholder meeting on August 16, 2026, to approve its merger with Reid & Taylor International Private Limited (RTIL). The proposed share exchange ratio is 46,481 Digjam shares for every 100 RTIL shares. While total public shareholding will marginally increase to 25.03%, the stake of existing Digjam public shareholders will be significantly diluted from 25% to 5.48%. This merger is a critical strategic move for Digjam, which currently faces high debt of ‡60 Cr against a small net worth of ‡4 Cr.
- Share exchange ratio set at 46,481 equity shares of Digjam for every 100 shares of RTIL
- Existing public shareholders' stake to be diluted from 25% to 5.48% post-scheme
- Total post-merger public shareholding will be 25.03%, including 19.55% held by RTIL's QIBs
- NCLT-convened meeting scheduled for August 16, 2026, with a voting cut-off date of August 10, 2026
- Consolidation aims to integrate the textile business and leverage brand synergies to exit financial distress
Digjam Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations for the period ended June 30, 2026. The filing confirms that share certificates received for dematerialization were processed, listed on exchanges, and physical copies were mutilated/cancelled within stipulated timelines. This is a standard administrative procedure and does not impact the company's financial position. Investors should note the company remains in a stressed financial state with a debt of ₹60 Cr against a net worth of only ₹4 Cr.
- Compliance certificate issued for the quarter ended June 30, 2026
- Confirmation of dematerialization/rematerialization processing by RTA MCS Share Transfer Agent Limited
- Physical certificates were mutilated and cancelled as per SEBI norms
- Company maintains a high Debt-to-Equity ratio of 13.60 based on latest financial context
The NCLT Chennai Bench has admitted the Scheme of Arrangement for demerging the textile business of Reid & Taylor International into Digjam Limited. This consolidation aims to create a fully integrated textile entity, optimizing resources, specialized skills, and administrative expenses. The Tribunal has directed Digjam to convene meetings of its equity shareholders to vote on the proposal, marking a significant step in the restructuring process. The merger is expected to enhance long-term value for shareholders through operational synergies and economies of scale.
- NCLT Chennai Bench admitted the joint application for the demerger scheme on June 19, 2026.
- The scheme involves transferring the 'Textile Business' of Reid & Taylor International to Digjam Limited.
- Digjam has an authorized share capital of 100.05 crore equity shares and 27 crore preference shares.
- The Tribunal directed convening meetings for Digjam's equity shareholders and Reid & Taylor's unsecured creditors.
The National Company Law Tribunal (NCLT), Chennai Bench, has admitted the joint application for a Scheme of Arrangement between Digjam Limited and Reid & Taylor International Private Limited. The tribunal has directed Digjam to convene a meeting of its equity shareholders to consider and approve the demerger of the 'Textile Business' from Reid & Taylor into Digjam. This consolidation is designed to optimize resources, achieve economies of scale, and create a fully integrated textile entity. Shareholders of Reid & Taylor will be allotted shares in Digjam as part of the arrangement, which will be subsequently listed.
- NCLT Chennai Bench admitted the joint application for the Scheme of Arrangement on June 19, 2026.
- The scheme involves demerging the 'Textile Business' of Reid & Taylor International into Digjam Limited.
- Digjam is directed to convene a meeting of its equity shareholders to vote on the proposed arrangement.
- Reid & Taylor has 4 equity shareholders and 13 unsecured creditors involved in the procedural directions.
- The consolidation aims to optimize cash flows and specialized skills within a single integrated entity to improve profitability.
Financial Performance
Revenue Growth by Segment
Total operating income for the worsted fabrics segment declined by 92.05% from INR 11.19 Cr in FY19 to INR 0.89 Cr in FY20, following a 81.6% decline from INR 60.46 Cr in FY18.
Geographic Revenue Split
100% of manufacturing operations are concentrated at the sole facility in Jamnagar, Gujarat; specific geographic sales split is not disclosed in available documents.
Profitability Margins
Net margins are deeply negative; the company reported a PAT loss of INR 17.58 Cr in FY20 and INR 44.36 Cr in FY19. For 9MFY19, the net loss was INR 29.72 Cr on an income of INR 7.04 Cr.
EBITDA Margin
PBILDT margin was negative at -1,561.8% in FY20 (INR -13.90 Cr on INR 0.89 Cr revenue) compared to -237.7% in FY19 (INR -26.60 Cr on INR 11.19 Cr revenue).
Capital Expenditure
Property, Plant and Equipment (PPE) decreased from INR 58.93 Cr in 2024 to INR 0.09 Cr in 2025, primarily due to the reclassification of INR 57.14 Cr as 'Non-Current Asset held for Sale'.
Credit Rating & Borrowing
The company carries a 'CARE D' (Single D) rating as of 2018, signifying default or expected default. Borrowing costs are not specified, but the company faced ongoing delays in servicing term loan principal and interest.
Operational Drivers
Raw Materials
Worsted yarn and wool (implied by worsted fabric manufacturing); specific percentage of total cost is not disclosed in available documents.
Capacity Expansion
Current installed capacity is 5.50 million meters of worsted fabric at the Jamnagar facility; no expansion plans are detailed in the current reporting period.
Raw Material Costs
Not disclosed as a specific percentage of revenue for FY25; however, historical production was suspended due to the inability to fund working capital for procurement.
Manufacturing Efficiency
Capacity utilization is significantly low or zero during periods of production suspension; total operating income fell to just INR 0.89 Cr in FY20.
Strategic Growth
Growth Strategy
The primary strategy is the merger with Reid & Taylor International Private Limited (RTIL). This aims to achieve business synergies, brand consolidation, and operational restructuring to exit the stressed financial state.
Products & Services
Worsted fabrics, fine suitings, and textile manufacturing services.
Brand Portfolio
Digjam, Reid & Taylor (via proposed merger).
Market Expansion
The company is focusing on the merger with RTIL to stabilize its market position in the premium suiting segment.
Strategic Alliances
Scheme of Arrangement with Reid & Taylor International Private Limited (RTIL) and oversight by the AFINQUEST Group.
External Factors
Industry Trends
The textile industry is seeing consolidation of legacy brands under new management groups (like AFINQUEST) to resolve insolvency and leverage established brand equity.
Competitive Landscape
Competes in the premium worsted suiting market; key dynamics involve high working capital requirements and brand-driven consumer demand.
Competitive Moat
The company's moat is its long-standing brand heritage (established 1948) and specialized manufacturing capacity for worsted fabrics, though this is currently weakened by financial distress.
Macro Economic Sensitivity
High sensitivity to credit availability and interest rates; the company's ability to operate is directly tied to its liquidity position.
Regulatory & Governance
Industry Regulations
Operations are subject to textile manufacturing standards and pollution norms; the company must comply with SEBI Listing Obligations (LODR) for its merger process.
Taxation Policy Impact
Current Tax Assets (Net) stood at INR 1.56 Lakhs in 2025, down from INR 60.51 Lakhs in 2024.
Legal Contingencies
The company underwent Corporate Insolvency Resolution Process (CIRP) initiated by NCLT Ahmedabad on April 26, 2019. It is currently processing a Scheme of Arrangement with RTIL which received a 'no adverse objection' from BSE in December 2025.
Risk Analysis
Key Uncertainties
The primary uncertainty is the successful implementation and integration of the RTIL merger, which will dilute public shareholding by approximately 78% (from 25% to 5.48%).
Geographic Concentration Risk
100% of manufacturing is concentrated in Jamnagar, Gujarat, creating high regional risk.
Third Party Dependencies
High dependency on financial institutions for working capital; production was previously suspended due to lack of liquidity.
Technology Obsolescence Risk
The company noted that while audit trails were not enabled in previous accounting software, they are now preserving records in accordance with statutory requirements.
Credit & Counterparty Risk
Trade receivables stood at INR 6.04 Cr in 2025, a slight decrease from INR 6.15 Cr in 2024, indicating stable but limited credit exposure.
