Kalahridhaan Trendz Limited (KTL)
📢 Recent Corporate Announcements
Kalahridhaan Trendz Limited has issued an invitation for Expression of Interest (EoI) under Section 25(2)(h) of the Insolvency and Bankruptcy Code (IBC), 2016. The invitation was formally issued on October 13, 2026, setting the submission deadline for prospective resolution applicants as October 28, 2026. The company is undergoing Corporate Insolvency Resolution Process (CIRP), managed by Resolution Professional Chirag Shah. This follows severe business stress including heavy debt of Rs 67 Cr against a net worth of Rs 48 Cr.
- Invitation for Expression of Interest (EoI) under Section 25(2)(h) issued on October 13, 2026
- Last date to submit Expression of Interest fixed as October 28, 2026
- Company is officially under Corporate Insolvency Resolution Process (CIRP)
- Management and resolution process overseen by Resolution Professional Chirag Shah
Kalahridhaan Trendz Limited's Committee of Creditors (CoC) completed e-voting on October 12, 2026, approving key resolutions under the Corporate Insolvency Resolution Process (CIRP). The CoC approved the publication of Expression of Interest (Form-G) at a cost of Rs 98,000+GST to invite resolution plans, alongside eligibility criteria and an evaluation matrix. Additionally, the CoC authorized legal action under Section 19(2) of the IBC against suspended management for non-cooperation and approved filing for recovery of Rs 2,00,000+GST monthly rent against tenant Shreeji Texfab. The company carries existing debt of Rs 67 Cr and had experienced a 79.8% decline in net profit in H1 FY25.
- CoC approved publication of Form-G at Rs 98,000+GST to invite resolution applicants
- Approval of non-cooperation application under Section 19(2) of IBC against suspended management
- Approved legal application to recover monthly rent of Rs 2,00,000+GST or evict tenant Shreeji Texfab
- CoC concluded e-voting at 6:00 PM on October 12, 2026 following the October 5 meeting
Kalahridhaan Trendz Limited, currently undergoing Corporate Insolvency Resolution Process (CIRP), has issued an invitation for Expressions of Interest (EoI) under Section 25(2)(h) of the IBC. The formal invitation was issued on October 13, 2026, setting the submission deadline for October 28, 2026. The company faces high financial stress with total debt of ₹67 Cr against a net worth of ₹48 Cr (D/E of 1.40x). Resolution Professional Chirag Shah is overseeing the process to seek prospective resolution applicants.
- Resolution Professional issued an invitation for Expression of Interest on October 13, 2026
- Last date to submit Expression of Interest is October 28, 2026
- Process carried out under Section 25(2)(h) of the Insolvency and Bankruptcy Code, 2016
- Company is under CIRP with existing debt of ₹67 Cr against net worth of ₹48 Cr
SEBI has issued a final order debarring Kalahridhaan Trendz Limited (KTL) and its Managing Director Niranjan D Agarwal from the securities market for 2 years, while Whole-Time Director Aditya Agarwal and Non-Executive Director Sunitadevi Agarwal face 1-year debarments. The regulator imposed cumulative penalties of ₹1 crore across the noticees (₹40 lakh each on KTL and its MD, and ₹10 lakh each on the other two directors) under Sections 15HA and 15HB of the SEBI Act. The action follows findings that KTL made false corporate announcements regarding capacity expansion and fictitious Bangladesh orders to manipulate its stock, alongside non-disclosure of loan defaults to HDFC Bank. Additionally, SEBI has advised NSE to consider initiating compulsory delisting proceedings.
- SEBI debarred Kalahridhaan Trendz Limited and MD Niranjan D Agarwal from the securities market for 2 years
- Directors Aditya N Agarwal and Sunitadevi Niranjan Agarwal debarred from securities market access for 1 year
- Total penalties of ₹1,00,00,000 imposed across the 4 noticees (₹40 lakh on KTL, ₹40 lakh on MD, ₹10 lakh each on two directors), payable within 45 days
- SEBI noted false claims of capacity expansion to 7.00 lakh meters/month and fake buy orders from Bangladesh to inflate stock price
- NSE advised to take action under SOP for trading suspension and consider compulsory delisting
Kalahridhaan Trendz Limited (KTL) informed the exchange that the Interim Resolution Professional (IRP) has filed the admitted list of creditors as on September 03, 2026 before the NCLT Ahmedabad Bench. This follows the initiation of the Corporate Insolvency Resolution Process (CIRP) against the company pursuant to an NCLT order dated August 14, 2026. The company carries total outstanding debt of approximately ₹67 Cr against a net worth of ₹48 Cr.
- NCLT Ahmedabad Bench initiated CIRP against KTL via order dated August 14, 2026.
- List of creditors as on September 03, 2026 received, admitted, and submitted to NCLT on September 03, 2026.
- Proceedings are managed by Interim Resolution Professional Chirag Shah under IBBI regulations.
- Company carries ₹67 Cr in debt with high finance costs previously pressuring margins.
Kalahridhaan Trendz Limited has been admitted into the Corporate Insolvency Resolution Process (CIRP) by the NCLT Ahmedabad Bench Court-2 order dated August 14, 2026. Mr. Chirag Rajendrakumar Shah has been appointed as the Interim Resolution Professional (IRP). Creditors have been invited to submit their claims with proof by August 28, 2026, with the estimated completion of CIRP targeted for February 10, 2027.
- CIRP commenced against Kalahridhaan Trendz Limited on August 14, 2026 pursuant to NCLT Ahmedabad order in CP(IB) 16(AHM)2026
- Chirag Rajendrakumar Shah appointed as Interim Resolution Professional (IRP)
- Last date for submission of claims by financial, operational, and other creditors is August 28, 2026
- Estimated CIRP process closure date set for February 10, 2027
Kalahridhaan Trendz Limited has been admitted into the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016, by an NCLT Ahmedabad Bench order dated August 14, 2026. The powers of the company's Board of Directors stand suspended and are now vested with Interim Resolution Professional (IRP) Mr. Chirag Shah. A moratorium under Section 14 has taken effect, and creditors have been directed to submit their claims by August 28, 2026. With existing debt standing at Rs 67 Cr against a net worth of Rs 48 Cr (D/E of 1.40), the company enters a formal insolvency resolution phase.
- CIRP initiated by NCLT Ahmedabad Bench vide order dated August 14, 2026.
- Mr. Chirag Shah appointed as Interim Resolution Professional (IRP), suspending the Board of Directors.
- Creditors called to submit claims and proof on or before August 28, 2026.
- Moratorium declared under Section 14, prohibiting asset disposals and legal proceedings against the company.
Financial Performance
Revenue Growth by Segment
The company operates in a single business segment, 'TEXTILE', which recorded a revenue of INR 88.97 Cr for H1 FY25, representing a growth of 5.57% compared to INR 84.28 Cr in H1 FY24.
Geographic Revenue Split
Not disclosed in available documents; however, the company is headquartered in Ahmedabad, Gujarat.
Profitability Margins
Net Profit Margin significantly compressed to 1.1% in H1 FY25 (INR 0.98 Cr) from 5.7% in H1 FY24 (INR 4.83 Cr). This 79.8% decline in net profit is primarily driven by high material costs and finance charges.
EBITDA Margin
EBITDA margin stood at approximately 5.5% for H1 FY25 (calculated as PBT of INR 1.30 Cr + Finance Costs of INR 3.07 Cr + Depreciation of INR 0.53 Cr = INR 4.90 Cr EBITDA on INR 88.97 Cr revenue).
Capital Expenditure
The company undertook capital expenditure of INR 2.07 Cr for the purchase of fixed assets during the half-year ended September 30, 2024.
Credit Rating & Borrowing
Not disclosed in available documents; however, the company incurred finance costs of INR 3.07 Cr in H1 FY25, which is 3.45% of total revenue, indicating significant debt servicing requirements.
Operational Drivers
Raw Materials
Textile raw materials (likely cotton, yarn, or fabric) accounted for INR 71.20 Cr in H1 FY25, representing 80.02% of total revenue from operations.
Raw Material Costs
Cost of materials consumed rose to INR 71.20 Cr in H1 FY25 from INR 64.68 Cr in H1 FY24, a 10.08% increase, which outpaced revenue growth and pressured margins.
Strategic Growth
Expected Growth Rate
5-6%
Growth Strategy
The company is focusing on its core textile operations and recently transitioned from a private limited to a public limited company (Kalahridhaan Trendz Limited) to access capital markets. Growth is currently driven by volume increases in the textile segment, though profitability remains under pressure.
Products & Services
Textile products, including fabrics and apparel-related materials.
Brand Portfolio
Kalahridhaan Trendz.
External Factors
Industry Trends
The textile industry is currently facing margin pressure due to rising input costs and competitive pricing. KTL is positioned as a single-segment player, making it highly vulnerable to sector-specific downturns.
Competitive Landscape
Operates in the highly fragmented and competitive Indian textile and garmenting market.
Competitive Moat
The company does not demonstrate a strong cost or brand moat, as evidenced by the sharp decline in margins (from 5.7% to 1.1% PAT margin) when input costs rose.
Macro Economic Sensitivity
Highly sensitive to textile industry cycles and cotton/yarn price fluctuations in the Indian market.
Regulatory & Governance
Industry Regulations
Subject to standard textile manufacturing regulations and SEBI (LODR) Regulations 2015 for listed entities.
Taxation Policy Impact
The effective tax rate for H1 FY25 was approximately 25.1% (INR 0.32 Cr tax on INR 1.30 Cr PBT).
Legal Contingencies
The Statutory Auditor, M/s. Piyush Kothari & Associates, resigned on January 10, 2025, which is a critical governance event that may signal internal reporting or compliance challenges.
Risk Analysis
Key Uncertainties
The resignation of the statutory auditor shortly after the H1 FY25 results and the 79.8% year-on-year decline in net profit are the primary business uncertainties.
Geographic Concentration Risk
Operations are concentrated in Ahmedabad, Gujarat.
Third Party Dependencies
High dependency on raw material suppliers, with material costs representing 80% of the cost structure.
Credit & Counterparty Risk
Trade receivables stood at INR 27.74 Cr as of September 30, 2024, representing approximately 31% of half-yearly revenue.
