SELMC - SEL Mfg. Co
📢 Recent Corporate Announcements
SEL Manufacturing Company Limited (SELMC) has informed the exchanges regarding the resignation of Ms. Ratika Khandelwal from the post of Company Secretary and Compliance Officer. Her resignation was effective from the close of business hours on March 13, 2026. The company stated that the departure is due to personal reasons. This is a routine administrative change, and the company is expected to appoint a successor to maintain regulatory compliance.
- Ms. Ratika Khandelwal resigned as Company Secretary and Compliance Officer effective March 13, 2026.
- The resignation was submitted citing personal reasons with no other material concerns mentioned.
- The filing was made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.
- The company will need to appoint a new Compliance Officer within the statutory period of six months.
SEL Manufacturing Company Limited (SELMC) reported a sharp decline in revenue to ₹205.14 lakhs for Q3 FY26, down from ₹531.24 lakhs in the previous quarter. The company posted a net loss of ₹4,074.91 lakhs for the quarter, with cumulative losses since its 2020-21 resolution plan reaching ₹76,691 lakhs. Auditors have raised a 'Material Uncertainty Related to Going Concern' as the company has defaulted on ₹26,186 lakhs in principal and ₹17,105 lakhs in interest. Major plants remain shut down, and the company is currently relying on job work operations due to a severe liquidity crunch.
- Revenue from operations fell to ₹205.14 lakhs in Q3 FY26 from ₹531.24 lakhs in Q2 FY26.
- Net loss for the quarter stood at ₹4,074.91 lakhs, with a total comprehensive loss of ₹14,320.98 lakhs for the nine-month period.
- Total defaults on principal installments and interest reached ₹26,186 lakhs and ₹17,105 lakhs respectively as of December 2025.
- Cumulative losses since the implementation of the resolution plan have reached ₹76,691 lakhs.
- Auditors issued a qualified opinion due to the absence of impairment testing for Property, Plant & Equipment.
SEL Manufacturing Company Limited reported a significant net loss of ₹4,074.91 lakhs for the quarter ended December 31, 2025, as revenue from operations plummeted to ₹205.14 lakhs. The company is facing a severe liquidity crisis, having defaulted on principal and interest payments totaling over ₹43,291 lakhs since late 2023. Auditors have highlighted material uncertainty regarding the company's ability to continue as a going concern, noting cumulative losses of ₹76,691 lakhs. Most manufacturing plants remain shut, and the company has shifted to job work to sustain minimal operations.
- Revenue from operations fell sharply to ₹205.14 lakhs in Q3 FY26 compared to ₹452.19 lakhs in Q3 FY25.
- Net loss for the quarter stood at ₹4,074.91 lakhs, contributing to a massive cumulative loss of ₹76,691 lakhs.
- The company defaulted on ₹26,186 lakhs in installments and ₹17,105 lakhs in interest payments as of December 2025.
- Auditors raised a 'Material Uncertainty Related to Going Concern' due to plant shutdowns and severe financial distress.
- Shareholders have previously approved the initiation of Corporate Insolvency Resolution Process under Section 10 of the IBC.
SEL Manufacturing Company Limited (SELMC) has announced the closure of its trading window starting January 1, 2026, for all designated persons and their relatives. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the company's Q3 FY2025-26 financial results. The window will remain closed until 48 hours after the declaration of the unaudited financial results for the quarter and nine months ended December 31, 2025. The specific date for the board meeting to approve these results will be communicated at a later stage.
- Trading window closure effective from January 1, 2026, for all designated persons.
- Closure is related to the upcoming unaudited financial results for the quarter ended December 31, 2025.
- The window will reopen 48 hours after the official announcement of the financial results.
- The board meeting date for result approval is yet to be determined and announced.
Financial Performance
Revenue Growth by Segment
Total revenue from operations declined by 91.22% YoY from INR 374.27 Cr in FY 2023-24 to INR 32.87 Cr in FY 2024-25. Segment-wise: Yarn revenue fell 93.96% (from INR 312.65 Cr to INR 18.89 Cr), Terry Towel revenue dropped 98.89% (from INR 30.80 Cr to INR 0.34 Cr), and Garments fell 83.44% (from INR 0.09 Cr to INR 0.015 Cr). Conversely, Job Work revenue grew 692.49% from INR 1.54 Cr to INR 12.24 Cr as the company pivoted its business model.
Profitability Margins
Net Profit Margin worsened significantly from -51.55% in FY 2023-24 to -397.70% in FY 2024-25. This 671.48% variance in margin is primarily due to the massive 91% drop in revenue while fixed costs like power and wages remained high under the job work model.
EBITDA Margin
The company reported a sustained operating loss. Return on Capital Employed (ROCE) was -0.13% in FY 2024-25 compared to -0.16% in FY 2023-24, reflecting continued negative core profitability despite a slight 18.75% improvement in the ratio due to reduced net losses.
Capital Expenditure
No new investments were made in subsidiaries or other entities during FY 2024-25. The company is currently constrained by liquidity, preventing capacity enhancement or significant capital outlays.
Credit Rating & Borrowing
Credit rating agencies are reluctant to assign ratings because redundant charges continue to appear in MCA records. The company's name remains on CIBIL and fraud lists despite the implementation of a resolution plan, which has severely restricted access to LC discounting and working capital limits.
Operational Drivers
Raw Materials
The company has shifted to a job work model, which effectively eliminated direct raw material costs (0% of revenue) as the company now processes materials provided by clients rather than purchasing its own.
Import Sources
Not disclosed in available documents due to the shift to a job work model where clients provide materials.
Capacity Expansion
Current capacity enhancement is restrained by systemic risks and liquidity issues. The company operates textile units for Yarn, Terry Towels, and Garments, but some plants were shut down or partially restored during the year.
Raw Material Costs
Raw material costs were eliminated in FY 2024-25 due to the transition to a 100% job work model, intended to mitigate the lack of working capital for procurement.
Manufacturing Efficiency
Efficiency is hampered by potential impairment of outdated machinery and technology. Depreciation is currently charged over a 30-year useful life, but management suggests revaluation is needed to align with market realities.
Strategic Growth
Growth Strategy
The company aims to restore operations by resolving liquidity issues and addressing systemic risks like the CIBIL fraud list status. The strategy focuses on the job work model to maintain some level of capacity utilization without the burden of raw material costs, while seeking to clear redundant charges on MCA records to regain credit access.
Products & Services
Yarn, Terry Towels, Garments, Knitted Cloth, and Textile Job Work services.
Brand Portfolio
SEL
New Products/Services
No new product launches were reported; the focus has shifted from product sales to 'Sale of Services' via job work.
Strategic Alliances
The company was taken over in March 2021 by a Consortium of Arr Ess Industries Private Limited and Leading Edge Commercial FZE following a Resolution Plan approved by NCLT.
External Factors
Industry Trends
The Indian textile industry is the world's second-largest producer, but is currently facing a 'tough situation of liquidity' and manpower shortages. The industry is shifting toward more sophisticated equipment and design capabilities to remain competitive.
Competitive Landscape
The company is losing ground to competitors due to its inability to recruit talented personnel in Marketing, HR, and Operations because of its financial standing.
Competitive Moat
The company lacks a sustainable moat currently due to its negative net worth and 'Corporate Debtor' status. Its previous scale in Yarn and Terry Towels has been neutralized by the inability to fund operations.
Macro Economic Sensitivity
Highly sensitive to manpower availability and liquidity. Manpower shortages in the last financial year forced factory closures across the Indian textile industry.
Geopolitical Risks
The company is subject to global business dynamics across various geographical markets in the textile sector, though specific trade barrier impacts were not detailed.
Regulatory & Governance
Industry Regulations
Operations are governed by the Insolvency and Bankruptcy Code (IBC) 2016 following the Section 7 application by State Bank of India. The company must also comply with SEBI (LODR) Regulations 2015.
Legal Contingencies
The company underwent a Corporate Insolvency Resolution Process (CIRP). While the resolution plan was implemented in 2021, 'redundant charges' still appear in MCA records. No new legal cases were filed against erstwhile promoters during the year that impact current operations.
Risk Analysis
Key Uncertainties
The primary uncertainty is the ability to remove the company from CIBIL/fraud lists; failure to do so will continue to block the 90% of revenue previously derived from owned-material production.
Third Party Dependencies
High dependency on the Consortium (Arr Ess Industries and Leading Edge Commercial FZE) for management and strategic direction following the IBC process.
Technology Obsolescence Risk
High risk of technology obsolescence in closed units; management noted potential impairment losses related to outdated machinery that may no longer be technologically relevant.
Credit & Counterparty Risk
Receivables quality is under pressure as the company loses the confidence of customers and suppliers due to its financial history.