Vardhman Polytex Limited Stock Analysis

Real estate segment generated Rs 1,926 lakh profit in 9M FY26, providing critical support as the company monetizes Bathinda and Ludhiana land parcels following regulatory approvals from Bathinda Development Authority / Inventory reduction of Rs 3,496 lakh in 9M FY26 (vs Rs 3,403 lakh prior year) improved working capital efficiency and freed up cash during the distressed period / Finance costs reduced 21% YoY to Rs 842 lakh in 9M FY26 from Rs 1,063 lakh, reflecting successful debt restructuring with Phoenix ARC under assignment agreements / Employee benefit expenses declined 42% YoY in 9M FY26 to Rs 1,221 lakh from Rs 2,097 lakh, demonstrating aggressive cost rationalization in response to revenue contraction

Textile core business posting segment losses of Rs 404 lakh in 9M FY26 (vs loss of Rs 972 lakh prior year) with Q3 revenue down 33% YoY, indicating fundamental business model failure in primary operations / Net worth fully eroded at negative Rs 26,649 lakh with paid-up capital of Rs 4,589 lakh, creating technical insolvency risk and limiting access to growth capital or refinancing options / Debt repayment deadline with Phoenix ARC scheduled for September 2026 (just 7 months away) creates acute refinancing pressure, with no clarity on post-deadline arrangements if land monetization delays / Going concern assumption despite eroded net worth introduces significant accounting uncertainty, as company survival depends entirely on successful real estate monetization rather than operational cash flows / Revenue concentration risk exposed as textile operations show no signs of recovery, with Q3 posting near-zero profit (Rs 14.5 lakh) only due to land reclassification accounting gains / Power and fuel costs remain elevated at Rs 1,377 lakh (8% of 9M revenue), compressing margins in an already loss-making textile operation with limited pricing power