Financial Results — Q4 and FY26
Candour Techtex Limited (formerly Chandni Textiles Engineering Industries Limited) reported its audited standalone financial results for Q4 FY26 and the full year ended 31 March 2026, approved at a Board meeting held on 18 June 2026. The results show a Q4 FY26 net profit of ₹116.71 lakh on revenues of ₹752.61 lakh, a sharp reversal from the Q4 FY25 net loss of ₹74.16 lakh and the Q3 FY26 loss of ₹63.12 lakh. However, on a full-year basis, the company reported a net loss of ₹146.89 lakh against revenues of ₹5,812.93 lakh, compared to a net profit of ₹67.28 lakh on revenues of ₹18,810.18 lakh in FY25 — reflecting the significant revenue contraction driven by a wind-down of the trading division.
Segment Performance
The company's business is organised across four segments: Textile Division, Plastic Division, Trading Division, and Technical Textile Division. In FY26, the Trading Division contributed just ₹2,541.94 lakh in revenues versus ₹16,634.71 lakh in FY25 — the dominant driver of the top-line decline. The Technical Textile Division, which management appears to be positioning as a growth engine, continued to post segment losses (₹444.53 lakh in FY26) due to investment-phase costs. The Plastic Division showed revenue growth (₹1,626 lakh vs ₹732 lakh) and improving trajectory, while the Textile Division remained under pressure.
Balance Sheet Expansion — Preferential Issue
The company's balance sheet saw substantial expansion during FY26. Equity Share Capital increased from ₹1,795.68 lakh to ₹2,441.14 lakh, while Other Equity grew from ₹2,136.19 lakh to ₹10,397.38 lakh — driven by the preferential allotment of 52,54,700 equity shares and 79,72,600 convertible warrants at ₹125 per share/warrant in February 2026. Total assets expanded from ₹8,001 lakh to ₹16,154 lakh. The company raised ₹65.68 crore from equity and ₹99.65 crore from warrants, of which ₹45.28 crore had been deployed by quarter-end with no reported deviation from stated objectives. Brickworks Ratings India Private Limited serves as the monitoring agency for utilisation.
The Big Story — MOA Expansion into Defence and Aerospace
The most strategically significant development from the board meeting is the approval (subject to shareholder ratification at an EGM scheduled for 22 July 2026) of an amendment to the Main Object Clause of the Memorandum of Association. The Board has approved insertion of two new sub-clauses that fundamentally redefine the company's addressable market:
Sub-clause 10 covers Naval and Defence Shipbuilding: designing, manufacturing, building, assembling, commissioning, and delivering naval vessels, warships, submarines, patrol boats, and defence crafts for the Indian Navy, Coast Guard, and other defence/governmental authorities — both domestic and international. The scope includes integration of military hardware, weapons systems, and surveillance equipment.
Sub-clause 11 covers Aerospace Engineering: designing, developing, engineering, manufacturing, fabricating, machining, assembling, integrating, testing, validating, repairing, refurbishing, and supplying all kinds of aerospace engineering products, aviation products, precision-engineered components, UAV systems, and providing related technical, engineering, consultancy, maintenance, and support services.
If approved at the EGM, these additions position Candour Techtex to pursue opportunities in two of India's most strategically important and capital-intensive manufacturing sectors — sectors that the government is actively promoting through defence indigenisation mandates and the PLI scheme for drones and aerospace.
