Harish Textile Engineers NCD default: key dates 2026

Stock snapshot and why the disclosure matters

HARISH stock was at ₹65.47 as of 24 Aug, 2026, with a reported move of ₹2.85 (4.55%). The latest disclosures from Harish Textile Engineers Ltd focus on delays and defaults in redeeming its 7% unlisted non-convertible debentures (NCDs). These updates matter because they quantify overdue principal, clarify interest servicing status, and set out the company’s stated repayment timeline. The issue relates to older NCD series where redemption dates have already passed, and the company has cited financial constraints.

What the company said about the default

Harish Textile Engineers stated it has defaulted on the principal amount and interest payments for its 7% Unlisted NCDs due to ongoing financial constraints. The company also acknowledged a delay/default in redemption and interest payment for its unlisted secured NCDs under Old Series III and Series IV. It disclosed that total pending principal redemption for Series III and Series IV stands at ₹2.1151 crore. The company said it is engaging with debenture holders to arrange funds and will keep the BSE informed of material developments.

Meeting with debenture holders: what happened on 6 August 2026

The company held a meeting with holders of its 7% Unlisted, Secured, Unrated, Redeemable NCDs (Old Series III and Series IV) on August 6, 2026. The meeting was convened by Axis Trustee Services Limited, which is the debenture trustee. According to the disclosure, the discussion focused on delays in redemption and interest payments. Clarifications were provided during the meeting, and both sides agreed to hold further internal discussions to reach an amicable and mutually accepted solution. The company indicated it would continue to update the BSE on any material developments.

Amounts overdue and series-wise position

The company disclosed that the principal redemption pending across Series III and Series IV is ₹2.1151 crore (₹2,11,50,900). Series III was partially redeemed, but ₹0.6472 crore has remained in default since October 7, 2025. Series IV saw a complete default on redemption, with ₹1.4679 crore due since December 20, 2025. The company also stated that Series I (₹0.93 crore) and Series II (₹1.13 crore) were redeemed on their respective due dates.

Interest payment status and the current default period

Harish Textile Engineers stated that “all outstanding interest” was paid up to June 30, 2026. It also disclosed that interest accruing from July 1, 2026 onwards remains unpaid, implying the current default period for interest runs from that date. Separately, the company had announced on April 4, 2026 that it made interest payments covering the period up to December 31, 2025, including ₹7.42 lakh for April-September 2025 and ₹3.73 lakh for October-December 2025. The same disclosure also noted that interest for January 1, 2026 to March 31, 2026 remained outstanding at that time.

Repayment commitment and key dates disclosed

Management has formally committed to clearing the entire outstanding principal and all accrued interest by July 31, 2026. The disclosure date referenced for the default update is July 31, 2026. Original default dates were stated as October 7, 2025 (Series III) and December 20, 2025 (Series IV). The company also noted that due dates were extended multiple times as per applicable provisions and transaction documents.

Background: earlier extensions and the Series IV instrument terms

In an earlier board meeting held on August 21, 2025, the company approved an extension of due dates for redemption of 7% (non-cumulative) 64,720 NCDs referred to as Old Series-III Debentures, after partial redemption of 6,310 on the due date. It stated that after receiving no-objection certificates from the majority of debenture holders, it executed a Third Supplementary Trust Deed to extend redemption dates of Old Series-III Debentures to October 7, 2025.

For Series IV, Harish Textile Engineers informed BSE about its inability to redeem NCDs worth ₹1.47 crore due on December 20, 2025. The company disclosed that Series-IV NCDs were issued on September 21, 2022 with a three-year tenure at a 7% interest rate, payable half-yearly on September 30 and March 31. It also stated it was unable to service interest on these NCDs from April 1, 2025 till December 20, 2025.

Capital-raising plan: preferential allotment details

Alongside debt-related updates, Harish Textile Engineers said shareholders approved a special resolution to issue equity shares on a preferential basis. The preferential issue is structured to raise up to ₹13.59 crore. The board approved the proposal on February 10, 2026. The disclosure also specified the plan involves 21,23,800 equity shares at ₹64 each.

Key disclosed numbers at a glance

Market impact

The disclosures indicate that some interest has been serviced at different points, but principal redemption for Series III and Series IV remains overdue beyond the original due dates. The quantified impact cited by the company is the defaulted principal of ₹2.1151 crore plus accrued interest from July 1, 2026. The update also places focus on engagement with debenture holders and the trustee-led meeting process as the company attempts to arrange funds. For investors tracking credit events, the timeline matters because the company has already recorded original default dates in 2025 and later provided a repayment commitment date of July 31, 2026.

Analysis: what the disclosures signal

Two elements stand out from the disclosures. First, the company has provided a clear series-wise split of overdue principal and has stated an interest-paid-through date of June 30, 2026, which helps debenture holders reconcile cash flows already received versus pending dues. Second, the company is pairing the debt update with a shareholder-approved preferential allotment plan to raise up to ₹13.59 crore, which is materially larger than the ₹2.1151 crore overdue principal amount disclosed for Series III and IV. The meeting held on August 6, 2026 and the commitment date cited for repayment show that discussions with holders are ongoing, but the company has not stated in the disclosure that the dues have been cleared.

Conclusion

Harish Textile Engineers has acknowledged delays and defaults in redeeming its 7% unlisted NCDs under Old Series III and Series IV, with ₹2.1151 crore principal pending and interest stated as paid up to June 30, 2026. The company has recorded original default dates in October and December 2025 and has indicated a commitment to clear the outstanding principal and accrued interest by July 31, 2026. It has also held a trustee-convened meeting with debenture holders and said it will update the BSE on material developments, while shareholders have approved a preferential issue to raise up to ₹13.59 crore.