Harish Textile Engineers: ₹13.59 Cr Issue, FY26 Results

Preferential issue approved by shareholders

Harish Textile Engineers Limited said its shareholders have 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 disclosure comes at a time when the company has also reported ongoing delays in redeeming certain non-convertible debentures (NCDs). Alongside the fundraise plan, the company has outlined legal and dispute-related developments. These updates are relevant for investors tracking both capital-raising activity and credit-related disclosures.

Why the fundraise matters right now

A preferential issue can provide fresh capital, but the company’s recent disclosures show it is also managing repayment timelines on debt instruments. Harish Textile Engineers has acknowledged delays in redemption of its 7% unlisted NCDs. Management has committed to clear outstanding principal and accrued interest by July 31, 2026. The company has also said it is engaging with debenture holders and seeking funds for principal repayment, citing financial constraints. In this context, the preferential issue approval sits alongside the company’s efforts to address debt-related obligations.

NCD redemption delay and repayment commitment

Harish Textile Engineers Ltd. acknowledged a delay/default in the redemption and interest payment of its unlisted secured NCDs from Old Series III and Series IV. It stated that all outstanding interest was paid up to June 30, 2026. However, the principal redemption of ₹2.1151 crore remains pending, with the company citing ongoing financial constraints. The instrument referenced is a 7% unlisted, secured, unrated NCD (Old Series III and Series IV). Management has formally committed to clearing the entire outstanding principal and all accrued interest by July 31, 2026.

Series-wise status: what is redeemed and what is pending

The company had issued NCDs worth ₹4.232 crore across four series. It disclosed that Series I (₹0.93 crore) and Series II (₹1.13 crore) were redeemed on their respective due dates. Series III was partially redeemed, with ₹0.6472 crore remaining in default since October 7, 2025. Series IV saw a complete default on redemption, with ₹1.4679 crore due since December 20, 2025. For debenture holders, the disclosures indicate that while some interest has been serviced at different points, principal redemption for Series III and Series IV is still overdue beyond original due dates.

Interest servicing: payments made and defaults reported

On April 4, 2026, the company said it had made interest payments covering the period up to December 31, 2025. This included ₹0.0742 crore for April to September 2025 and ₹0.0373 crore for October to December 2025, totaling ₹0.1115 crore for April to December 2025. It also reported that interest payments for January 1, 2026 to March 31, 2026 remained outstanding at that time. Separately, Harish Textile Engineers reported a fresh default on its NCDs, failing to pay ₹0.0365 crore in interest for the January to March 2026 period, due on April 7, 2026. It disclosed that of ₹0.0738 crore interest due for October 2025 to March 2026, it had previously paid ₹0.0373 crore for October to December 2025, leaving the balance unpaid. The company stated that the then-current default stood at ₹2.11 crore in principal and ₹0.04 crore in interest.

Debenture-holder meetings and trustee involvement

Harish Textile Engineers held a virtual meeting of debenture holders on December 22, 2025. The meeting was facilitated by Axis Trustee Services Limited, the debenture trustee. The agenda included discussion of a ₹1.47 crore Series IV NCD default and a ₹0.65 crore Series III partial default, as disclosed by the company.

The company also informed that its debenture trustee, Axis Trustee Services Limited, convened another meeting of debenture holders scheduled for July 2, 2026 at 3:00 PM via Microsoft Teams. The stated purpose was to discuss issues arising from a default and determine the future course of action regarding the outstanding principal amount of the 7% unlisted, secured, unrated, redeemable NCDs (Old Series III and Series IV). The trustee also requested the presence of a company representative.

Legal and dispute-related developments disclosed

In November 2025, Electrosil 14 Systems issued a notice alleging default on NCDs and dishonored cheques. The amount in question was ₹0.0925 crore, with NCDs carrying a 7% interest rate, and the notice demanded payment within 15 days. Harish Textile Engineers acknowledged receipt of the notice, said the matter was under legal review, and maintained that at that stage there was no material impact on financial or operational activities.

Separately, conciliation proceedings with M/s Deep Industries concluded in February 2026, and the matter has moved to arbitration. The company also disclosed an update in a creditor dispute case at NCLT Mumbai involving M/s Kamlesh Corporation. NCLT Mumbai issued directions granting M/s Kamlesh Corporation 15 days to complete service and requiring the company to respond within 7 days of receipt, with the hearing rescheduled to January 5, 2026. The company stated it saw no material impact on operations.

FY26 audited results and qualified audit opinion

Harish Textile Engineers announced its audited financial results for fiscal year 2026. It posted a profit of ₹5.54 crore on revenues of ₹138.49 crore. The financial statements were issued with a qualified opinion by the statutory auditors.

The company disclosed that the qualified audit report flagged concerns including default in redemption of NCDs, an unvalidated interest liability for MSME vendors, and the impact of non-reversal of input tax credit. These points were presented as key issues in the qualified opinion, alongside the company’s ongoing disclosures on NCD redemption delays.

Market indicators investors are tracking

As of June 29, 2026, Harish Textile Engineers’ share price was ₹65.3. Disclosures around defaults, trustee-led meetings, and a stated repayment commitment date are likely to remain central reference points for market participants monitoring the stock. The company has also communicated that it has paid outstanding interest up to June 30, 2026, while principal redemption of ₹2.1151 crore remains pending. Investors will also watch for updates linked to the preferential issue process and any further communication to debenture holders.

Key facts at a glance

Conclusion

Harish Textile Engineers has shareholder approval to raise up to ₹13.59 crore through a preferential issue, while continuing to disclose delayed redemptions on its 7% unlisted NCDs. The company has stated that interest is paid up to June 30, 2026, with ₹2.1151 crore principal still pending for Series III and Series IV, and a management commitment to clear dues by July 31, 2026. It has also provided updates on legal notices, arbitration progression, and an NCLT matter, and reported FY26 results with a qualified audit opinion. The next confirmed milestone on the debt side is the debenture holders meeting scheduled for July 2, 2026, alongside any subsequent updates on funding and repayments.