Jindal Poly Films Withdraws Global Non Woven Scheme Application

Jindal Poly Films Limited withdrew its stock-exchange application for the proposed arrangement with Global Non Woven Limited on April 10, 2026, citing procedural delays, geopolitical uncertainty, evolving market conditions and implementation demands. Jindal Poly Films said the withdrawal had no impact on financial position or performance, but required restatement of September 2025 comparatives.

Why did Jindal Poly Films withdraw the Global Non Woven scheme?

Jindal Poly Films withdrew the application because of procedural delays, geopolitical uncertainties, evolving business and market conditions, and the significant time, cost and regulatory processes required to implement the scheme. The board considered and approved the withdrawal on April 10, 2026, ending an application under Regulation 37 of the Securities and Exchange Board of India, or SEBI, Listing Obligations and Disclosure Requirements Regulations, 2015.

The application had sought a no-objection certificate from the stock exchange for the Scheme of Arrangement involving Jindal Poly Films and Global Non Woven Limited. The November 14, 2026 filing does not quantify implementation costs, say when the application was filed, or set out an alternative restructuring plan. It describes the step as withdrawal of an application, rather than reversal of a completed demerger.

How did the withdrawal change Jindal Poly Films' reported results?

Jindal Poly Films reversed the proposed demerger's discontinued-operations treatment in the quarter ended March 31, 2026, and restated the quarter and half-year ended September 30, 2025. The company said the withdrawal meant the demerger impact previously shown as discontinued operations in those September 2025 results had to be reversed.

Nonwoven fabrics are consequently presented in continuing operations in the reported segment information. In the quarter ended September 30, 2026, the segment recorded revenue of Rs 226.1814 crore and profit before finance cost and tax of Rs 35.0886 crore, compared with revenue of Rs 172.9779 crore and profit of Rs 10.5792 crore a year earlier.

Nonwoven fabrics revenue increased by Rs 53.2035 crore year on year, while its segment profit increased by Rs 24.5094 crore. Packaging films revenue rose by Rs 85.4362 crore, and its loss before finance cost and tax narrowed by Rs 77.1033 crore. The filing does not provide a line-by-line reconciliation of the restatement beyond confirming that the discontinued-operations presentation was reversed.

Did the scheme withdrawal affect Jindal Poly Films' balance sheet?

Jindal Poly Films said the withdrawal had no impact on its financial position or financial performance. Consolidated total assets were Rs 8,521.4691 crore at September 30, 2026, compared with Rs 8,725.6102 crore at March 31, 2026, while total equity increased to Rs 3,084.1075 crore from Rs 3,043.125 crore.

Non-current borrowings fell to Rs 2,993.4528 crore at September 30, 2026 from Rs 3,201.1714 crore six months earlier, and current borrowings declined to Rs 738.2145 crore from Rs 801.3923 crore. The filing reports these movements in consolidated balances but does not attribute them to either the proposed scheme or its withdrawal.

Cash and cash equivalents were Rs 31.8824 crore at September 30, 2026, versus Rs 45.7922 crore at March 31, 2026. Current investments declined to Rs 2,122.7832 crore from Rs 2,643.943 crore over the same period. These balance-sheet changes occurred during the half year, whereas the company's no-impact statement specifically addresses the scheme withdrawal.

What operating and unresolved matters did Jindal Poly Films disclose?

Jindal Poly Films reported consolidated continuing-operations revenue of Rs 738.0655 crore for the quarter ended September 30, 2026, up from Rs 683.3692 crore in the September 2025 quarter. Packaging films generated Rs 430.6433 crore of revenue and nonwoven fabrics generated Rs 226.1814 crore, while inter-segment revenue was eliminated by Rs 6.732 crore.

A subsidiary had borrowings of Rs 292 crore from Jindal Poly Films at September 30, 2026, which its investor shareholder said could breach a reserved matter in a shareholders' agreement dated March 16, 2022. Jindal Poly Films and the subsidiary received a notice of arbitration on October 16, 2026. The subsidiary continues to carry the loan pending resolution, and the company said necessary action, if any, would follow the arbitration outcome.

The filing also records inventory verification work after a May 21, 2025 fire at a subsidiary's Nashik manufacturing plant. At September 30, 2026, management had recognised inventories with a carrying amount of Rs 277.7365 crore while physical verification remained pending. An independent firm of chartered accountants verified a substantial quantity, but used estimation techniques in specified cases because usable waste inventory was stored in mixed condition during rebuilding work.

Conclusion

The withdrawal leaves Global Non Woven within the continuing-operations presentation rather than progressing through the proposed arrangement process. The immediate reported accounting effect was the reversal of discontinued-operations treatment and restatement of September 2025 comparatives, while Jindal Poly Films stated that the decision itself did not affect its financial position or performance.

Readers should watch the outcome of the October 16, 2026 arbitration notice concerning the subsidiary's Rs 292 crore borrowing and completion of the Nashik inventory verification for the Rs 277.7365 crore carrying amount. Jindal Poly Films did not disclose a replacement scheme, renewed application timetable or other restructuring plan in the November 14, 2026 results.