Shlokka Dyes acquires Equinox business for Rs 3.30 crore

Shlokka Dyes Limited acquired promoter Vaibhav Pravinchandra Shah's entire Equinox Impex business undertaking and the EQUINOX trademark for Rs 3.30 crore, effective August 1, 2026. The July 31, 2026 Business Transfer Agreement assigned Rs 1.857478291 crore to the undertaking and Rs 1.442521709 crore to the trademark.

What did Shlokka Dyes acquire from its promoter?

Shlokka Dyes acquired the entire Equinox Impex undertaking on a going-concern slump-sale basis from Vaibhav Pravinchandra Shah, its managing director and promoter. The Business Transfer Agreement was entered into on July 31, 2026, approved by the board on the same date, and took effect on August 1, 2026.

Equinox Impex was a sole proprietorship of Shah, making the transaction a related-party acquisition under Section 2(76) of the Companies Act, 2013. Shlokka Dyes said it intimated BSE Limited about the board-approved transaction under Regulation 30 of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015.

The acquisition covered both the operating undertaking and the EQUINOX trademark. The auditor's review report says the purchase-price accounting included allocation to net identifiable assets, the trademark as an intangible asset, and any resulting goodwill or capital reserve in accordance with applicable Accounting Standards.

How was the Rs 3.30 crore purchase price divided?

Shlokka Dyes allocated Rs 1.857478291 crore of the aggregate Rs 3.30 crore consideration to the Equinox Impex business undertaking and Rs 1.442521709 crore to the EQUINOX trademark. The trademark allocation was recorded separately from the operating undertaking in the transaction disclosure.

The filing provides the consideration and allocation but does not disclose Equinox Impex's earlier revenue, profit, asset valuation methodology or separate cash flows. The disclosed figures therefore establish the price and accounting components of the August 1, 2026 transfer, rather than the acquired undertaking's standalone operating record.

How did the acquisition appear in Shlokka Dyes' balance sheet?

Shlokka Dyes reported Rs 1.4425 crore of intangible assets at September 30, 2026, while no intangible-assets balance was shown at March 31, 2026. The September balance closely corresponds with the Rs 1.442521709 crore consideration assigned to the EQUINOX trademark.

Total assets rose to Rs 162.7512 crore at September 30, 2026 from Rs 131.2752 crore at March 31, 2026. Over the same period, inventories increased to Rs 55.9072 crore from Rs 29.6269 crore, while trade receivables declined to Rs 53.4199 crore from Rs 54.0784 crore.

Current liabilities increased to Rs 66.5361 crore from Rs 35.4079 crore during the half year containing the acquisition's effective date. Short-term borrowings rose to Rs 25.7997 crore from Rs 16.2752 crore and trade payables rose to Rs 27.2717 crore from Rs 14.6171 crore, although the filing does not attribute those changes specifically to Equinox Impex.

What changed in Shlokka Dyes' half-year results?

Shlokka Dyes reported revenue from operations of Rs 71.6266 crore and profit after tax of Rs 5.2105 crore for the half year ended September 30, 2026. Revenue was Rs 50.5896 crore in the half year ended March 31, 2026, while profit after tax was Rs 3.4826 crore in that preceding half year.

Compared with the half year ended September 30, 2025, revenue from operations increased from Rs 31.3517 crore and profit after tax increased from Rs 1.477 crore. Profit before tax reached Rs 6.3083 crore in the September 2026 half year, compared with Rs 1.7828 crore a year earlier.

Cost of materials consumed was Rs 77.5348 crore in the September 2026 half year, against Rs 45.404 crore in the March 2026 half year. Changes in inventories were negative Rs 20.7815 crore, compared with negative Rs 5.7955 crore in the preceding half year, a reported movement that reduced total expenses in both periods.

Did an accounting change affect Shlokka Dyes' reported profit?

Yes. Shlokka Dyes changed the depreciation method for property, plant and equipment from the written-down-value method to the straight-line method with effect from April 1, 2026. Management cited a revised expected pattern of consumption of future economic benefits from those assets.

The auditor said the change reduced depreciation for the half year ended September 30, 2026 by Rs 89.76093 lakh and increased profit before tax by the same amount. Reported depreciation and amortisation expense was Rs 61.33 lakh for the period, compared with Rs 1.6685 crore for the half year ended September 30, 2025.

Patel & Panchal, Chartered Accountants, issued its limited-review report on November 3, 2026 and highlighted both the Rs 3.30 crore related-party acquisition and the depreciation-method change as emphasis-of-matter items. The auditor said its conclusion was not modified in respect of either matter and noted that a limited review is narrower in scope than an audit.

Conclusion

The August 1, 2026 transfer brought Equinox Impex and the EQUINOX trademark into Shlokka Dyes through a Rs 3.30 crore related-party acquisition. The separate Rs 1.442521709 crore trademark allocation was reflected by Rs 1.4425 crore of intangible assets at September 30, while the company reported Rs 71.6266 crore of half-year revenue and Rs 5.2105 crore of profit after tax.

Next, investors can watch the proposed preferential issue of up to 31 lakh equity shares at Rs 35 each, which could raise up to Rs 10.85 crore from 23 public investors. The filing also says each proposed warrant may be converted into one equity share within a maximum 18 months from allotment, subject to the holder's exercise decision and the stated payment terms.