Vikas Ecotech reflects 38.035 crore share cancellation

Vikas Ecotech Limited reflected the cancellation of 38.035 crore shares and Rs 121.71 crore of securities premium in its standalone results for the quarter and half year ended September 30, 2026, although National Stock Exchange of India Limited and National Company Law Tribunal approvals, plus a Securities and Exchange Board of India outcome, remained pending.

Why did Vikas Ecotech cancel 38.035 crore shares?

Vikas Ecotech proposed the cancellation after reversing its acquisition of 100% of Shamli Steels Private Limited through a share-swap arrangement. The original transaction involved a preferential allotment of 38,03,50,000 equity shares with a face value of Rs 1 each, issued at Rs 4.20 each, without cash consideration, according to Note 3 to the September 2026 standalone results.

Vikas Ecotech and the other parties entered into a Termination-cum-Settlement Agreement dated January 29, 2025 to reverse the transaction. Under that agreement, the entire Shamli Steels investment was transferred back to its original shareholders and Shamli Steels ceased to be a subsidiary, making the proposed extinguishment an accounting consequence of the reversed share swap rather than a new September-quarter transaction.

The proposal also includes cancellation of Rs 121.71 crore of securities premium. Vikas Ecotech said it accounted for the proposed reduction in the financial statements for the year ended March 31, 2025, and its September 30, 2026 results therefore reflect the consequential reduction in paid-up share capital and securities premium.

Which approvals are pending for Vikas Ecotech’s reduction?

Vikas Ecotech said approvals from National Stock Exchange of India Limited, or NSE, and the Hon’ble National Company Law Tribunal, or NCLT, remained awaited at September 30, 2026. The auditor also said the Regulation 37 matter under the Securities and Exchange Board of India, or SEBI, Listing Obligations and Disclosure Requirements Regulations had been referred to SEBI, where the outcome was pending at the reporting date.

The filing contains different statements on BSE Limited’s status. The auditor’s November 14, 2026 limited-review report says BSE approval was received on July 30, 2026, while Vikas Ecotech’s Note 3 says approvals from BSE, NSE and NCLT were awaited as of September 30, 2026. Vikas Ecotech did not reconcile the difference in the supplied filing.

The auditor issued an unmodified limited-review conclusion but drew attention to the accounting treatment. Its report says Vikas Ecotech had reflected the share-capital and securities-premium reductions in financial statements for the years ended March 31, 2025 and March 31, 2026, as well as the September 30, 2026 statement, while NSE and NCLT approvals were still awaited.

How is Vikas Ecotech showing the reduction in its accounts?

Vikas Ecotech’s standalone balance sheet showed paid-up equity share capital of Rs 138.8356 crore at September 30, 2026, unchanged from March 31, 2026. Other equity was Rs 252.2612 crore at September 30, compared with Rs 251.7148 crore at March 31, while the company said it used the reduced weighted-average share count to calculate basic and diluted earnings per share under Indian Accounting Standard 34.

The capital-reduction accounting is separate from the operating income statement. Revenue from operations for the half year ended September 30, 2026 rose to Rs 145.682 crore from Rs 129.5296 crore in the comparable 2025 period, but profit before tax fell to Rs 1.2054 crore from Rs 3.5342 crore and profit after tax declined to Rs 0.5614 crore from Rs 2.4649 crore.

In the quarter ended September 30, 2026, Vikas Ecotech reported revenue from operations of Rs 59.5696 crore, compared with Rs 86.1124 crore in the June 2026 quarter and Rs 45.9238 crore a year earlier. Quarterly profit after tax was Rs 0.5254 crore, against Rs 0.036 crore in June 2026 and Rs 0.7679 crore in the September 2025 quarter.

What did Vikas Ecotech’s segments report for the half year?

Vikas Ecotech’s Chemical, Polymers & Special Additives segment generated Rs 99.8852 crore of revenue in the half year ended September 30, 2026, up from Rs 67.3328 crore a year earlier. Its segment result before tax and interest was Rs 8.3733 crore, compared with Rs 9.8143 crore in the comparable half year, indicating higher revenue alongside a lower reported segment result.

The Infra & Energy segment recorded half-year revenue of Rs 45.7968 crore, down from Rs 62.1968 crore in the prior-year period. Its segment result before tax and interest fell to Rs 0.2295 crore from Rs 1.4372 crore, while the two segments together produced Rs 145.682 crore of reported revenue.

Vikas Ecotech reported that one customer in the Chemical, Polymers & Special Additives segment accounted for Rs 14.6221 crore of half-year revenue ending September 2026. For the comparable half year ending September 2025, one customer in the Infra & Energy segment represented Rs 13.1641 crore of revenue, showing that the disclosed major-customer concentration shifted between segments.

What other unresolved matters did Vikas Ecotech disclose?

Vikas Ecotech disclosed Income Tax Department demand notices aggregating Rs 17.71 crore during financial year 2025-26 for various assessment years. It said it had appealed demands arising from assessment orders and was pursuing rectification applications for certain other demands; management said no provision had been recognised because it expected no material liability, while the final outcome remains with tax and appellate authorities.

Vikas Ecotech also reported Rs 6.43 lakh of unpaid or unclaimed dividend that had become due for transfer to the Investor Education and Protection Fund after the seven-year statutory period. The company attributed the delay to technical issues on the Ministry of Corporate Affairs portal and said it was taking steps to complete the filing and transfer at the earliest.

For the September 2026 quarter, Vikas Ecotech reported total income of Rs 61.1259 crore and total expenses of Rs 60.5237 crore, resulting in profit before tax of Rs 0.6022 crore. The board approved the unaudited standalone and consolidated results on November 14, 2026, after audit committee review, and the auditor highlighted the capital reduction, tax demands and dividend-transfer matter without modifying its conclusion.

Conclusion

Vikas Ecotech has reflected the reversal of the Shamli Steels share-swap transaction in its accounts through the proposed cancellation of 38.035 crore shares and Rs 121.71 crore of securities premium. That accounting treatment accompanied half-year revenue growth to Rs 145.682 crore, while profit after tax fell to Rs 0.5614 crore from Rs 2.4649 crore a year earlier.

The next disclosed developments are decisions on NSE and NCLT approvals and SEBI’s Regulation 37 process. Investors can also watch for clarification of the BSE-status difference between the July 30, 2026 auditor statement and Note 3, progress on the Rs 17.71 crore tax demands, and completion of the Rs 6.43 lakh Investor Education and Protection Fund transfer.