Banswara Syntex to Acquire Stake in CGE II Hybrid Energy for Rs 8.28 Crore

Banswara Syntex Limited held its Board Meeting on Friday, 31st July 2026, at its registered office in Banswara, Rajasthan, where the company approved its unaudited financial results for the quarter ended 30th June 2026 alongside two other key decisions — a renewable energy investment and a leadership appointment in its compliance team.

Q1 FY27 Financial Results: A Sharp Sequential Decline

On a standalone basis, Banswara Syntex reported revenue from operations of Rs. 31,578.98 lakh for the quarter ended June 2026, down from Rs. 36,575.27 lakh in the preceding quarter (Q4 FY26), though still ahead of Rs. 30,581.04 lakh in the same quarter last year.

The bigger story is on the profit line. Profit before tax fell steeply to Rs. 590.21 lakh for the quarter, compared to Rs. 2,233.92 lakh in the previous quarter — a decline of roughly 74% sequentially. Net profit after tax came in at Rs. 440.75 lakh, versus Rs. 959.78 lakh in Q4 FY26. That said, the company has swung back into profit compared to the year-ago quarter, when it posted a loss of Rs. 141.32 lakh (before exceptional items) and Rs. 186.43 lakh loss before tax.

Earnings per share for the quarter stood at Rs. 1.29 (basic and diluted), down from Rs. 2.80 in the previous quarter but a clear improvement from the loss of Rs. 0.41 per share a year earlier.

On a consolidated basis — which includes subsidiary Banswara Brands Private Limited and joint venture Tesca Textile & Seat Components (India) Private Limited — total income came in at Rs. 32,242.87 lakh, with profit after tax of Rs. 461.21 lakh and EPS of Rs. 1.35 for the quarter. The joint venture contributed a profit share of Rs. 93.44 lakh for the period.

The results were reviewed by the company’s statutory auditors, K G Somani & Co LLP, who issued limited review reports for both standalone and consolidated numbers without any qualification.

Board Approves Renewable Energy Investment

In a notable strategic move, the Board approved the execution of a Power Consumption Agreement with CGE II Hybrid Energy Private Limited, along with a Share Purchase and Shareholders’ Agreement involving CGE II Hybrid Energy and Continuum Green Energy Limited.

The purpose: to secure 8.70 MW of renewable power — described as a “Wind Solar Hybrid Project” — for the company’s manufacturing plants at Thikariya and Dahod Road in Banswara. The power will qualify under the captive consumer framework laid out in the Electricity Acts/Rules, and Banswara Syntex will acquire approximately 1.68% equity shareholding in CGE II Hybrid Energy, comprising 82,82,576 equity shares at a total cost of Rs. 8,28,25,760.

CGE II Hybrid Energy Private Limited, incorporated in December 2021, is an independent power producer developing renewable energy projects across India, selling power to commercial and industrial consumers under a group captive model. The entity reported a turnover of Rs. 65.57 crore for FY26, its first year of meaningful revenue after two years of nil turnover.

The transaction is subject to customary closing conditions and is expected to complete on or before 15th August 2026.

This move fits into a broader pattern among Indian textile manufacturers of locking in captive renewable power to manage input costs and sustainability commitments — power and fuel costs are a meaningful line item for Banswara Syntex, coming in at Rs. 3,542.19 lakh for the quarter.

New Company Secretary and Compliance Officer Appointed

The Board also approved the appointment of Ms. Monika Bohara as Company Secretary cum Compliance Officer, a Key Managerial Personnel role, effective 3rd August 2026. The appointment followed a recommendation from the Nomination and Remuneration Committee.

Ms. Bohara is a qualified Company Secretary and an Associate Member of the Institute of Company Secretaries of India, with more than six years of professional experience. She holds a Bachelor of Commerce from the University of Rajasthan and a Bachelor of Laws from Dr. Bhimrao Ambedkar Law University, Jaipur. She previously worked with Rex Pipes and Cables Industries Limited and Bhanu Bhargava & Associates, Chartered Accountants, and trained with Polycon International Limited.

Trading Window Closure

In line with SEBI’s insider trading regulations, the company noted that its Trading Window will reopen on Monday, 3rd August 2026, for directors, key managerial personnel, designated persons, connected persons, and their relatives.