XPXpro India590013Board decision

Board approves furnishing of corporate guarantee of up to AED 83 million for subsidiary; Q2 results also approved

Board approved a corporate guarantee of up to AED 83 million (~Rs 215 crore) for subsidiary XDF's AED 63 million term loan and AED 20 million cash credit with Emirates Development Bank.

By ScoutQuest · Tue 3 Nov 2026, 6:33 PM IST · 4 min read

Corporate Guarantee Approved

up to AED 83 million (~Rs 215 crore) for subsidiary XDF's facilities with Emirates Development Bank

Q2 Profit

952.15 for the quarter, against 586.44 a year earlier

Half-Year Profit

1930.76, against 1016.64

Corporate guarantee for the overseas subsidiary

• The Board approved furnishing a corporate guarantee of up to AED 83 million (approximately INR 215 Crores) in favour of Emirates Development Bank P.J.S.C. (EDB).
• The guarantee secures repayment by Xpro Dielectric Films FZ-LLC (XDF), a subsidiary of the company, of the principal and interest payable under an AED 63 million term facility and an AED 20 million cash credit facility.
• The AED 63 million term facility is proposed to be utilised for refinancing and repayment of XDF's existing Euro-denominated facility availed from AKA Ausfuhrkredit-Gesellschaft mbH (AKA).
• The guarantee of EUR 23.72 million provided earlier to AKA would stand cancelled subsequently, upon completion of necessary documentation and formalities.

September quarter and half-year results (standalone, unaudited)

• Revenue from operations was 17669.38 for the quarter, against 11990.94 in the same quarter a year earlier; for the half year it was 35111.46, against 26481.14.
• Total income for the quarter was 18148.86 and total expenses 16869.79, leaving profit before tax of 1279.07.
• Profit for the period was 952.15 for the quarter, against 586.44 a year earlier; for the half year it was 1930.76, against 1016.64.
• Earnings per share (face value INR 10 each, not annualised) was 4.06 for the quarter and 8.23 for the half year, on a basic and diluted basis.
• The figures are stated in INR lakh, as printed in the results table.

Other decisions taken at the same board meeting

• Sri K Balakrishnan (DIN: 00034031) was re-appointed as a Non-Executive Independent Director for a second term of five consecutive years, from May 25, 2027 to May 24, 2032.
• The Board approved the Audit Committee's recommendation to appoint BSRS & Co LLP, Chartered Accountants, as Statutory Auditors for a term of five consecutive years, from the conclusion of the 30th Annual General Meeting to be held during FY 2027-28 till the conclusion of the 35th Annual General Meeting to be held during FY 2032-33, to be placed before shareholders for approval.
• Current Statutory Auditors Walker Chandiok & Co LLP will cease to hold office on the conclusion of the 30th Annual General Meeting.
• The Board approved issue of the letter of appointment to Sri Girish Behal, to be designated Managing Director & Chief Executive Officer with effect from January 1, 2027; shareholder approval for his appointment as Managing Director was accorded at the 29th Annual General Meeting held on July 20, 2026.

From the notes to the results

• The company recognised exchange fluctuation loss of INR 72.83 lacs and INR 88.41 lacs for the six months and the quarter ended September 30, 2026, respectively, on Euro-denominated export credit insurance-backed supplier credits for capital goods repayable in instalments over ten years.
• The unutilised portion of the net proceeds from the issue and conversion of warrants into equity shares in earlier years, INR 6429.39 lacs, was held in bank deposits of the company and its subsidiary.
• A dividend of INR 2 per equity share of face value INR 10 for the financial year ended March 31, 2026 was approved by shareholders at the Annual General Meeting held on July 20, 2026 and paid on July 28, 2026.

The Statutory Auditors issued a limited review report on the standalone and consolidated results, stating that nothing came to their attention suggesting the statements do not disclose the required information or contain a material misstatement. The consolidated review relies in part on the review report of another auditor for one subsidiary whose financial information reflects total assets of Rs 48,643.30 lacs as at September 30, 2026, total revenues of Rs Nil for the quarter and year-to-date, total net loss after tax of Rs 238.78 lacs and Rs 448.94 lacs, and cash outflows (net) of Rs 8,361.31 lacs.

What this means for a retail reader

• A corporate guarantee is a contingent obligation: the company has agreed to repay the subsidiary's borrowings if the subsidiary does not. It does not by itself add new debt to the standalone books, but it links the parent's balance sheet to the subsidiary's loan.
• The new guarantee replaces an existing guarantee structure, with the earlier EUR 23.72 million guarantee to AKA to be cancelled once formalities are completed.
• The quarterly numbers show higher revenue from operations and higher profit for the period compared with the same quarter a year earlier, alongside a rise in total expenses.

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