Multibagger Penny Stock Under Rs 20 Hit 20% Upper Circuit as Revenue from Operations up 348% QoQ & Net Profit up 206% QoQ

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Multibagger Penny Stock Under Rs 20 Hit 20% Upper Circuit as Revenue from Operations up 348% QoQ & Net Profit up 206% QoQ

To fuel its next phase of expansion, the company has secured in-principle approval from the Bombay Stock Exchange (BSE) for a proposed Rs 90 crore Rights Issue.

Ahmedabad-based specialty chemicals trader AVI Polymers Ltd (BSE: 539288) has reported a significant operational turnaround for the third quarter of fiscal year 2026. The company achieved a net profit of Rs 7.02 crore for the quarter ended December 31, representing a 206 per cent increase over the previous quarter. This bottom-line growth was supported by a surge in revenue from operations, which rose to Rs 132.32 crore, up from Rs 29.50 crore in Q2FY26. For the first nine months of the current fiscal year, the company has accumulated a total revenue of Rs. 161.82 crore and a net profit of Rs 10.09 crore.

To fuel its next phase of expansion, the company has secured in-principle approval from the Bombay Stock Exchange (BSE) for a proposed Rs 90 crore Rights Issue. This approval, granted on January 6, 2026, allows the Board of Directors to proceed with the fundraising initiative. While the face value of the shares is set at Rs. 10 each, the specific terms—including the issue price, rights entitlement ratio, and record date—will be finalised by the authorised Allotment Committee and announced in an upcoming board meeting.

This capital infusion follows a major restructuring of the company’s financial framework. In an Extraordinary General Meeting (EGM) held on December 11, 2025, shareholders approved a massive increase in the authorised share capital from Rs 6.5 crore to Rs 100 crore. This move expands the company’s share capacity from 65 lakh to 10 crore equity shares, providing the necessary headroom for the pending rights issue and any future strategic growth or capital-raising activities the management may pursue.

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In addition to the financial restructuring, the EGM saw unanimous shareholder support for corporate governance updates, including the appointment of M/s Kapil Kumar Agrawal Associates as the new statutory auditors. With a 100 per cent vote in favour, the appointment underscores strong investor confidence in the company’s leadership. The combination of a sharp increase in operational revenue and a significantly strengthened capital base positions AVI Polymers to scale its trading operations and meet evolving regulatory and market demands.

Sharing more details, Mr Chintan Patel, Managing Director, AVI Polymers Ltd, said, “Q3 FY26 marks a decisive turnaround for the company, reflecting the strength of our execution, disciplined cost management, and renewed business momentum. The sharp growth in revenue and profitability underscores the scalability of our trading platform and increases customer confidence. The in-principle approval for the ₹90 crore Rights Issue is a critical milestone and will provide the necessary growth capital to expand volumes, strengthen working capital, and pursue strategic opportunities. With shareholder support and a strengthened capital base, we are well-positioned to accelerate sustainable growth and create long-term value.”

Disclaimer: The article is for informational purposes only and not investment advice.