Richa Industries Limited

Introduction:

Richa Industries Limited (RICHAIND) started out as a mid-size BSE-listed company. It got incorporated on September 15, 1993, under the name Richa Knits Private Limited in Faridabad, Haryana.In 2003, the company converted to a public limited entity and took the name Richa Knits Limited. It was renamed again to Richa Industries Limited in May 2008. 

The company had two key business segments. Textiles covered knitting, dyeing, processing, and finishing of fabrics at its Faridabad and Gurgaon plants. The other segment, Pre-Engineered Buildings/EPC, dealt with engineering, procurement, and construction of pre-engineered steel structures in Kashipur, Uttarakhand. Back in FY16, at its highest point, revenues topped Rs. 480 crore, solidifying its status as a real mid-size manufacturer. Things fell apart financially from FY18, though, with a whopping Rs. 106 crore loss in just one year. That led to CIRP kicking off in December 2018. After several failed tries at resolution, liquidation happened, and assets went to the new buyer on November 27, 2025.

This report focuses on FY19–FY21 as the study period—the last three years where full standalone data is available on Screener.in and BSE India filings.

2. Company Overview

Background and History

Sushil Gupta founded Richa Industries Limited in 1993, putting in an initial Rs. 20 lakh. It started with knitting fabric manufacturing and quickly grew into dyeing, processing, and finishing. That made it one of North India's biggest single-location fabric processing units. The company launched its IPO in December 2006. Between 2008 and 2016, it expanded into Pre-Engineered Buildings (PEB) and EPC construction, securing contracts from both government and private clients. At its FY16 peak, revenue reached Rs. 480 crore, with over 1,000 employees working across multiple locations.

Collapse — FY18 Onwards

Starting in FY17, revenues dropped fast—from Rs. 506 crore that year to Rs. 192 crore in FY18, then Rs. 156 crore in FY19. Worse still, losses ballooned to Rs. 106 crore in FY18 and Rs. 172 crore in FY19. Those huge losses erased all equity and reserves, leaving net worth deeply negative. Borrowings climbed to Rs. 269 crore by FY19 and Rs. 346 crore by FY21 as the company kept pulling from credit lines despite the bleed. Promoter Sandeep Gupta's fraud caused the downfall—the Enforcement Directorate arrested him for siphoning funds to shell companies and defrauding banks.

CIRP and the Liquidation Timeline

CIRP began in December 2018. Years of resolution efforts failed to produce any workable plan. Finally the NCLT ordered liquidation in the year 2024. An e-auction occurred on October 16, 2025. The sale wrapped up with possession handed over in November, 2025. Richa Industries no longer operates as an independent entity.

3. Promoter Introduction

Promoter stake held steady at 59.41% from FY17 through March 2023—last Screener data. But the Gupta family (Sushil Gupta, Sandeep Gupta) drove the collapse. Key directors from last BSE reports (FY2024):

Table 1: Promoters and Key Persons (Source: BSE Annual Reports / Announcements / Growth)

Gupta promoters' actions wrecked it. 59.41% control plus alleged asset stripping caused massive bank losses. Sandeep Gupta's ED arrest shows fraud, not just bad business. Dec 2018 on, NCLT's RP/Liquidator ran everything.

Important Note

4. Financial Statement Analysis

Note: No FY22–FY24 data on Screener.in. Tables cover FY19–FY21 only. Later annual reports filed on BSE but Screener lacks financial tables—shows non-operational CIRP/liquidation status.

4.1 Income Statement (FY19–FY21)

Revenue tanked Rs. 156 crore FY19 to 43 crore FY20, 35 crore FY21—leftover textile ops under Resolution Professional. Huge losses: Rs. 172 crore FY19, 57 crore FY20, 46 crore FY21. Interest Rs. 36–38 crore on Rs. 269–346 crore debt plus ops losses Rs. 91 crore FY19, 11 crore FY20, 8 crore FY21 killed it. OPM deep negative. No dividends since FY15.

Table 2: Income Statement — FY19 to FY21 (Source: Screener.in)
FY22–FY24 not available

Chart 1: Revenue vs. Net Loss — FY19 to FY21 (Source: Screener.in)

4.2 Balance Sheet (FY19–FY21)

The balance sheet screams total ruin. Rs. 24 crore equity crushed by reserves at -172 crore FY19, -229 FY20, -275 FY21—losses over 11x equity capital. Net worth -148, -205, -251 crore—insolvency city. Debt climbed 269 to 346 crore even in CIRP from interest buildup. Assets dropped 196 to 177 crore as business died. Fixed assets 111 to 93 crore. Screener book value Rs. -34.1/share.

Table 3: Balance Sheet Summary — FY19 to FY21 (Source: Screener.in)​

4.3 Cash Flow

Ops cash burned -32 crore FY19. FY20 -7 crore, FY21 flat zero—Resolution Professional squeezed ops dry, held cash tight. Investing/financing near zero FY20–21—no capex, no new debt (lenders locked in CIRP).

Table 4: Cash Flow Summary — FY19 to FY21 (Source: Screener.in)​

4.4 Key Ratios

Table 5: Key Financial Ratios — FY19 to FY21 (Source: Screener.in)
FY22–FY24 not available

5. Key Insights and Interpretation

Scale of the Collapse

Richa Industries saw one of the wildest meltdowns in micro-caps. Revenue plunged 93% from Rs. 506 crore FY17 to 35 crore FY21. Cumulative FY18–21 losses topped Rs. 380 crore against just Rs. 24 crore equity capital. Debt doubled from 179 crore to 346 crore as interest snowballed. Not a slow fade—this was a total financial explosion.

Fraud — The Core Cause

ED arrested Sandeep Gupta for funneling assets to shells and scamming banks—fraud drove it, not just bad markets. Sets RICHAIND apart from other troubled firms here. Criminal cash grabs caused hundreds of crores in bank losses, per Groww profile reports.

Debtor Days of 507 in FY21

507 debtor days FY21—17 months of frozen receivables. Zero collections. With Rs. 346 crore debt and Rs. 29 crore yearly interest, no chance to pay up. Proved CIRP inevitable—business dead on arrival.

Final Outcome — Sale Under Liquidation

E-auction October 16, 2025. LOI to Kaveri Industries/Narendra Kumar Srivastava group. Assets handed over November 27, 2025. End of Richa as listed standalone. Buyers might run textile scraps, but the shell's done

6. Conclusion

Richa Industries Limited marks the worst financial and governance disaster in this series. A Rs. 480 crore revenue manufacturer imploded into insolvency in two years—fueled by wild debt piles and alleged promoter fraud. FY19 losses of Rs. 172 crore on Rs. 156 crore sales scream fraud and chaos, not just tough markets.

CIRP hit December 2018, dragged through failed fixes, liquidated November 2025. No FY22–24 data on Screener—company was legally dead. Stock limps at Rs. 1.65 BSE, Rs. 3.87 crore mcap—pure gambling on a corporate corpse.

Sources:

1. Screener
2. BSE