Shares of Alok Industries, the textile company backed by Mukesh Ambani’s Reliance Industries, faced heavy selling pressure on Friday. The stock plunged nearly 12 percent and hit a fresh 52-week low of Rs 9.16 per share. The counter has now lost over 21 percent in just five trading sessions.
BSE seeks clarification on unusual volumes
The sharp fall was not part of the broader market selloff on Friday. The Bombay Stock Exchange asked Alok Industries to explain the sudden surge in trading volumes. The company responded that no information was pending that needed disclosure under listing rules. It also said there was no unpublished news that investors should worry about. The clarification came after volumes spiked sharply during the trading session.
Massive erosion across timeframes
The textile stock has fallen 22.57 percent in the last one month alone. It is down 43 percent on a year-to-date basis so far in 2026. The decline stands at 47 percent over the past one year. Over three years the share has dropped 48 percent. The five-year decline is as deep as 58 percent. Long-term shareholders have seen significant wealth erosion in this counter.
June quarter numbers show narrower loss
Alok Industries recently published its results for the June quarter. The consolidated net loss narrowed to Rs 138.25 crore from Rs 171.56 crore a year ago. Revenue from operations grew 6.5 percent year-on-year to Rs 993.11 crore. Total expenses rose at a slower pace of 1.49 percent to Rs 1,153.45 crore. However, the cost of materials used climbed about 18 percent to Rs 538.86 crore, keeping pressure on margins.
Company structure and ownership details
Alok Industries operates as a vertically integrated textile manufacturer. Its presence covers both the cotton and polyester value chains across India. The company is jointly owned by Reliance Industries and JM Financial Asset Reconstruction. Reliance Industries holds a 40.01 percent stake in the firm. JM Financial Asset Reconstruction owns 34.99 percent of the company. The textile firm has been in existence for nearly four decades.
What lies ahead for the stock
The standalone net loss for Alok Industries also narrowed to Rs 136.20 crore in the June quarter from Rs 176.48 crore a year earlier. Standalone revenue rose 5.81 percent year-on-year to Rs 935.94 crore. With the stock trading near its all-time low levels, investors are watching for any turnaround triggers. The company continues to face challenges from rising raw material costs and operational inefficiencies.
