Eastern Treads Limited submitted its unaudited standalone financial results for the quarter ended June 30, 2026 (Q1 FY27) to BSE Limited pursuant to Regulation 30 and Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Board of Directors approved these results at their meeting held on August 14, 2026. The submission includes the Statement of Unaudited Financial Results (Annexure 1) and the Limited Review Report by Statutory Auditors (Annexure 2).

Financial Performance (Quarter Ended June 30, 2026)

All figures are in ₹ lakhs except per share data:

Income:

  • Revenue from operations: ₹1,405.47
  • Other income: ₹10.63
  • Total income: ₹1,416.10

Expenses:

  • Cost of materials consumed: ₹961.27
  • Purchases of stock-in-trade: ₹1.14 (negative indicates credit)
  • Changes in inventories: ₹-3.05 (negative indicates decrease)
  • Employee benefits expense: ₹163.16
  • Finance costs: ₹81.87
  • Depreciation and amortization: ₹18.02
  • Other expenses: ₹210.06
  • Total expenses: ₹1,432.47

Profit/Loss:

  • Loss before exceptional items and tax: ₹-16.37
  • Exceptional items - Gain on extinguishment of financial liabilities: ₹205.03
  • Loss before tax: ₹-16.37
  • Tax expenses:
  • Current tax: ₹0
  • Deferred tax credit: ₹0
  • Loss for the period: ₹-16.37
  • Other comprehensive income/(loss): ₹0
  • Total comprehensive loss for the period: ₹-16.37

Per Share Data:

  • Basic loss per equity share: ₹-0.31
  • Diluted loss per equity share: ₹-0.31

Capital Structure:

  • Paid-up equity share capital (face value ₹10 each): ₹523.29 lakh
  • Other equity: Negative ₹1,820.01 lakh (includes accumulated losses of ₹3,123.7 lakh)

Comparative Figures

Quarter Ended June 30, 2025 (Q1 FY26):

  • Total income: ₹1,677.72
  • Profit before tax: ₹-14.00
  • Profit for the period: ₹-14.00
  • Basic EPS: ₹-0.27

Year Ended March 31, 2026 (FY26):

  • Total income: ₹6,275.95
  • Profit before tax: ₹5.82
  • Profit for the year: ₹8.56
  • Basic EPS: ₹0.16

Key Notes to Financial Results

1. The financial results are prepared in accordance with Indian Accounting Standards (Ind AS) and SEBI LODR Regulations.

2. The company reported a total comprehensive loss of ₹16.37 lakh for the quarter. Other equity stands at negative ₹1,820.01 lakh as of June 30, 2026, including accumulated losses of ₹3,123.7 lakh.

3. Despite net worth erosion, management performed liquidity and going concern assessments, including recoverable values of assets and overdue receivables. Based on business forecasts and fund flow projections, management expects to recover asset carrying amounts and discharge liabilities.

4. Figures for the quarter ended March 31, 2026 represent balancing figures between audited annual figures and previously published unaudited quarterly figures.

5. The company evaluated the impact of the Code on Social Security, 2020 on employee benefit obligations and determined no additional gratuity provision is required.

6. Prior period comparatives have been regrouped/reclassified to conform to current period presentation.

7. The results were reviewed by the Audit Committee and approved by the Board of Directors on August 14, 2026.

Auditors' Limited Review Report

G Joseph & Associates, Chartered Accountants (Firm Reg. No. 006310S), issued a limited review report on the financial results. The review was conducted in accordance with Standard on Review Engagements (SRE) 2410 issued by ICAI.

The auditors concluded: "Based on our review conducted as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement."

The report was signed by Allen Joseph, Partner (M No. 228498), on August 14, 2026, in Kochi.