Financial Performance Summary
Standalone Performance:
- Gross Income: ₹39,582.93 lakh (FY26) vs ₹51,262.85 lakh (FY25) - 22.8% decrease
- Profit Before Tax: ₹1,654.21 lakh (FY26) vs ₹1,834.94 lakh (FY25) - 9.85% decrease
- Profit After Tax: ₹1,498.02 lakh (FY26) vs ₹1,286.06 lakh (FY25) - 16.5% increase
- Total Comprehensive Income: ₹1,567.74 lakh (FY26) vs ₹1,195.97 lakh (FY25)
Consolidated Performance:
- Revenue from Operations: ₹365.60 crore (FY26) vs ₹491.21 crore (FY25)
- Other Income: ₹146.94 crore (FY26) vs ₹59.20 crore (FY25)
- Profit After Tax: ₹143.60 crore (FY26) vs ₹131.39 crore (FY25) - 9.3% increase
- Earnings Per Share: ₹4.92 (FY26) vs ₹4.50 (FY25)
Balance Sheet Highlights
- Total Assets: ₹261.51 crore (FY26) vs ₹234.14 crore (FY25)
- Non-Current Investments: ₹700.98 crore (FY26) vs ₹438.04 crore (FY25) - significant increase
- Current Investments: ₹118.71 crore (FY26) vs ₹0 crore (FY25)
- Reserves and Surplus: ₹20,907.50 lakh (FY26) vs ₹19,398.10 lakh (FY25)
- Short-term Borrowings: ₹320.34 crore (FY26) vs ₹60.53 crore (FY25) - sharp increase
- Total Equity: ₹209.65 crore (FY26) vs ₹195.18 crore (FY25)
Dividend Declaration
- Board recommended Final Dividend of 10% (₹0.20 per equity share) on 2,91,71,500 equity shares
- Total dividend amount: ₹58,34,300/- for Financial Year 2025-26
- Subject to approval at 31st Annual General Meeting
- Dividend Distribution Policy followed as per Regulation 43A of SEBI Listing Regulations
Subsidiary Companies
- G Varadan Limited: Wholly Owned Subsidiary
- Innovative Spintex Private Limited: Became Wholly Owned Subsidiary during the year under review
- Consolidated financial statements prepared as per Section 129(3) of Companies Act, 2013
Operational Performance
Textile Division:
- Revenue decreased by ₹12,506.97 lakh compared to previous year
- Profit increased by ₹432.74 lakh (includes long-term capital gain of ₹541.99 lakh from land sale)
- Export revenue: ₹33,932.02 lakh (FY25: ₹44,220.29 lakh)
- Major export markets: Bangladesh, Peru, China, Egypt, South Korea
Power Division:
- Revenue decreased by ₹46.37 lakh
- Profit decreased by ₹10.04 lakh due to non-operation of one WTG in Maharashtra
Key Ratios
- Debt Equity Ratio: 0.15 (FY26) vs 0.03 (FY25)
- Current Ratio: 3.86 (FY26) vs 6.18 (FY25)
- Debt Service Coverage Ratio: 0.54 (FY26) vs 2.53 (FY25)
- Return on Equity: 7% (FY26) vs 7% (FY25)
- Net Profit Ratio: 4% (FY26) vs 3% (FY25)
- Inventory Turnover Ratio: 47.26 (FY26) vs 54.43 (FY25)
- Debtor Turnover Ratio: 3.56 (FY26) vs 4.98 (FY25)
Investment Portfolio
- Equity Investments (Quoted): ₹2.15 crore (Fair Value)
- Mutual Funds: ₹205.95 crore (Fair Value)
- Government Securities: ₹150.70 crore (Fair Value)
- Other Funds: ₹441.46 crore (Fair Value)
- Unlisted Shares: ₹0.50 crore (Fair Value)
Corporate Governance & Compliance
- Compliance with SEBI Listing Regulations and Companies Act, 2013
- Four Board Committees: Audit, Stakeholders Relationship, Nomination and Remuneration, CSR
- 5 Board meetings held during FY26
- Unmodified audit opinion with no qualifications from statutory auditors P C Ghadiali and Co LLP
- No instances of fraud reported
CSR Activities
- CSR expenditure: ₹38.00 lakh against requirement of ₹37.94 lakh (2% of average net profit)
- Major beneficiaries: Shree Pragati Foundation (₹25 lakh), Maharshi Welfare Foundation (₹13 lakh)
Litigation and Contingent Liabilities
Income Tax Matters: ₹1,215.52 lakh under appeal (various assessment years)
GST Matter: ₹25.56 lakh demand for FY 2018-19 under appeal
Related Party Transactions
- Transactions with subsidiaries G Varadan Limited and Innovative Spintex Private Limited
- Loans taken from directors: Mr. Umesh Lahoti (₹22.94 lakh), Mr. Ujwal Lahoti (₹2.66 lakh)
- Total related party transactions: ₹275.25 lakh (FY25: ₹219.20 lakh)
Forward-looking Statements
The outlook discusses opportunities in cotton productivity initiatives, integrated textile infrastructure, trade agreements, and value-added products, while noting threats from raw material volatility, global demand pressures, and compliance costs.