Financial Performance Highlights (FY 2025-26)

Consolidated Performance:

  • Revenue from Operations: ₹421.96 crore (Previous year: ₹627.78 crore) - 33% decline
  • Net Loss: ₹662.18 crore (Previous year: ₹546.84 crore loss)
  • EBITDA Loss: ₹4.35 crore (Improved from ₹34.05 crore loss in FY25)
  • EPS: -₹137.48 (Continuing operations: -₹105.10; Discontinued operations: -₹32.39)

Standalone Performance:

  • Revenue from Operations: ₹42,195.77 lakhs (FY25: ₹62,778.47 lakhs)
  • Net Loss: ₹6,467.34 lakhs (FY25: ₹5,124.28 lakhs loss)
  • Total Assets: ₹36,114.95 lakhs (FY25: ₹58,462.09 lakhs) - 38% reduction
  • Total Borrowings: ₹21,560.30 lakhs (FY25: ₹41,329.94 lakhs) - 48% reduction

Operational Metrics & Restructuring

Production Volumes: Significant reduction across all segments:

  • Yarn: 39.20 lakh kg (103.47 lakh kg in FY25)
  • Woven fabric: 103.22 lakh metres (218.86 lakh metres in FY25)
  • Knitted fabric: 21.46 lakh kg (51.68 lakh kg in FY25)
  • Garments: 18.82 lakh pieces (24.63 lakh pieces in FY25)

Restructuring and Asset Monetization:

  • Completed sale of Shri Vishala Textile Mills (SVTM) Unit at Naidupet
  • Classified Chinthamani Textile Mills (CTM) Unit at Sivagangai as held for sale (carrying value: ₹1,458.26 crore)
  • Disposed windmill assets valued at ₹2,033.26 lakhs
  • Gain on sale of discontinued operations: ₹772.13 crore
  • Profit on asset sales: ₹33.81 crore

Impairment and Provisions:

  • Inventory Provision: ₹236.61 crore impairment recognized
  • Exceptional Items: Net charge of ₹371.97 crore including inventory provision and gratuity obligation
  • Inventory impairment charge: ₹36.46 crore due to market conditions

Strategic Shift and Market Performance

  • Exited low-margin commodity products to focus on technical textiles and protective wear segments
  • Export revenue: ₹270 crore (₹384 crore in FY25)
  • Domestic revenue: ₹115.07 crore (₹231.13 crore in FY25)
  • Addressing skilled tailor shortage through recruitment and training programs
  • Targeting export-led growth and higher-value products for turnaround

Capital Structure and Ownership

Paid-up Share Capital: ₹481.64 lakhs (48,16,446 equity shares of ₹10 each)

Promoter Holding: 73.49% as of March 31, 2026 (no changes in promoter shareholding)

Credit Rating: CARE BB+ (Stable) for long-term bank facilities and CARE A4+ for short-term facilities

Key Financial Ratios

  • Current Ratio: 0.85 (0.83 in FY25)
  • Debt Equity Ratio: 1.28 consolidated, 1.06 standalone (1.76 and 1.54 in FY25 respectively)
  • Inventory Turnover: 2.74 times (2.19 times in FY25)
  • Return on Equity: -27.35% (FY25: -18.32%)

80th Annual General Meeting Details

Date: September 22, 2026 | Time: 10:45 AM IST | Mode: Video Conference

Record Date: September 15, 2026 | e-Voting Period: September 19-21, 2026

AGM Agenda Items:

  • Adoption of audited standalone and consolidated financial statements
  • Re-appointment of Mrs. Vishala Ramswami who retires by rotation
  • Ratification of Cost Auditor Remuneration: ₹1,00,000 plus taxes
  • Re-appointment of Mr. M. E. Manivannan as Whole Time Director with monthly CTC of ₹5,80,615
  • Re-appointment of Mr. K. Kumaran as Independent Director for second term
  • Appointment of Dr. R Subrahmaniya Sivam as Independent Director for first term

Management Changes

CEO: Mr. N. Srinivasan resigned effective June 30, 2026

Company Secretary: Dr. V. Rajesh appointed effective January 1, 2026 (replacing Mr. S. Muthukrishnan)

Related Party Transactions

Material transactions with joint venture Gruppo P&P Loyal S.P.A (47.5% ownership):

  • Sale of garments and fabrics: ₹9,594.01 lakhs
  • Dividend received: ₹567.05 lakhs
  • Outstanding receivables from joint venture: ₹1,572.25 lakhs

Contingent Liabilities

Tax Disputes:

  • CST demand: ₹795.54 lakhs (2013-14)
  • GST disputes: ₹1,689.27 lakhs (2017-18 to 2022-23)
  • Income tax disputes: ₹2,183.37 lakhs (AY 2017-18 to 2022-23)
  • Bank guarantees: ₹143.89 lakhs

Audit Matters

Statutory Auditors: M/s. Brahmayya & Co. (Firm Reg. No: 000511S)

Audit Opinion: Unmodified with Emphasis of Matter regarding business restructuring and going concern assumption

Emphasis of Matter: Notes management's initiatives involving monetization of assets and operational restructuring, with confidence in achieving sustainable operational profitability