Company Overview

Mahalaxmi Fabric Mills Limited (Scrip Code: 544233) filed its Annual Report for FY 2025-26 and audited financial statements, reporting significantly deteriorated financial performance primarily due to a major fire incident.

Financial Performance

Standalone Results:

  • Net Loss of ₹10.17 crore vs Profit of ₹3.62 crore in FY25
  • Income from Operations & Other Income: ₹55.43 crore (14.5% decrease from ₹64.89 crore)
  • Profit Before Tax: Loss of ₹12.33 crore vs Profit of ₹4.84 crore

Consolidated Results:

  • Net Loss of ₹2.39 lakh vs Profit of ₹791.07 lakh in FY25
  • Revenue from Operations: ₹13,510.19 lakh vs ₹15,252.99 lakh
  • Total Comprehensive Income: ₹(16.50) lakh vs ₹822.59 lakh

Fire Incident Impact

The major fire on November 24, 2024, caused extensive damage to buildings, plant & machinery, and inventories. The company recognized an exceptional loss of ₹7.41 crore (₹741.16 lakh) from final insurance settlements, comprising:

  • Loss on Property, Plant and Equipment: ₹444.11 lakh
  • Loss on own and third-party stock: ₹297.05 lakh

Production operations have gradually recommenced post-fire.

Balance Sheet Deterioration

  • Total Borrowings: Increased to ₹7,729.24 lakh from ₹4,391.60 lakh
  • Gearing Ratio: Rose to 78.14% from 43.51%
  • Property, Plant and Equipment: Net additions of ₹2,710.41 lakh, increasing gross block to ₹14,288.26 lakh
  • Current Ratio: Declined to 0.87 from 1.22
  • Cash Flow: Net cash from operating activities was negative ₹2,992.78 lakh

Corporate Governance & Events

  • 35th AGM: Scheduled for September 30, 2026, to adopt financial statements, reappoint Anand Jeetmal Parekh as Managing Director, and appoint new Secretarial Auditor
  • Management Changes: Heer Yuvraj Pandya resigned as Company Secretary; Hilery Mashrani appointed as replacement
  • Secretarial Auditor Change: M/s. Malay Desai & Associates resigned; M/s. Rohit Periwal & Associates proposed
  • Dividend: No dividend recommended for FY26

Subsidiary Information

Mahalaxmi Exports Private Limited (wholly-owned material subsidiary) reported:

  • Turnover: ₹82.16 crore
  • Profit After Tax: ₹10.15 crore
  • Total Assets: ₹68.26 crore

Capital Structure & Ownership

  • Paid-up Equity Share Capital: ₹10.62 crore (10,620,275 shares of ₹10 each)
  • Promoter Holding: 64.80% (6,882,191 shares)
  • Major promoters: Rahul J. Parekh (17.30%), Anand J. Parekh (16.06%), Jeetmal B. Parekh (12.14%)

Key Ratios & Metrics

  • Return on Equity: -0.02% (FY25: 8.08%)
  • Net Profit Ratio: -0.02% (FY25: 5.19%)
  • Debt-Equity Ratio: 0.45 (FY25: 0.15)
  • EPS: Negative ₹9.58 (Standalone) vs Positive ₹3.40

The company faces significant challenges from the fire impact, increased leverage, and operational disruptions, requiring careful monitoring of recovery progress and financial stability.