Financial Performance Overview

Standalone Results:

  • Revenue from Operations: ₹139.90 crore (FY25: ₹112.40 crore) - 24.5% increase
  • Net Profit/(Loss): (₹0.75 crore) (FY25: (₹2.46 crore)) - 69.5% improvement
  • Total Comprehensive Income: (₹6.53 crore) (FY25: (₹11.18 crore))

Consolidated Results:

  • Revenue from Operations: ₹13,989.67 lakhs (FY25: ₹11,239.58 lakhs) - 24.4% increase
  • Net Profit/(Loss): (₹78.79 lakhs) (FY25: (₹242.72 lakhs)) - 67.5% improvement
  • Total Comprehensive Income: (₹834.74 lakhs) (FY25: (₹971.26 lakhs))
  • Basic EPS: (₹0.56) (FY25: (₹1.71))

Key Financial Position

Standalone (as of March 31, 2026):

  • Total Assets: ₹84.39 crore (Mar-25: ₹99.76 crore)
  • Total Equity: ₹27.27 crore (Mar-25: ₹33.81 crore)
  • Current Borrowings: ₹48.32 crore (Mar-25: ₹57.40 crore)

Consolidated Highlights:

  • Property, Plant & Equipment (Net): ₹25.72 crore with significant additions including Solar Plant ₹8.87 crore
  • Investments: Includes FVOCI investments in BigBloc Construction Limited (₹8.82 crore) and associates Mohit Yarns Limited (₹46.70 crore) and Mohit Overseas Limited (₹20.52 crore)
  • Borrowings: Current borrowings of ₹48.32 crore and non-current borrowings of ₹7.37 crore

Operational & Business Highlights

  • Primary business: Manufacturing Polyester Draw Texturized Yarn (DTY) and weaving grey cloth
  • Holds Oeko-Tex® Standard 100 certificate
  • Export Turnover: ₹10.49 crore (FY25: ₹14.44 crore) to South Korea, Thailand, Czech Republic, Denmark, Bangladesh, Egypt, Nepal
  • Operates in single reportable segment - Textiles

Fundraising Initiatives

  • Right Issue: Board approved right issue to raise up to ₹15 crore (revised down from initially approved ₹25 crore)
  • Related Party Borrowings: Seeking shareholder approval for material RPTs totaling ₹60 crore with four promoters for FY27 borrowings

Corporate Governance & Compliance

  • Board Composition: Chairman, MD & CFO Mr. Narayan Sitaram Saboo; Non-Executive Directors including Mr. Naresh Sitaram Saboo seeking reappointment
  • Auditors: Statutory Auditor - M/s. Rajendra Sharma & Associates; Cost Auditor - M/s. Nainesh Kantliwala & Co.; Secretarial Auditor - M/s. Dhirren R. Dave & Co.
  • Regulatory Issues: Fines imposed by BSE and NSE totaling approx. ₹12.18 lakh for various non-compliances, including board composition issues
  • Auditor Qualifications: Qualified opinion regarding non-provision of post-employment benefits (gratuity, leave encashment) on accrual basis as required by Ind AS 19

Significant Disclosures

  • Contingent Liabilities: Tax and entry tax demands under dispute amount to approximately ₹34.16 crore (Gujarat Entry Tax: ₹284.57 lakh, Gujarat VAT: ₹38.76 lakh, GST: ₹0.27 lakh, Income Tax: ₹5.38 lakh)
  • Related Party Transactions: Unsecured loans from promoters totaling ₹12.53 crore during FY26 with outstanding balance of ₹16.66 crore as of March 31, 2026
  • Associate Companies: Mohit Overseas Limited (49.25% holding) and Mohit Yarns Limited (49.48% holding) with share of loss of ₹3.60 lakh in FY26
  • Cash Flow Improvement: Net cash from operating activities turned to ₹1,287.81 lakh inflow from ₹467.81 lakh outflow in FY25

AGM Agenda & Corporate Actions

  • AGM Date: September 30, 2026 (Virtual Mode)
  • Ordinary Business: Adoption of financial statements; Reappointment of Mr. Naresh Sitaram Saboo
  • Special Business: Approval for cost auditor remuneration; Approval for ₹60 crore related party borrowing transactions with promoters
  • No dividend recommended for FY26 to conserve resources

Outlook & Challenges

Despite improved operational performance with reduced losses and revenue growth, the company faces challenges including ongoing tax litigations, regulatory compliance issues, and significant other comprehensive losses primarily from investments in associates and equity instruments. The company continues to rely on promoter funding and is undertaking fundraising initiatives to support operations.