Financial Results Summary

Quarterly Performance (₹ in Lakhs)

  • Revenue from operations: ₹1,291.12 (Q1 FY27) vs ₹1,488.15 (Q4 FY26) vs ₹1,390.92 (Q1 FY26)
  • Other income: ₹3.47 (Q1 FY27) vs ₹7.88 (Q4 FY26) vs ₹9.59 (Q1 FY26)
  • Total revenue: ₹1,294.59 (Q1 FY27) vs ₹1,496.03 (Q4 FY26) vs ₹1,400.51 (Q1 FY26)
  • Total expenses: ₹1,307.86 (Q1 FY27) vs ₹1,515.22 (Q4 FY26) vs ₹1,532.44 (Q1 FY26)
  • Profit/(Loss) before exceptional items and tax: (₹13.27) (Q1 FY27) vs (₹19.19) (Q4 FY26) vs (₹131.93) (Q1 FY26)
  • Exceptional items: ₹0.00 (all periods)
  • Tax expense: (₹1.48) (deferred tax liability) for Q1 FY27
  • Net profit/(loss) for the period: (₹14.75) (Q1 FY27) vs (₹563.77) (Q4 FY26) vs (₹11.95) (Q1 FY26)
  • Total comprehensive income: (₹14.38) (Q1 FY27) vs (₹565.55) (Q4 FY26) vs (₹12.17) (Q1 FY26)

Earnings Per Share (₹)

  • Basic EPS (continuing operations): (₹0.34) (Q1 FY27) vs (₹11.82) (Q4 FY26) vs ₹12.56 (Q1 FY26)
  • Diluted EPS (continuing operations): (₹0.34) (Q1 FY27) vs (₹11.82) (Q4 FY26) vs ₹12.56 (Q1 FY26)
  • Basic EPS (total): (₹0.34) (Q1 FY27) vs (₹11.82) (Q4 FY26) vs ₹12.56 (Q1 FY26)
  • Diluted EPS (total): (₹0.34) (Q1 FY27) vs (₹11.82) (Q4 FY26) vs ₹12.56 (Q1 FY26)

Key Expense Components (₹ in Lakhs, Q1 FY27)

  • Cost of materials consumed: ₹758.70
  • Changes in inventories: ₹45.01
  • Employees benefit expense: ₹129.72
  • Finance costs: ₹99.07
  • Depreciation and amortization: ₹58.85
  • Power and fuel expenses: ₹86.23
  • Stores & spares: ₹43.75
  • Other expenses: ₹86.53

Capital Structure

  • Paid-up equity share capital: ₹428.64 lakhs (42,86,400 shares of ₹10 face value)
  • Other reserves excluding revaluation reserves: ₹800.04 lakhs (as of 31.03.2026)

Corporate Actions and Events

Annual General Meeting

  • 46th Annual General Meeting scheduled for 25th September 2026 through Video Conferencing
  • Register of Members and Share Transfer Books to be closed from 19th September 2026 to 25th September 2026 (both days inclusive)
  • Cut-off date for determining eligibility of shareholders for remote e-Voting: 18th September 2026

Preference Share Modification (Historical)

The company had issued redeemable preference shares to promoters on 26th April 2012 amounting to ₹15,00,00,000 (Rupees Fifteen Crores) with original maturity period of 13 years (redeemable by April 2025).

Pursuant to a proposal for extension of maturity period, preference shareholders approved extension by additional 7 years in EGM convened on 13th September 2024, with special resolution passed at EGM held on 3rd December 2024.

In accordance with Ind AS 109 - Financial Instruments, the modification was assessed to result in substantial modification, warranting:

  • Derecognition of existing liability
  • Recognition of new financial liability at fair value of ₹8,41,12,213/- as on 30.06.2025
  • Difference of ₹6,58,87,787/- (excess of carrying value over present value of new liability) recognized as income in Statement of Profit and Loss
  • Reported as exceptional item in profit and loss account for quarter ended 30.06.2025 and year ended 31.03.2026
  • New financial liability to be amortized over extended period using Effective Interest Rate (EIR) method
  • This accounting treatment resulted in one-time income recognition of ₹6.58 crores for quarter ended 30.06.2025 and previous year ended 31.03.2026
  • Modification does not impact cash flows but affects profit recognition under applicable accounting standards

Operational Context

  • Current quarter witnessed poor demand for yarn with continued disparity in cotton prices compared to yarn price
  • Company running only one unit for 3 shifts with depreciation provided accordingly
  • Power and fuel cost reduced to ₹86.23 lakhs (Q1 FY27) from ₹143.50 lakhs (Q1 FY26)
  • Reduction primarily attributable to self-consumption of electricity generated from solar power plant commissioned by company
  • Company implementing various cost-control and efficiency-enhancement measures across operations
  • Main business is manufacture and sale of yarn and related products
  • No separate reportable segments as per Ind AS 108 Operating Segments

Financial Impact Assessment

  • Current quarter net loss of ₹14.75 lakhs represents improvement from previous quarter loss of ₹563.77 lakhs
  • Revenue decline of approximately 13% quarter-on-quarter
  • Significant reduction in power costs year-on-year due to solar plant utilization
  • No quantified forward-looking guidance or management commentary provided