Key Quantitative Figures

Income Statement (₹ in Lakhs)

Quarter Ended 30.09.2026:

  • Net Sales/Income from Operations: ₹1,907.31
  • Other Income (Net): ₹25.78
  • Total Income: ₹1,933.09
  • Total Expenses: ₹1,898.97
  • Profit Before Tax: ₹34.12
  • Tax Expense: ₹12.02 (Deferred Tax)
  • Profit for the Period: ₹46.14
  • Basic & Diluted EPS: ₹1.08

Half Year Ended 30.09.2026:

  • Net Sales/Income from Operations: ₹3,198.43
  • Other Income (Net): ₹29.25
  • Total Income: ₹3,227.68
  • Total Expenses: ₹3,206.83
  • Profit Before Tax: ₹20.85
  • Tax Expense: ₹10.54 (Deferred Tax)
  • Profit for the Period: ₹31.39
  • Basic & Diluted EPS: ₹0.73

Comparative Figures (Quarter):

  • Q2 FY26 Net Profit: (₹104.93) loss
  • Q1 FY27 Net Profit: (₹14.75) loss

Balance Sheet Highlights (₹ in Lakhs)

As at 30.09.2026:

  • Property, Plant and Equipment: ₹4,853.18
  • Inventories: ₹1,754.83
  • Trade Receivables: ₹568.28
  • Cash and Cash Equivalents: ₹3.37
  • Total Assets: ₹7,903.52
  • Equity Share Capital: ₹428.64
  • Other Equity: ₹831.60
  • Borrowings (Non-current): ₹2,518.36
  • Borrowings (Current): ₹1,153.99
  • Total Equity and Liabilities: ₹7,903.52

Cash Flow Statement (₹ in Lakhs)

Half Year Ended 30.09.2026:

  • Cash from Operating Activities: ₹1,351.52
  • Cash from Investing Activities: ₹53.95
  • Cash from Financing Activities: (₹1,404.24)
  • Net Increase in Cash: ₹1.23

Dates of Action

  • Board Meeting Date: 12 November 2026 (started at 11:30 AM, concluded by 1:00 PM)
  • Period Ended: 30 September 2026
  • Filing Date: 12 November 2026

Parties Involved

  • Statutory Auditors: Gopalaiyer and Subramanian, Chartered Accountants
  • Company Secretary: CS M Harish
  • Managing Director: P. Palaniappan
  • Audit Committee and Board of Directors reviewed and approved results

Significant Accounting Treatment

The company had issued redeemable preference shares to promoters amounting to ₹15,00,00,000 with original maturity in April 2025. Following EGM approvals on 13 September 2024 and 3 December 2024, the redemption period was extended by seven years.

In accordance with Ind AS 109, this modification was assessed as substantial, requiring derecognition of the existing liability and recognition of a new financial liability at fair value of ₹8,41,12,213. The difference of ₹6,58,87,787 was recognized in the Statement of Profit and Loss for half year ended 30 September 2025 and financial year ended 31 March 2026. This represents a one-time accounting income recognition with no actual cash flow impact.

Operational Highlights

  • Company is running only one unit with 3 shifts
  • Power and fuel cost reduced to ₹114.28 lakhs in Q2 FY27 from ₹137.45 lakhs in Q2 FY26, primarily due to self-consumption from solar power plant
  • Implementing cost control and efficiency-enhancement measures to reduce operational losses
  • Main business is manufacture and sale of yarn and related products
  • No separate reportable segments as per Ind AS 108

Financial Impact

Results show improvement from loss-making position in previous periods to profitability in current quarter, with Q2 FY27 net profit of ₹46.14 lakhs compared to loss of ₹104.93 lakhs in Q2 FY26.

Capital Structure

Paid-up equity share capital remains unchanged at ₹428.64 lakhs (face value ₹10 per share).

Auditor's Review

Statutory auditors conducted limited review and issued an unmodified review report dated 12 November 2026, stating nothing has come to their attention that causes them to believe the financial results contain any material misstatement.