Board Meeting Outcomes

The Board of Directors meeting held on November 5, 2026 (11:15 AM to 1:50 PM) approved the following:

1. Unaudited Financial Results for the quarter ended September 30, 2026 along with Limited Review Report pursuant to Regulation 33 of SEBI (LODR) Regulations, 2015

2. Authorized management to approach banking institutions/lenders for loans up to an aggregate amount of ₹13 Crores for construction of the Company's new facility in Hindupur, Sri Sathya Sai Dt., Andhra Pradesh (project details previously disclosed to stock exchanges on September 24, 2026)

3. Authorized management to avail an Overdraft (OD) facility against the Company's existing Fixed Deposits (FDs) up to an aggregate limit of ₹4.5 crores for liquidity and utilization for the Hindupur facility construction

As of the date, specific commercial banks/lenders, definitive terms, individual allocations, and final security structures for both the loan and OD facility have not been finalized. The Company will make separate detailed disclosures under Regulation 30 when definitive agreements/sanction letters are formally executed.

Financial Results Overview

Quarter Ended September 30, 2026 (Unaudited):

  • Net Sales/Income from Operations: ₹146.73 lakh
  • Other Income (Net): ₹9.13 lakh
  • Total Income: ₹155.86 lakh
  • Total Expenses: ₹100.62 lakh
  • Profit before exceptional items and tax: ₹55.24 lakh
  • Profit before tax: ₹55.24 lakh
  • Total Tax Expenses: ₹21.50 lakh
  • Profit for the period from continuing operations: ₹33.74 lakh
  • Profit from discontinued operations (after tax): ₹0.05 lakh
  • Profit for the period: ₹33.79 lakh
  • Total comprehensive income for the period: ₹33.80 lakh
  • Basic EPS (continuing and discontinued): ₹0.06
  • Diluted EPS (continuing and discontinued): ₹0.06

Half Year Ended September 30, 2026 (Unaudited):

  • Net Sales/Income from Operations: ₹296.24 lakh
  • Other Income (Net): ₹17.66 lakh
  • Total Income: ₹313.90 lakh
  • Total Expenses: ₹202.74 lakh
  • Profit before exceptional items and tax: ₹111.16 lakh
  • Profit before tax: ₹111.16 lakh
  • Total Tax Expenses: ₹18.10 lakh
  • Profit for the period from continuing operations: ₹93.06 lakh
  • Loss from discontinued operations (after tax): ₹(3.38) lakh
  • Profit for the period: ₹89.68 lakh
  • Total comprehensive income for the period: ₹89.70 lakh
  • Basic EPS (continuing and discontinued): ₹0.16
  • Diluted EPS (continuing and discontinued): ₹0.16

Comparative Performance

Quarterly Comparison (Q2 FY27 vs Q2 FY26):

  • Net Sales decreased from ₹158.52 lakh to ₹146.73 lakh
  • Profit before tax decreased from ₹66.94 lakh to ₹55.24 lakh
  • Profit for the period increased from ₹25.74 lakh to ₹33.79 lakh

Half Year Comparison (H1 FY27 vs H1 FY26):

  • Net Sales decreased from ₹308.92 lakh to ₹296.24 lakh
  • Profit before tax decreased from ₹115.80 lakh to ₹111.16 lakh
  • Profit for the period increased from ₹20.55 lakh to ₹89.68 lakh

Segment-wise Performance

Continuing Operations (Rental Services):

  • Q2 FY27 Revenue: ₹146.73 lakh
  • Q2 FY27 Profit before tax and finance cost: ₹80.77 lakh
  • H1 FY27 Revenue: ₹296.24 lakh
  • H1 FY27 Profit before tax and finance cost: ₹162.94 lakh

Discontinued Operations (Textiles):

  • The Company discontinued its Textile operations and informed exchanges on August 31, 2023
  • Q2 FY27 Loss from discontinued operations: ₹(5.74) lakh before exceptional items
  • Q2 FY27 Profit from discontinued operations after exceptional items: ₹0.12 lakh before tax

Balance Sheet Position (as of September 30, 2026)

  • Total Assets: ₹9,019.70 lakh
  • Property, plant and equipment: ₹49.98 lakh
  • Capital work in progress: ₹6.11 lakh
  • Investment property: ₹7,844.71 lakh
  • Cash and cash equivalents: ₹226.06 lakh
  • Other Bank Balances: ₹502.89 lakh
  • Equity Share Capital: ₹550.00 lakh
  • Other Equity: ₹4,478.71 lakh
  • Total Equity: ₹5,028.71 lakh
  • Borrowings: ₹1,137.75 lakh (₹903.13 lakh non-current + ₹234.62 lakh current)
  • Lease Liabilities: ₹292.84 lakh (₹255.79 lakh non-current + ₹37.05 lakh current)

Cash Flow Statement (Half Year Ended September 30, 2026)

  • Net cash flow from operating activities: ₹226.66 lakh
  • Net cash flow from investing activities: ₹41.88 lakh
  • Net cash flow from financing activities: ₹(166.77) lakh
  • Net decrease in cash and cash equivalents: ₹101.78 lakh

Key Notes and Disclosures

1. The financial results were reviewed by the Audit Committee and approved by the Board on November 5, 2026, with limited review by statutory auditors CSK Prabhu and Co LLP

2. The Company has complied with the new Labour Codes effective from November 21, 2025, which currently do not have material impact on financial results

3. During Q4 FY26, the Company entered into a Joint Venture Agreement for development of its land at Puliakulam, Coimbatore. As of September 30, 2026, the property continues to be recognized as Investment property with no gain/loss recognized

4. Other income primarily consists of interest income of ₹17.66 lakh for H1 FY27

5. The Company's main business segments are "Textiles" (discontinued) and "Rental services" (continuing)

Auditor's Review

CSK Prabhu and Co LLP conducted a limited review and concluded that nothing has come to their attention that causes them to believe that the Statement contains any material misstatement. The review was conducted in accordance with SRE 2410 issued by ICAI.