Financial Results Overview

Standalone Performance (Amounts in Rs. Crores):

  • Revenue from operations: Rs. 569.52 (Q1 FY27) vs Rs. 561.12 (Q1 FY26)
  • Total Income: Rs. 574.63 (Q1 FY27) vs Rs. 566.78 (Q1 FY26)
  • Net Loss: Rs. 59.48 (Q1 FY27) vs Rs. 23.33 (Q1 FY26)
  • Basic & Diluted EPS: Rs. (4.19) (Q1 FY27) vs Rs. (1.64) (Q1 FY26)

Consolidated Performance (Amounts in Rs. Crores):

  • Revenue from operations: Rs. 578.36 (Q1 FY27) vs Rs. 561.43 (Q1 FY26)
  • Total Income: Rs. 582.43 (Q1 FY27) vs Rs. 566.05 (Q1 FY26)
  • Net Loss: Rs. 53.56 (Q1 FY27) vs Rs. 13.10 (Q1 FY26)
  • Basic & Diluted EPS: Rs. (3.77) (Q1 FY27) vs Rs. (0.92) (Q1 FY26)

Key Financial Metrics

Cost Structure (Standalone Q1 FY27):

  • Cost of Materials consumed: Rs. 151.96 crores
  • Purchase of Stock-in-trade: Rs. 186.21 crores
  • Employee Benefits Expenses: Rs. 43.22 crores
  • Finance Costs: Rs. 15.45 crores
  • Depreciation and Amortization: Rs. 28.60 crores
  • Other expenses: Rs. 175.77 crores

Subsidiary Performance:

4 subsidiaries reviewed by other auditors showed total revenues of Rs. 117.68 crores and total net profit after tax of Rs. 5.047 crores for the quarter ended June 30, 2026.

1 subsidiary not reviewed by its auditor had immaterial financial information below rounding off norms.

Exceptional Items

Standalone (Q1 FY27):

  • Receipt of insurance claim of Rs. 0.53 crores relating to fire at Guwahati warehouse on May 17, 2025

Consolidated (Q1 FY27):

  • Receipt of insurance claim of Rs. 0.53 crores (Guwahati fire)
  • Partial receipt of insurance claim of Rs. 7.00 crores (June 30, 2025) relating to fire at Bangladesh subsidiary plant on January 31, 2023
  • Impact for loss due to Guwahati fire: Rs. (5.07) crores (June 30, 2025)

Corporate Actions

  • Granted 1,20,000 stock appreciation rights to eligible employees under ESARP 2018, resulting in net expense of Rs. 0.09 crores during the quarter
  • 96,000 ESARs lapsed/forfeited during the quarter

Legal Matters

1. Commercial Suit: A company based in China has filed a commercial suit at Bombay City Civil Court for recovery of Rs. 6.41 crores for material supply not acknowledged as debt. The company is defending the matter and no provision has been made based on independent legal opinion.

2. Carlton Brand Dispute: Ongoing dispute with Carlton Shoes Ltd. regarding ownership and usage rights of 'Carlton' brand in India. The matter is sub-judice before Delhi High Court. The company obtained interim relief from Supreme Court (order dated January 23, 2026) to sell existing inventory under 'CARLTON' brand up to May 31, 2026. All inventory was sold by May 31, 2026, and no new inventory is being manufactured or sold under the brand pending resolution. The company continues to have global rights for the brand.

Asset Sales

  • The company completed sale of part of its non-core assets during FY26, with gain on sale reflected in exceptional items
  • Remaining non-core assets classified as 'Current Assets held for Sale' as of June 30, 2026
  • Subsequent completion of sale in July 2026 for gross consideration of Rs. 58 crores (not included in current results)

Provisions

  • Reversal of inventory provision of Rs. 12.31 crores during Q1 FY27 (standalone and consolidated)
  • Previous provisions: Rs. 93.74 crores (standalone) and Rs. 122.66 crores (consolidated) accrued during FY26

Tax Treatment

  • The company has restricted recognition of Deferred Tax Assets considering carried forward business losses and management review of business plans

Auditor Review

  • The financial results were reviewed by Price Waterhouse Chartered Accountants LLP
  • The auditors issued an unmodified conclusion stating nothing came to their attention suggesting material misstatement
  • Review conducted in accordance with SRE 2410 and SEBI circular under Regulation 33(8)