Financial Performance Context

The operational and financial performance during the period under review was impacted primarily due to:

  • Adverse global market conditions and supply chain disruptions
  • US-centric trade tariffs since November 2025 onwards
  • Geopolitical tensions from US-Israel-Iran conflict since February 2026, disrupting global supply chains and increasing transportation and logistics costs
  • Weak demand conditions and pricing pressures in the textile and yarn industry
  • Industry-wide raw material volatility and input procurement delays

Subsidiary Restructuring

The Board made the strategic decision to cease all trading operations at its subsidiary, Yashoda Linen Yarn Limited, to prioritize the commissioning of the high-tech Ujjain manufacturing unit. This transition accounted for a planned reduction of approximately ₹27 crore in trading revenue.

Key Financial Metrics

  • Consolidated operating margin recorded at 15%
  • Consolidated borrowings reduced by ₹20 crore (30% decline)
  • Total assets grew by 64% on consolidated basis (from ~₹141 crore to ~₹232 crore)

Management Commentary

Management stated FY2026 has been "a year of disciplined execution" with intentional exit from low-margin trading to focus on manufacturing core. The company emphasizes underlying health is "better than ever" with significant debt reduction and asset growth. Management asks stakeholders to "look through this transitional revenue gap toward the massive manufacturing value we are unlocking at our new Ujjain facility." Commitment to 100% sustainable, natural fibres remains the cornerstone of global expansion.

Expansion Projects Update

Greenfield Project - Yashoda Linen Yarn Limited

The state-of-the-art facility at Vikram Udyogpuri (DMIC), Ujjain, designed for linen yarn manufacturing. The capex object has been scheduled to get completed by FY2027.

Existing Capacity Expansion - Yajur

Installation of additional production capacity at existing manufacturing facility situated at Jagannathpur, Phuleshwar, Uluberia, District Howrah, West Bengal, is progressing at full pace. The expansion projects are expected to be completed by the end of December 2026. This will lead to additional production capacity of up to 4 tons per day.

Outlook and Recovery Drivers

Management expects meaningful recovery in this financial year onwards driven by three pillars:

1. Macro Stabilization: Normalization of global trade and Middle East logistics

2. Production Ramp-Up: Commencement of subsidiary new plant at Ujjain as it moves toward production

3. Market Leadership: Sustained domestic demand where Yajur remains preferred supplier for high-end spinning and weaving mills

4. Capacity addition: The capacity expansion at existing unit of Yajur expected to commence by December 2026

Company Background

Yajur Fibres Limited operates a bast fibre cottonising unit in India situated in Howrah. The company is part of The Kankaria Group with over 80 years experience in the Jute Industry. Yajur specializes in producing premium cottonised bast fibres including flax (linen), jute, and hemp. The company cottonises long & brittle bast fibres into cotton-like short staple fibre that can blend up to 55% with cotton and man-made fibres. The company contributes 100% output to sustainability drives and is dedicated to 100% sustainable, natural & biodegradable fibres.

Forward-Looking Statements Disclaimer

The press release includes forward-looking statements based on current expectations and projections about future events, involving known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Factors include changes in local and global economic conditions, ability to successfully implement strategy, market acceptance of products, growth and expansion, technological change, and exposure to market risks.