Eurotex Industries Posts Q2 Loss of 131.27 Lakhs Amid Segment Review and Legal Matters
Eurotex Industries and Exports Limited announced that its Board of Directors approved the Unaudited Financial Results for the quarter ended June 30, 2026. The results highlight significant financial strain across the company while also noting ongoing legal efforts regarding electricity disputes.The company reported a loss of 131.27 lakh rupees for the period in the current quarter. For the quarter ending June 30, 2026, total revenue stood at 1.85 lakh rupees. Total expenses for the quarter amounted to 75.08 lakh rupees, leading to a profit or loss before tax of (139.22) lakh rupees.
The financial statements were reviewed by independent auditors, who issued a report on the results based on the Standard on Review Engagements (SRE) 2410.
Segment Performance Snapshot
Eurotex Industries operates in two business segments: Yarn and Real Estate development, both of which are located in India and meet IND AS-108 requirements.The segment reporting details for the quarter ended June 30, 2026, are presented below:
| Particulars | Textiles (Yarn Segment) | Real Estate Development | Total Income |
|---|---|---|---|
| Segment Revenue | 1.85 lakh | - | 1.85 lakh |
| Profit/(Loss) before Tax | (139.22) lakh | N/A | (139.22) lakh |
The company's financial position, as presented in the segment reporting structure, is detailed further:
| Financial Metric (Rs. in Lakhs) | Q ended 30/06/2026 (Unaudited) | Q ended 31/03/2026 (Audited) | Q ended 30/06/2025 (Unaudited) | Year ended 31/03/2026 (Audited) |
|---|---|---|---|---|
| Total Revenue | 1.85 | 0.56 | 4.43 | 10.83 |
| Total Income | 53.20 | 4263.43 | 64.88 | N/A |
| Total Expenses | (75.08) | (134.28) | (219.38) | 743.26 |
| Profit/(Loss) before Tax | (139.22) | (134.28) | (119.10) | (215.15) |
Going Concern and Litigation Update
The Limited Review Report highlighted several key points regarding the company’s financial stability and ongoing legal challenges.Going Concern Basis: The financial results have been prepared on a going concern basis, despite the erosion of net worth. This assessment is based on the management's plan to undertake further development of available land area in Kolhapur in the near future. Operations at the manufacturing plants in Kolhapur have been discontinued since March 25, 2019. Management has reportedly settled all dues to lender banks by borrowing from promoter group companies.
Electricity Dispute: The report noted a matter regarding wrongly demanded electricity charges amounting to Rs. 1680.26 lakhs and electricity duty on CPP generation amounting to Rs. 305.54 lakhs for earlier years. Although the Supreme Court ruled against the Company in its Orders dated July 24, 2026, and March 25, 2026, the company is filing review petitions before the Hon'ble Supreme Court against these Orders. The management expects a favorable decision based on expert legal opinions citing prior favourable orders from MERC and APTEL regarding electricity charges and High Court rulings concerning electricity duty in similar matters. Accordingly, no liability provisioning was considered necessary for these charges or interest.
Additional Notes
The company reports that it has two reportable business segments: Yarn and Real Estate development. Segment assets include property, plant and equipment, trade receivables, inventories, and other operating assets. Common assets and liabilities that cannot be allocated to any specific segment are shown as unallocable assets/liabilities.EUROTEXIND Stock Price Movement
On Friday, EUROTEXIND shares edged higher to close at ₹13.37, having gained 1.98%. The stock saw total activity marked by a traded volume of 1,376 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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