<h1>Eurotex Industries Approves Audited Financial Results for Q4 FY26, Addresses Going Concern and Legal Matters</h1>
Eurotex Industries and Exports Limited announced the approval of its audited financial results, along with the accompanying audit report, for the quarter and year ended March 31, 2026. The Board of Directors approved these results during a meeting held on May 22, 2026.
Independent auditors provided an unmodified opinion on the financial results for the quarter and year ended March 31, 2026.
Key Audit Observations
In the report, the auditors noted two critical areas concerning the Company's financial position.Emphasis of Matter: Electricity Duty
The auditors drew attention to Note 6 regarding the electricity duty liability of Rs.305.54 lakhs pertaining to earlier years. The Supreme Court, through its Order dated March 25, 2026, ruled against the Company on this matter. However, the Company intends to file a review petition before the Supreme Court through CPP Association. The auditors stated that, based on expert legal opinion and the expectation of a favorable decision, no liability provisioning has been considered necessary for the duty, interest, or penalty.
Material Uncertainty and Going Concern
The financial results have been prepared on a going concern basis. The auditors pointed out that while the Company has incurred cash losses during the current year and losses during earlier periods/years, which have eroded its entire net worth, it plans to continue operations. The manufacturing plants at Kolhapur ceased operations on March 25, 2019, with closure announced on March 30, 2022. Management has settled dues with lender banks through borrowing from promoter group companies and is planning the further development of available land area at Kolhapur.
Audited Financial Performance Summary
The audited financial statements provide a detailed view of the company's performance for the fiscal year.For the period ended March 31, 2026, the audited results show the following key figures (Rs. in Lakhs):
| Particulars | 3 Months ended 31/03/2026 (Audited) | Year to date figures for the year ended 31/03/2026 |
|---|---|---|
| Revenue from Operations | 0.56 | 10.83 |
| Total Income | 22.53 | 517.28 |
| Profit / (Loss) before tax | 177.47 | (135.66) |
| Tax Expenses | (41.42) | - |
| Profit / (Loss) for the period | (103.44) | (79.49) |
| Total Comprehensive Income | 205.48 | 182.61 |
| Paid up equity share capital | 874.02 | 874.02 |
| Earning Per Share (Basic) | (1.06) | (3,567.31) |
Segment Performance
The Company reports two business segments: Yarn and Real Estate Development. The aggregated income and segment results demonstrate the following performance:| Segment | Total Income (31.03.2026) | Total Segment Profit/(Loss) before Interest and Tax (31.03.2026) |
|---|---|---|
| Textiles (yarn segment) | 0.56 | (138.37) |
| Real Estate Development | 50.42 | 141.08 |
| Total | 517.28 (Year) | (134.28) |
The total segment assets stand at 3,106.64 (Yearly, 31.03.2026), with the textile segment contributing 2,105.69 and the real estate segment contributing 546.52 (all figures in Rs. In lakhs).
Cash Flow Highlights (Rs. in Lakhs)
The Cash Flow Statement highlights the following movement of cash and cash equivalents:| Activity | For the year ended 31-03-2026 (Audited) | For the year ended 31-03-2025 (Audited) |
|---|---|---|
| Net Cash Used in Operating Activities | (250.33) | (165.10) |
| Net Cash Generated from Investing Activities | 749.74 | 311.10 |
| Net Cash Used in Financing Activities | (488.50) | (203.35) |
| Net Increase/(Decrease) in Cash and Cash Equivalents | 10.91 | (57.35) |
| Cash and cash equivalents at the end of the year | 15.53 | 4.62 |
EUROTEXIND Stock Price Movement
On Friday, Eurotex Industries and Exports Limited shares edged higher, closing at ₹16.38 after rallying 5.47% for the session. The stock traded on a volume of 2,146 shares, finishing the period above the previous day's close of ₹15.55.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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