Loyal Textile Mills Announces Audited Financial Results for FY 2025-26
Loyal Textile Mills Limited, a company engaged in the manufacturing of yarn, woven fabric, knitted fabric, and technical garments, has announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The company, which operates manufacturing plants at Kovilpatti, Sattur, and Cuddalore in Tamil Nadu, released the results on May 27, 2026.The company confirmed that the Board of Directors approved the audited financials for the quarter and the year ended March 31, 2026, with the statutory auditors issuing an unmodified opinion with emphasis of matter on the consolidated financial results.
Financial Performance Snapshot (INR in Lakhs)
The financial statements provide a detailed comparison of the company’s performance across the quarters and years.The consolidated financial results show the following highlights for total income:
| Metric | Quarter Ended 31.03.26 | Quarter Ended 31.12.25 | Quarter Ended 31.03.25 | Year Ended 31.03.26 | Year Ended 31.03.25 |
|---|---|---|---|---|---|
| Revenue from Operations | 8,184 | 10,414 | 13,997 | 42,196 | 62,778 |
| Other Income | 307 | 224 | 13 | 913 | 1,172 |
| Total Income | 8,491 | 10,638 | 14,010 | 43,108 | 63,950 |
The profit/loss before tax reflected significant variability, indicating the impact of exceptional items.
| Metric | Year Ended 31.03.26 | Year Ended 31.03.25 |
|---|---|---|
| Profit / (Loss) before Exceptional item | (6,258) | (11,082) |
| Exceptional Items | (372) | 6,786 |
| Profit / (Loss) before tax | (5,908) | (4,296) |
The consolidated loss for the year ended March 31, 2026, was (INR 6,501) Lakhs, while the loss for the previous year stood at (INR 4,593) Lakhs.
Assets and Liabilities Comparison
A review of the consolidated statement of assets and liabilities as at March 31, 2026, compared to the previous year, reveals notable shifts in the company’s asset structure.Total Assets recorded as at March 31, 2026, amounted to INR 52,549 Lakhs, down from INR 80,770 Lakhs as of March 31, 2025.
Key movements in Assets (INR in Lakhs):
| Particulars | As at 31.03.26 Audited | As at 31.03.25 Audited |
|---|---|---|
| Property, Plant & Equipment | 13,981 | 25,417 |
| Total Non-Current Assets | 23,911 | 31,188 |
| Inventories | 10,521 | 20,854 |
| Total Assets | 52,549 | 80,770 |
On the liability side, total liabilities stood at INR 32,157 Lakhs on March 31, 2026, compared to INR 57,271 Lakhs in the prior year. The largest liability component remains Borrowings, which reported INR 21,560 Lakhs, down from INR 41,330 Lakhs.
Operational Highlights and Exceptional Items
The company disclosed several exceptional items that impacted the financial results for the year.1. Impairment of Inventories: The consolidated results recognized an impairment charge of ₹36.46 Crores (INR 3,646 Lakhs) for inventories. This assessment was made due to changes in market conditions, tariff-related uncertainties impacting demand, geopolitical developments affecting GCC markets, and the rationalization of certain business segments, which resulted in the net realizable value being assessed as lower than the carrying cost.
2. Profit on Sale of Assets: The company reported a net gain on the sale of assets totaling ₹33.81 Crores (INR 3,381 Lakhs). This gain arose from the disposal of assets including land, windmills, and idle plant and machinery, as part of the company's asset optimization programme.
3. Gratuity Obligation: The consolidated results included an incremental gratuity obligation of ₹1.07 Crores, following the enactment of the Code on Social Security, 2020, and the consequential revision in the definition of "wages."
Strategic Outlook
The company management outlined continued efforts towards the realignment and rationalization of its manufacturing operations. The objective of these efforts is improving capacity utilization, enhancing operational efficiencies, and optimizing costs to achieve sustainable profitability. The management reported considerable progress in monetizing underutilized and non-core assets, including those classified as 'Held for Sale'. The company stated that based on the progress in operational improvement and liquidity enhancement, the management is confident of achieving sustainable operational profitability in the near future.LOYALTEX Stock Price Movement
As of 10:59 AM, LOYALTEX shares are shedding 1.80% in live trading, currently priced at ₹216.05. The stock remains substantially below its previous closing price of ₹220, despite minimal day-to-day price action observed so far.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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