Sarla Performance Fibers Reports Q2 Results for FY26; Audit Opinion is Qualified Amid Pending Regulatory Approvals
Sarla Performance Fibers Limited has released its unaudited financial results and a review report for the quarter ended June 30, 2026. Both the Standalone and Consolidated statements reflect a Qualified Opinion from the independent auditors. This qualification stems from the pending regulatory approvals concerning the sale of preference shares held by the company in its subsidiary, Sarla Flex Inc.The company reported various financial metrics across both segments: Yarn and Wind Power. For the quarter ended June 30, 2026, Sarla Performance Fibers recorded a Total Income of 14,112.40 (in lakhs) on a consolidated basis. The profit after tax for the same period stood at 3,728.24 (in lakhs).
The results were reviewed by independent auditors and subsequently approved by the company's Board of Directors.
Financial Highlights (Quarter Ended June 30, 2026)
The following table summarizes key unaudited financial metrics for the quarter ended June 30, 2026:| Particulars | Standalone (Unaudited Qtr) | Consolidated (Unaudited Qtr) |
|---|---|---|
| Revenue From Operations | 10,404.04 | 11,326.43 |
| Total Income | 13,188.25 | 14,112.40 |
| Total Expenses | 9,133.39 | 9,482.65 |
| Profit after Tax | 3,181.38 | 3,728.24 |
Impact of Sale Transaction on Financials
The Qualified Opinion is linked to a transaction involving the sale of 11% Non-Cumulative Redeemable Preference Shares held by the company in its wholly owned subsidiary, Sarla Flex Inc.In the consolidated financial results for the quarter and year ended March 31, 2026, this sale resulted in an Exceptional Item loss amounting to Rs 7,713.26 lakhs. The standalone financials reflected a corresponding exceptional loss of Rs 5,433.16 lakhs.
The company noted that it had applied for the necessary regulatory approvals pertaining to the said transaction, including the write-off of the loss and receipt of sale proceeds. As of June 30, 2026, an amount amounting to Rs 1,11,59,132.60 (Rs 111.59 lakhs) representing recoverable consideration from this sale is currently held under Trade Receivables. The receipts of the balance sale proceeds and the requisite regulatory approvals are yet to be received.
Segment Performance Snapshot
Sarla Performance Fibers Limited operates in two segments: Yarn and Wind Power. The segment results provide details on operational income for both sectors.| Segments | Quarter Ended 30-Jun-26 (Unaudited) |
|---|---|
| Net Sales/Income From Operations (YARN) | 10,404.04 lakhs |
| Net Sales/Income From Operations (WIND POWER) | 248.15 lakhs |
SARLAPOLY Stock Price Movement
Today, Sarla Performance Fibers Limited shares edged higher after market close, gaining 0.22% and settling at ₹102.36. The stock saw brisk trading in the session, with 52,614 shares traded.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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