Sri Nachammai Cotton Mills Announces Unaudited Financial Results for Q3 2026; Loss Reported Amid Market Disparity

Sri Nachammai Cotton Mills Announces Unaudited Financial Results for Q3 2026; Loss Reported Amid Market Disparity​

Sri Nachammai Cotton Mills Ltd. has reported its unaudited financial results for the quarter ended June 30, 2026, revealing a net loss while citing challenges in yarn demand and cost management as key operational factors. The company reviewed these results at a board meeting held on August 11, 2026.

The financial performance figures, reported in Lakhs (except Earnings per Equity), reflect the industry volatility observed during the quarter. Total revenue stood at 1,294.59, against total expenses of 1,307.86, resulting in a profit/(loss) for the period of (14.75).

Key financial data from the quarterly reporting period is summarized below:

Operational Status and Cost Management​

The company noted that the current quarter faced poor demand for yarn, marked by a disparity between cotton prices and yarn prices. Consequently, only one unit was operated across three shifts during this period, which was reflected in the depreciation expense allocation.

In terms of cost management, power and fuel expenses decreased to 86.23 lakhs for the quarter ended June 30, 2026, down from 143.50 lakhs in the corresponding quarter of the previous year. This reduction is attributed primarily to the self-consumption of electricity generated from the company's solar power plant and various efficiency enhancement measures implemented across operations.

The company’s primary business activity remains the manufacture and sale of yarn-related products, with no separate reportable operating segments as per Ind AS 108.

Financial Adjustments and Equity Details​

Notes accompanying the results detail a significant accounting adjustment related to redeemable preference shares issued to promoters in April 2012. Following approval from preference shareholders in September 2024, the redemption period was extended by seven years. This modification was assessed under Ind AS 109 to warrant derecognition of the existing liability and recognition of a new financial liability at fair value. The excess carrying value over the present value of the new liability, amounting to Rs. 6,58,87,787/-, was recognized as income in the profit and loss account for the quarter ended June 30, 2025, and consequently for the year ended March 31, 2026.

As of the period reported, the company's paid-up equity share capital stands at 428.64 lakh with a face value of Rs. 10/- per share. Earnings Per Equity Share (for continuing operations) for the quarter ended June 30, 2026, were calculated at (0.34).

Corporate Action and Future Outlook​

The company announced that its 46th Annual General Meeting is scheduled to be held on September 25, 2026, through Video Conferencing. To close the Register of Members and Share Transfer Books for this meeting, a period has been set from September 19, 2026, to September 25, 2026 (inclusive). The cut-off date for determining eligibility for remote e-Voting is September 18, 2026.

Stock Price Movement​

As of 12:59, Sri Nachammai Cotton Mills Ltd. shares are gaining strongly at ₹30.80, following a healthy rise of 6.39%. The stock traded with volatility throughout the day, fluctuating between an intraday low of ₹30.80 and a high marked at ₹32.85.