Adinath Textiles Limited reported a 50% decline in net profit to ₹4.50 crore for the financial year ended March 31, 2026, compared to ₹9.01 crore in the previous year, as revenue from operations remained nil. The company’s Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 26, 2026. The statutory auditors issued an unmodified opinion on the financial statements, confirming compliance with Indian Accounting Standards.

The company’s financial performance was driven solely by other income, which stood at ₹134.14 lakh for FY26, slightly lower than ₹136.10 lakh in the prior year. For the quarter ended March 31, 2026, the company reported a net loss of ₹9.25 lakh, contrasting with a profit of ₹11.76 lakh in the preceding quarter ended December 31, 2025. Total expenses for the year increased to ₹130.62 lakh from ₹124.11 lakh in FY25, primarily due to higher employee benefits and other expenses.

Financial Performance

The table below summarizes the key financial metrics for Adinath Textiles Limited for the quarter and year ended March 31, 2026:

Assets and Liabilities

The company’s total assets decreased to ₹406.25 lakh as of March 31, 2026, from ₹417.90 lakh a year earlier. Non-current assets, comprising property, plant, equipment, and investments, stood at ₹323.58 lakh. Total equity increased marginally to ₹302.18 lakh from ₹297.77 lakh, driven by a reduction in other equity losses. Current liabilities declined to ₹77.30 lakh from ₹89.28 lakh in the previous year.

Cash Flow and Segment Information

Adinath Textiles reported a net cash outflow of ₹117.96 lakh from operating activities for FY26, compared to an outflow of ₹116.81 lakh in the previous year. Investing activities generated a net cash inflow of ₹109.53 lakh, largely from rental income and the sale of investments. The company operates a single reportable segment, Textiles, and has no subsidiaries, associates, or joint ventures as of March 31, 2026.

Adinath Textiles Limited is not required to submit the Related Party Transaction Report for the half year ended March 31, 2026, following confirmation that its financial metrics remain below the thresholds specified by the market regulator. The company informed BSE Limited that its paid-up equity share capital and net worth did not exceed the limits set under Regulation 15(2) of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, triggering an exemption from certain corporate governance provisions for FY26.

According to the audited financial statements as on March 31, 2026, the paid-up equity share capital of the company stood at ₹681.44 lakh. The net worth for the same period was recorded at ₹302.18 lakh. These figures are below the regulatory threshold limits of ₹10 crore for paid-up equity share capital and ₹25 crore for net worth, which determine the applicability of regulations 17 to 27 and specific clauses of regulation 46 of the SEBI LODR Regulations.

Consequently, the provisions of Regulation 23(9) of the SEBI (LODR) Regulations, 2015, are not applicable to the company. This regulation mandates the submission of a Related Party Transaction Report, but the exemption relieves the company of this compliance requirement for the specified period. The company confirmed that it will ensure compliance with all relevant regulations within six months of the date its financial metrics cross the prescribed threshold limits in the future.

A certificate obtained from a Practicing Company Secretary, P. S. Bathla & Associates, verified the company's financial position for the previous three financial years. The certification confirms that the paid-up equity share capital has remained constant at ₹681.44 lakh since March 31, 2024, while the net worth has seen a marginal increase over the period.

Financial Metrics (₹ in Lacs)