Akshar Spintex announced that Mr. Parshotam L. Vasoya ceased to serve as an independent director on August 22, 2026, marking the end of his tenure. The departure follows the natural expiration of his term rather than any voluntary resignation or removal.

The company filed disclosures under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and pursuant to SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. These filings confirm that Mr. Vasoya’s existing tenure concluded on August 22, 2026.

Board Composition and Succession

Akshar Spintex stated it will initiate the process to identify and evaluate a suitable candidate for appointment as an independent director. This action aims to ensure compliance with prescribed board composition requirements under the Companies Act, 2013 and SEBI listing regulations.

The company will make requisite disclosures to stock exchanges upon finalizing the new appointment. Harikrushna Shamjibhai Chauhan, Chairman cum Whole Time Director, signed the disclosure on behalf of the company.

Regulatory Details

The filing included specific details regarding the cessation event as required by Schedule III of the Listing Regulations:

The company expressed appreciation for the contributions rendered by Mr. Vasoya during his tenure. No relationships between directors or other listed entity appointments were disclosed for this cessation event.

Akshar Spintex Limited turned profitable in Q1FY26, reporting a net profit from continuing operations of ₹59.80 lakh compared to a net loss of ₹123.65 lakh in Q1FY25. The Gujarat-based spinning mill achieved this turnaround amid a 14.3% year-on-year rise in total income to ₹3,050.62 lakh, signaling early signs of recovery in its core cotton yarn segment.

The Board of Directors approved the unaudited financial results on August 7, 2026, following review by the Audit Committee. The statutory auditors conducted a limited review of the accounts, which were prepared in accordance with Ind AS 34 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

Total income for the quarter stood at ₹3,050.62 lakh, up from ₹2,668.90 lakh in Q1FY25. Total expenses decreased slightly to ₹2,946.51 lakh from ₹2,841.96 lakh in the prior year quarter, resulting in a pre-tax profit before exceptional items of ₹104.12 lakh, compared to a loss of ₹173.06 lakh previously.

The company recorded a deferred tax credit of ₹44.32 lakh in the current quarter, whereas it had incurred a deferred tax expense of ₹49.41 lakh in Q1FY25. No current tax or MAT credit was availed during the period. Earnings per share (basic) improved to ₹0.01 from a loss of ₹0.02 per share in the previous year’s corresponding quarter.

Operational Context

Akshar Spintex operates in a single segment: spinning of cotton yarn. Consequently, separate segment reporting is not applicable under Ind AS 108. The company continues to monitor the implementation of the New Labour Codes, which consolidated 29 existing legislations into four codes effective from November 21, 2025. Management stated it will provide appropriate accounting effects based on finalizations of Central/State rules and government clarifications.

What the Numbers Show

The shift from loss to profit is primarily attributable to the reversal in deferred tax impact rather than a drastic change in operational margins. While income grew by nearly ₹382 lakh, expenses also rose, keeping the operating margin thin. The ₹93.73 lakh swing in tax provisions (from an expense of ₹49.41 lakh to a credit of ₹44.32 lakh) was the decisive factor in converting the bottom line. Investors should watch whether this tax benefit is sustainable in subsequent quarters as the company navigates the new regulatory landscape.