Akshar Spintex Limited has returned to profitability in Q1FY27, reporting a net profit of ₹59.80 lakh compared to a loss of ₹123.65 lakh in the corresponding quarter of FY26. The Jamnagar-based textile manufacturer saw its revenue from operations rise by 14.3% year-on-year to ₹2,993.31 lakh, driven by higher sales volumes. The Board of Directors approved the unaudited standalone financial results on August 7, 2026, citing improved operational efficiency as a key factor in the margin recovery.

The results were reviewed by the Audit Committee and approved in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors H. B. Kalaria & Associates issued a limited review report under Standard on Review Engagements (SRE) 2410. While the financial statements were prepared in accordance with Ind AS 34, the auditors raised specific caveats regarding compliance and inventory verification that warrant investor attention.

Financial Performance Highlights

The company’s top-line growth was supported by a ₹374.51 lakh increase in revenue from operations compared to the previous year's quarter. However, this was partially offset by a sharp rise in cost of materials consumed, which jumped to ₹2,442.26 lakh from ₹2,425.68 lakh in Q1FY26. Employee benefit expenses also increased to ₹143.68 lakh from ₹135.96 lakh in the corresponding quarter of FY26.

Other income contributed ₹57.32 lakh to the total income, up from ₹50.11 lakh in Q1FY26. Finance costs remained low at ₹7.49 lakh, down from ₹12.02 lakh in the previous year, reflecting reduced interest burdens. Depreciation and amortisation expenses stood at ₹164.65 lakh.

Auditor Caveats and Compliance Issues

Despite the positive financial outcome, the independent auditor’s review report contained significant observations under “Other Matters.” H. B. Kalaria & Associates noted that the company had not made payments for certain statutory dues, specifically professional tax, during the current reporting period. Furthermore, the auditors stated they were unable to carry out necessary reviewing procedures for inventories because the company did not conduct a physical inspection during the quarter. Consequently, the auditors could not obtain sufficient appropriate evidence regarding the existence and condition of inventories.

These disclosures are material for investors assessing the quality of earnings and operational controls. The company continues to monitor the implementation of the New Labour Codes, which became effective on November 21, 2025, and will provide accounting effects based on final government clarifications.

Fund Utilization and Debt Position

Akshar Spintex confirmed no deviation in the utilization of funds raised through its right issue dated October 7, 2024, amounting to ₹4,874.81 lakh. The funds were primarily used to repay long-term unsecured loans and augment working capital. As of June 30, 2026, the company had utilised ₹320.00 lakh towards loan repayment against an allocation of ₹345.67 lakh, leaving an unutilised balance of ₹25.40 lakh. Working capital requirements were fully met with ₹3,300 lakh utilized against the same allocation.

The company’s total financial indebtedness stood at ₹306.03 lakh, comprising loans and revolving facilities from banks and financial institutions. There were no defaults on these loans or any unlisted debt securities. The paid-up equity share capital remained unchanged at ₹7,874.68 lakh, with a face value of ₹1 per share.

Akshar Spintex Limited revised its financial results for the quarter ended March 31, 2026, to rectify inadvertent clerical errors in related party disclosures and an incorrect Director Identification Number (DIN). The company reported a net loss of ₹38.97 lakh for the quarter, while revenue from operations increased to ₹3,440.02 lakh from ₹3,058.35 lakh in the same period last year. The revisions do not impact the financial statements or other material disclosures.

The company identified that the actual amount of loan and financial assistance received from directors was ₹70.00 lakh and ₹50.00 lakh, respectively. However, the initial filing submitted on May 21, 2026, erroneously reported the first loan amount as ₹700.00 lakh. Additionally, the correct DIN of Mr. Harikrishna Chauhan was confirmed as 07710106, correcting a typographical error in the Certificate of Correctness of Financial Result.

For the financial year ended March 31, 2026, Akshar Spintex reported a total income of ₹12,109.49 lakh, up from ₹11,904.70 lakh in the previous year. The company posted a net loss of ₹738.94 lakh for the year, widening from the loss of ₹444.81 lakh in FY25. Total expenses for the year stood at ₹12,919.51 lakh compared to ₹12,492.46 lakh in the prior year.

The Board of Directors approved the revised results at its meeting held on May 21, 2026. The statutory auditors, H. B. Kalaria & Associates, issued an unmodified audit opinion on the financial results. The auditors noted that they did not independently verify inventories or balance confirmations with debtors and creditors, relying on management representations.

Financial Performance Summary

Related Party Transactions

The revised filing clarified the details of loans received from directors during the period. The correct figures for the loans from Harikrishna S. Chauhan and Ilaben Paghdar were ₹70.00 lakh and ₹50.00 lakh, respectively. Both loans are unsecured, interest-free, and repayable on demand, utilized for day-to-day expenses and working capital.