Ashnoor Textile Mills reported a 46.85% decline in net profit after tax (PAT) to ₹8.48 crore for the financial year ended March 31, 2026. The textile manufacturer cited unprecedented tariff-related disruptions in exports to the United States as the primary driver of the downturn. Operating income contracted by 36.34% to ₹113.61 crore, reflecting the significant impact of US trade policies on its principal export market.

Despite the challenging external environment, the company maintained adequate liquidity and exercised disciplined cost control. The Board of Directors did not recommend a dividend for FY26, opting to retain earnings to support future growth and navigate the current trade volatility.

Financial Performance

The decline in profitability was broad-based, with operating income falling from ₹178.48 crore in FY25 to ₹113.61 crore in FY26. Other income also witnessed a sharp reduction, dropping by nearly half to ₹2.79 crore from ₹5.70 crore in the previous year. Total income for the year stood at ₹116.40 crore, down significantly from ₹184.17 crore.

Export realizations on a Free On Board (FOB) basis declined to ₹81.70 crore from ₹90.29 crore in FY25. However, net foreign exchange earnings remained robust at ₹79.75 crore, supported by lower foreign currency expenditures on stores, spares, and travel.

What the Numbers Show

A key divergence in the results is the resilience of the operating profit ratio despite the steep revenue decline. While revenue fell by over one-third, the operating profit ratio improved marginally to 14.79% from 13.55% in the prior year. This suggests that fixed cost absorption and disciplined expense management helped cushion the impact of lower volumes, even as variable costs scaled down with production.

Balance Sheet and Outlook

The company’s balance sheet remains strong, with total assets at ₹164.30 crore. Current assets increased slightly, driven by higher investments and cash balances, while current liabilities decreased due to reduced borrowings and trade payables. The debt-equity ratio improved to 0.59 from 0.74 in FY25, indicating a deleveraging trend.

Management expects the outlook for FY27 to be comparatively better as the market absorbs the initial tariff shock. The company anticipates a gradual normalization of export flows and a recovery in operating margins, supported by its strong financial position and established export capabilities.

Ashnoor Textile Mills reported a net profit of ₹9.9 crore for the quarter ended June 30, 2026, up 113% from the ₹4.6 crore recorded in the same period last year. The company’s revenue from operations declined 14% year-on-year to ₹34.2 crore, down from ₹39.8 crore in Q1FY26.

The substantial rise in profitability was primarily driven by a sharp increase in other income, which jumped to ₹8.3 crore from ₹2.2 crore in the prior year. This non-operating gain more than compensated for the contraction in operational revenues and helped expand the net profit margin to 30.67%, compared to 11.48% in Q1FY25.

Financial Performance Overview

The standalone financial results for the quarter reflect a divergence between top-line growth and bottom-line expansion. While operational expenses remained relatively stable, the contribution from other income became a dominant factor in the final profit figure.

Operating margin stood at 13.95% for the quarter, an improvement from 13.08% in the corresponding period of the previous fiscal year. The company’s debt equity ratio decreased slightly to 0.56 from 0.64, indicating a modest improvement in leverage position.

What the Numbers Show

A critical observation from the filing is the disproportionate weight of other income on the final profit. Other income of ₹8.3 crore constituted approximately 84% of the total pre-tax profit of ₹11.9 crore. This suggests that the reported net profit surge is largely non-operational in nature, driven by factors outside the core terry towel manufacturing business rather than improved sales or cost efficiencies.

Balance Sheet and Ratios

The company’s current ratio improved to 2.61 from 2.08 in Q1FY26, suggesting better short-term liquidity. The interest service coverage ratio rose significantly to 13.63 from 5.61, reflecting the higher earnings base available to service interest obligations. The debtors turnover ratio remained stable at 1.15, while inventory turnover increased slightly to 0.57 from 0.66.

The results were reviewed by the Audit Committee and approved by the Board of Directors on August 12, 2026. The limited audit review was conducted by KSA & Co., Chartered Accountants.