Ashnoor Textile Mills Q1 Results: Net profit up 113% YoY to ₹990 lakh
Ashnoor Textile Mills posted a 113% YoY rise in net profit to ₹9.9 crore for Q1FY27, fueled by a surge in other income to ₹8.3 crore. Revenue fell 14% to ₹34.2 crore. The net profit margin expanded to 30.67%, with other income accounting for over 80% of pre-tax profits.
*this image is generated using AI for illustrative purposes only.
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.
| Metric: | Q1FY27 | Q1FY26 | Change |
|---|---|---|---|
| Revenue from Operations: | ₹34.2 crore | ₹39.8 crore | -14.2% |
| Other Income: | ₹8.3 crore | ₹2.2 crore | +271.6% |
| Total Income: | ₹42.5 crore | ₹42.1 crore | +1.0% |
| Profit Before Tax: | ₹11.9 crore | ₹6.2 crore | +92.0% |
| Net Profit: | ₹9.9 crore | ₹4.6 crore | +113.5% |
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.
Historical Stock Returns for Ashnoor Textile Mills
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.13% | -1.74% | +19.09% | +9.74% | +2.89% | +58.91% |
What specific sources contributed to the 271% surge in other income, and are these gains likely to be sustainable in upcoming quarters?
How does the 14% decline in operational revenue impact Ashnoor Textile Mills' long-term market share and competitiveness in the terry towel sector?
Will management implement strategic initiatives to reverse the top-line contraction, or will the company continue to rely on non-operating income for profitability?
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