Binny Mills Limited reported a net loss of ₹1,942.66 lakh for the financial year ended March 31, 2026 (FY26), compared to a net loss of ₹1,270.55 lakh in the previous year. Despite the widening loss, revenue from operations rose significantly to ₹855.66 lakh from ₹632.18 lakh, driven largely by a net gain of ₹204.93 lakh on financial instruments measured at fair value through profit and loss. The company’s total income stood at ₹958.85 lakh against total expenses of ₹2,686.26 lakh.

The widening loss was primarily attributed to high finance costs and provisions related to pending litigations. Finance costs surged to ₹1,889.64 lakh from ₹1,266.38 lakh in the prior year, with dividend on preference shares accounting for ₹1,266.38 lakh. Additionally, the company recorded a provision of ₹36.52 lakh towards labour compensation following an award by the Additional Labour Court, Chennai, in a case involving the Chennai Perunagar Jananayaka Thozhilalar Sangam. Statutory auditors Ramesh & Ramachandran noted that while no principal repayments were made on loans to related parties, management assessed that credit risk had not significantly increased.

Segment Performance

The company operates across three divisions: Warehousing, Showrooms, and Textiles. The Warehousing division remained the primary profit center, generating a net profit of ₹262.55 lakh, marginally up from ₹261.15 lakh in the previous year. Rental income from this division decreased by approximately 6.64% to ₹270.68 lakh.

The Showrooms division turned profitable, earning a net profit of ₹5.62 lakh against a net loss of ₹2.21 lakh in the prior year. Sales from showrooms increased by approximately 26.59% to ₹184.96 lakh. Conversely, the Textiles division reported a net profit of ₹2.64 lakh, recovering from a net loss of ₹11.03 lakh, although sales declined slightly by 1.82% to ₹195.09 lakh.

Balance Sheet and Cash Flow

As of March 31, 2026, total assets stood at ₹41,999.28 lakh, down from ₹40,648.69 lakh in the previous year. Non-current assets totaled ₹17,198.05 lakh, including investment property valued at ₹15,905.49 lakh. Current assets amounted to ₹24,801.23 lakh, with cash and cash equivalents decreasing to ₹67.13 lakh from ₹71.82 lakh.

Total liabilities were ₹41,999.28 lakh, comprising non-current liabilities of ₹17,860.55 lakh and current liabilities of ₹24,138.73 lakh. The company holds 28,14,18,142 9% Cumulative Redeemable Preference Shares aggregating to ₹14,070.91 lakh, redeemable on or before May 12, 2030. Outstanding dues to creditors other than micro and small enterprises under non-current liabilities stood at ₹3,350.00 lakh.

Cash flow from operating activities resulted in a net outflow of ₹355.82 lakh, compared to an inflow of ₹2,633.53 lakh in the previous year. Investing activities generated a net cash inflow of ₹454.13 lakh, primarily from interest received and rent received. Financing activities saw a net outflow of ₹100.00 lakh due to borrowings.

Corporate Governance and AGM

The 19th Annual General Meeting is scheduled for August 31, 2026, to be held via Video Conferencing. Shareholders will vote on the re-appointment of T. Yeswanth as a non-executive non-independent director and the regularization of Dr. T. Bhasker Raj as a director. Remote e-voting will be open from August 28, 2026, to August 30, 2026. The Board did not recommend any dividend for FY26.

What the Numbers Show

A critical observation is the divergence between operational performance and bottom-line results. While the core business segments—Warehousing, Showrooms, and Textiles—collectively generated a modest operational profit, the overall financial position was heavily impacted by non-operational factors. Specifically, finance costs exceeded total revenue, indicating that the cost of servicing existing liabilities, particularly preference share dividends, outweighs the income generated from operations. This structural imbalance suggests that profitability improvements in trading or rental segments are currently insufficient to offset fixed financial obligations.

Binny Mills Limited has released its audited financial results for the quarter and year ended March 31, 2026. The company reported a net loss of ₹1,097.43 lakh for the quarter and ₹1,942.66 lakh for the full fiscal year. The Board of Directors approved these results during a meeting held on May 22, 2026, alongside other key governance decisions.

Annual Financial Performance

For the financial year ended March 31, 2026, Binny Mills recorded total income of ₹958.85 lakh, up from ₹723.78 lakh in the previous year. Revenue from operations rose to ₹855.66 lakh from ₹632.18 lakh, while other income stood at ₹103.20 lakh against ₹91.60 lakh previously. Despite the revenue improvement, total expenses surged to ₹2,686.26 lakh from ₹1,995.17 lakh, driven primarily by finance costs, which escalated to ₹1,889.64 lakh from ₹1,266.38 lakh. As a result, the loss before tax widened to ₹1,727.41 lakh from ₹1,271.39 lakh in the prior year. After accounting for total tax expenses of ₹215.25 lakh, the net loss for the year stood at ₹1,942.66 lakh, compared to ₹1,270.55 lakh in the previous year. Basic and diluted earnings per share (not annualised) were ₹(75.20) for the year, against ₹(49.18) previously.

The table below presents the detailed profit and loss statement for the year:

Quarterly Results

In the quarter ended March 31, 2026, Binny Mills reported total income of ₹433.12 lakh, with net sales and income from operations at ₹407.46 lakh — a significant rise from ₹171.05 lakh in the same quarter of the previous year. Total expenses for the quarter stood at ₹1,354.48 lakh, with finance costs alone amounting to ₹939.84 lakh. The quarterly net loss was ₹1,097.43 lakh, compared to ₹288.02 lakh in the corresponding quarter of the prior year.

The following table summarises the quarterly financial figures:

Balance Sheet Highlights

As of March 31, 2026, Binny Mills' total assets stood at ₹17,198.05 lakh, down from ₹17,789.89 lakh in the previous year. Investment property remained the largest asset at ₹15,905.49 lakh, while cash and cash equivalents declined to ₹297.01 lakh from ₹380.93 lakh. On the liabilities side, total equity reflected a negative balance of ₹24,801.23 lakh, worsening from ₹22,858.79 lakh, while borrowings stood at ₹14,470.91 lakh. Other financial liabilities under current liabilities were ₹23,975.06 lakh.

Cash Flow Summary

For the year ended March 31, 2026, net cash used in operating activities was ₹355.82 lakh, compared to net cash generated of ₹2,633.53 lakh in the prior year. Net cash from investing activities was ₹451.13 lakh, while net cash used in financing activities was ₹100.00 lakh. Cash and cash equivalents at the end of the year stood at ₹67.13 lakh, compared to ₹71.82 lakh at the beginning of the year.

Board Decisions and Internal Audit Appointment

Alongside the financial results, the Board approved the appointment of M/s T Balaji and Associates, Chartered Accountants (FRN: 014113S), Chennai, as Internal Auditor for the financial year 2026-2027. The firm brings approximately 16 years of experience across internal audit, statutory audit, and tax audit services. The board meeting commenced at 11.30 A.M. and concluded at 12.40 P.M. on May 22, 2026.

Auditor's Observations

The financial statements were audited by Ramesh and Ramachandran, Chartered Accountants (FRN: 002981S), Chennai, who issued an unmodified opinion. The auditors drew attention to several emphasis of matter points, including a loan extended to a related party during the year aggregating to ₹1.50 crores, with the outstanding balance at ₹7.69 crores, accounted for under the amortised cost method per Ind AS 109. The auditors noted that no impairment provision was considered necessary based on management's assessment of credit risk. Additional emphasis was placed on contingent liabilities arising from the demerger of erstwhile Binny Limited, a provision of ₹28.05 lakh for possible rent and damages relating to a Bengaluru showroom dispute decided in the company's favour, and a labour court award of ₹36.52 lakh against which the company has filed a stay while maintaining a provision in its books.