Cravatex Limited reported a consolidated net profit of ₹43.81 lakh for the quarter ended June 30, 2026, marking a return to profitability after recording a net loss of ₹136.77 lakh in the same period of FY26. This improvement coincided with a 39% year-on-year rise in consolidated revenue from operations to ₹3,222.45 lakh, up from ₹2,312.69 lakh in Q1FY26.

The Board of Directors approved the unaudited standalone and consolidated financial results on August 12, 2026. GPS & Associates served as the statutory auditors, issuing an unmodified limited review report on the statements prepared in accordance with Ind AS.

Financial Performance

Consolidated total income reached ₹3,662.63 lakh, driven by operating revenue and other income of ₹440.18 lakh. While purchase of stock-in-trade increased to ₹1,799.53 lakh, a favorable change in inventories of stock-in-trade amounting to ₹(202.36) lakh significantly reduced total expenses to ₹3,595.70 lakh.

On a standalone basis, Cravatex reported a net profit of ₹41.08 lakh, compared to ₹44.21 lakh in Q1FY26. Standalone revenue remained flat at ₹144.49 lakh. Other income contributed ₹139.64 lakh to standalone total income, which stood at ₹284.13 lakh.

What the Numbers Show

A notable divergence exists between the standalone and consolidated results regarding inventory management. While the standalone entity reported no change in inventories, the consolidated group recorded a positive adjustment of ₹202.36 lakh in the change in inventories of stock-in-trade. This favorable inventory movement was a key factor in narrowing the gap between total income and total expenses at the group level, enabling the turnaround to profit despite higher employee benefits expense (₹740.54 lakh vs ₹741.92 lakh) and other expenses (₹1,211.98 lakh vs ₹857.77 lakh) compared to the prior year quarter.

Cravatex Limited shareholders have approved a final dividend of ₹13 per equity share, representing a 130% payout for the financial year ended March 31, 2026, alongside the reappointment of Director Rajesh Batra. The decisions were ratified at the company’s 74th Annual General Meeting (AGM) held on July 31, 2026, with all three ordinary resolutions securing overwhelming support from voting shareholders.

The meeting was conducted through Video Conferencing (VC) or Other Audio Visual Means (OAVM) in compliance with Ministry of Corporate Affairs (MCA) circulars and Securities and Exchange Board of India (SEBI) regulations. Voting was facilitated by National Securities Depositories Limited (NSDL), with remote e-voting open from July 28 to July 30, 2026. Hemanshu Kapadia & Associates served as the scrutinizer for the process.

Voting Results Overview

A total of 2,037,204 votes were polled out of 2,584,160 shares held by eligible shareholders as of the record date, July 24, 2026. This represents a participation rate of 78.83% among those entitled to vote. Promoter and promoter group entities held 1,938,120 shares and voted in favor of all resolutions, while public non-institutional shareholders held 646,040 shares.

Key Resolutions Passed

The first resolution concerned the adoption of the audited financial statements for FY26, including the balance sheet, statement of profit and loss, and cash flow statement, along with the reports of the Board of Directors and auditors. This resolution passed with 99.70% affirmative votes.

The second resolution authorized the declaration of the final dividend. The ₹13 per share payout is significant for income-focused investors, marking a substantial return on capital for the fiscal year. No promoter interest was declared in this agenda item.

The third resolution involved the reappointment of Mr. Rajesh Batra (DIN 00020764), who retired by rotation and offered himself for re-election. The Board recommended his reappointment, which was approved by the shareholders with identical voting patterns to the other resolutions.

Compliance and Scrutiny

The voting process adhered to Section 108 of the Companies Act, 2013, Rule 20 of the Companies (Management and Administration) Rules, 2014, and Secretarial Standard-2 (SS-2) issued by the Institute of Company Secretaries of India. The scrutinizer confirmed that votes were unblocked in the presence of two independent witnesses, Ms. Preeti Bhangle and Ms. Diksha Gupta, ensuring procedural integrity. The notice for the AGM was dispatched on July 1, 2026, following the MCA circular dated September 22, 2025.