Deepak Spinners returned to profitability in the first quarter of FY26, reporting a standalone net profit of ₹3.09 crore compared to a net loss of ₹3.61 crore in the same period last year. The company’s revenue from operations was ₹13,682 lakh, a marginal decline from ₹13,877 lakh in Q1FY25. This turnaround signals improved operational efficiency and cost management during the quarter ended June 30, 2026.

The Board of Directors approved the unaudited financial results on August 6, 2026, following a review by the Audit Committee. The results were submitted to BSE Limited pursuant to Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Salarpuria & Partners, Chartered Accountants, served as the statutory auditors and issued a limited review report on the financial statements.

Financial Performance Overview

Revenue from operations decreased slightly year-on-year, while other income rose significantly to ₹261 lakh from ₹59 lakh in Q1FY25. Total expenses were contained at ₹13,528 lakh, down from ₹14,418 lakh in the previous year’s first quarter. This reduction in expenses contributed directly to the profit turnaround.

What the Numbers Show

The primary driver of the profit improvement was a substantial decrease in total expenses despite a slight dip in operating revenue. In Q1FY25, the company incurred a loss before tax of ₹482 lakh; in Q1FY26, it achieved a profit before tax of ₹415 lakh. This swing of over ₹890 lakh highlights effective cost control measures. Additionally, other income increased by more than four times year-on-year, providing a notable boost to the bottom line. The earnings per share improved to ₹4.30 from a negative ₹5.02 in the corresponding period last year.

Regulatory and Operational Notes

The company operates within a single primary business segment, 'Yarn', as per Ind AS 108 'Operating Segments'. A significant item noted in the filing relates to an order dated April 28, 2026, by the Vidyut Upbhokta Shikayat Nivaran Forum, Bhopal. The forum determined an incremental consumption rebate entitlement of ₹45.13 lakhs for the company’s Discom (MPMKVYCL). Of this amount, ₹105.01 lakhs credited by the Discom during the quarter has been recognized as other income. The balance of ₹840.12 lakhs has not been recognized as its realization is probable but not virtually certain, pending clarification from MPERC.

The figures for the quarter ended March 31, 2026, are balancing figures between audited full-year figures and unaudited year-to-date figures till December 31, 2025. Previous period figures have been regrouped where necessary. The paid-up equity share capital remains unchanged at ₹719 lakh.

Deepak Spinners Limited will hold its 44th Annual General Meeting on August 13, 2026, at 4.00 p.m. through video conferencing to seek shareholder approval for the re-appointment of Shri Yashwant Kumar Daga as Chairman and Managing Director. The meeting will also consider the adoption of audited financial statements for the financial year ended March 31, 2026. The re-appointment, subject to regulatory approvals, is effective from December 23, 2026, for a five-year term concluding on December 22, 2031.

The Board of Directors approved the re-appointment of Shri Yashwant Kumar Daga (DIN: 00040632) at its meeting on May 26, 2026. He has been associated with the company since 1998 and holds 997,878 equity shares. He will not receive remuneration from Deepak Spinners Limited as he draws remuneration from M/s. Deepak Industries Limited, within the ceiling limits of Schedule V of the Companies Act, 2013. The company will reimburse expenses for boarding, lodging, and travel incurred during his duties.

Business to be Transacted

Shareholders will consider the adoption of audited financial statements for FY26 and the reports of the Board of Directors and Statutory Auditors. Shri Yashwant Kumar Daga, retiring by rotation and eligible for re-appointment, will be appointed as a Director. The special business includes the ratification of the remuneration of Cost Auditors for the financial year ending March 31, 2027. M/s. Shakti K. & Associates, Cost Accountants, have been appointed to conduct the cost audit, with a proposed remuneration of ₹75,000, excluding Goods and Services Tax and out-of-pocket expenses.

Voting and Participation Details

Remote e-voting commences on August 10, 2026, at 9:00 a.m. IST and concludes on August 12, 2026, at 5:00 p.m. IST. Shareholders holding shares as on the cut-off date of August 6, 2026, are eligible to vote. The facility for e-voting during the AGM is available only to shareholders attending via VC/OAVM who have not cast their vote via remote e-voting. The Register of Members and Share Transfer books will remain closed from August 7, 2026, to August 13, 2026, for the annual closing.