Deepak Spinners returns to profitability in FY26
Deepak Spinners Limited returned to profitability in FY26 with a net profit of ₹363.78 lakh, reversing a loss of ₹1,019.01 lakh in the previous year. Revenue from operations increased to ₹53,415.71 lakh, aided by improved sales realization and cost control. The Board did not recommend a dividend and approved the re-appointment of the Chairman and Managing Director.
*this image is generated using AI for illustrative purposes only.
Deepak Spinners Limited returned to profitability in the financial year ended March 31, 2026, reporting a net profit of ₹363.78 lakh compared to a net loss of ₹1,019.01 lakh in the previous year. The company’s revenue from operations rose to ₹53,415.71 lakh from ₹52,406.66 lakh in FY25, driven by improved sales realization and effective control over operating expenses. Total comprehensive income for the year stood at ₹427.31 lakh, a significant turnaround from the negative comprehensive income of ₹996.64 lakh recorded in the prior year.
Financial Performance
The company’s profit before tax for FY26 was ₹482.59 lakh, a substantial improvement from the loss before tax of ₹1,396.92 lakh in FY25. This recovery was supported by a reduction in finance costs, which decreased to ₹273.99 lakh from ₹376.53 lakh, and a slight decline in depreciation and amortization expenses to ₹1,698.85 lakh from ₹1,755.06 lakh. The board attributed the turnaround to higher operating profitability and better cost control.
| Financial Metric (Rs. in Lakhs) | FY26 | FY25 |
|---|---|---|
| Revenue from Operations | 53,415.71 | 52,406.66 |
| Profit Before Tax | 482.59 | (1,396.92) |
| Net Profit/(Loss) | 363.78 | (1,019.01) |
| Total Comprehensive Income | 427.31 | (996.64) |
Operational Highlights and Capital Expenditure
During the year, the company focused on resource optimization and sustainable infrastructure. A 4 MW solar power plant at the Guna unit, commissioned in FY25, completed its first full year of operations, contributing to energy self-reliance and cost savings. To address rising power costs at the Baddi plant, the company installed a 2.976 MW solar power plant in FY26. Additionally, capital work-in-progress increased significantly to ₹802.77 lakh from ₹33.89 lakh, primarily due to ongoing installation of new machines and solar plants.
Corporate Governance and Board Decisions
The Board of Directors decided not to recommend any dividend for FY26, prioritizing the company’s financial position and future growth plans. The board approved the re-appointment of Shri Yashwant Kumar Daga as Chairman and Managing Director for a period of five years effective from December 23, 2026. The company also appointed M/s. Shakti K. & Associates as Cost Auditors for FY27, subject to shareholder ratification. The statutory auditors, M/s. Salarpuria & Partners, confirmed that their report contained no reservations or adverse remarks.
Historical Stock Returns for Deepak Spinners
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.72% | +1.19% | +7.49% | +19.97% | -2.47% | -66.80% |
How will the significant increase in capital work-in-progress impact production capacity and revenue growth in the coming fiscal year?
What is the expected timeline for the completion of the new machines and solar plants, and when will they start contributing to the bottom line?
Will the company continue to prioritize reinvestment over dividend payouts in the near future to sustain this profitability trend?
18
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
