Dhanalaxmi Roto Spinners Q1 Results: Net profit dips 1% YoY to ₹243.98 lakh
Dhanalaxmi Roto Spinners posted a Q1FY26 net profit of ₹243.98 lakh, down 1.1% YoY, as revenue fell 7.6% to ₹7,360 lakh. Other income rose 65%, supporting margins. Debt-to-equity ratio is 1.36.
*this image is generated using AI for illustrative purposes only.
Dhanalaxmi Roto Spinners Limited reported a net profit of ₹243.98 lakh for the quarter ended June 30, 2026, marking a slight decline of 1.1% compared to ₹246.62 lakh in the same period last year. While revenue from operations contracted by 7.6% to ₹7,360.22 lakh, the company saw a significant boost in other income, which rose 65% quarter-on-quarter to ₹269.65 lakh.
The Hyderabad-based textile firm’s Board of Directors approved the unaudited financial results on August 12, 2026. The results were reviewed by statutory auditors G.D. Upadhyay & Co., who issued a limited review report confirming compliance with SEBI LODR regulations.
Financial Performance
Revenue from operations stood at ₹7,360.22 lakh for Q1FY26, down from ₹7,965.17 lakh in Q1FY25. This decline was partly offset by growth in other income, which increased from ₹163.34 lakh to ₹269.65 lakh. Total revenue for the quarter was ₹7,629.87 lakh, compared to ₹8,128.51 lakh in the previous year.
| Metric | Q1FY26 (₹ Lakh) | Q1FY25 (₹ Lakh) | Change |
|---|---|---|---|
| Revenue from Operations | 7,360.22 | 7,965.17 | -7.6% |
| Other Income | 269.65 | 163.34 | +65.1% |
| Total Expenses | 7,305.41 | 7,795.30 | -6.3% |
| Profit Before Tax | 324.46 | 333.21 | -2.6% |
| Net Profit | 243.98 | 246.62 | -1.1% |
Profit before tax decreased marginally to ₹324.46 lakh from ₹333.21 lakh in the prior year period. Tax expenses were recorded at ₹80.48 lakh, lower than the ₹86.59 lakh paid in Q1FY25. Earnings per share (basic and diluted) stood at ₹3.13, down from ₹3.16 in the corresponding quarter last year.
What the Numbers Show
A key divergence in the results is the behavior of operating costs versus other income. While purchases of stock-in-trade rose 4.8% to ₹6,974.64 lakh against a falling revenue backdrop, indicating potential inventory buildup or pricing pressures, other income more than doubled quarter-on-quarter. This surge in non-operating income helped cushion the bottom line, preventing a sharper decline in net profit despite the contraction in core operational revenue.
Balance Sheet Metrics
The company disclosed its debt metrics for the quarter ended June 30, 2026:
- Debt-to-Equity Ratio: 1.36
- Debt Service Coverage Ratio: 8.71
- Interest Service Coverage Ratio: 12.58
These ratios suggest the company maintains adequate coverage for its debt obligations, with interest service coverage remaining strong above 12x.
Historical Stock Returns for Dhanalaxmi Roto Spinners
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.11% | +0.81% | +2.27% | -8.17% | -18.40% | +71.01% |
What specific factors are driving the 7.6% decline in operational revenue, and does this indicate a broader slowdown in the textile sector or company-specific challenges?
How sustainable is the 65% surge in other income, and will management rely on non-operating gains to offset future volatility in core textile sales?
Given the rise in stock-in-trade purchases despite falling revenue, what is the company's strategy for managing potential inventory obsolescence or working capital strain?
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