Eastern Silk Industries Limited reported a net loss of ₹1,360.24 lakh for the financial year ended March 31, 2026, a significant decline from the net profit of ₹396.42 lakh recorded in the previous year. The company's revenue from operations for FY26 stood at ₹2,370.67 lakh, up from ₹2,185.37 lakh in the corresponding period last year. The board of directors approved the audited standalone financial results for the fourth quarter and financial year ended March 31, 2026, at a meeting held on May 27, 2026.

The statutory auditors, M/s. B K Shroff & Co, Chartered Accountants, issued an audit report with an unmodified opinion on the standalone financial results. The company reported a total income of ₹2,581.10 lakh for FY26, compared to ₹2,549.70 lakh in the previous year. Total expenses for the year increased to ₹3,270.10 lakh from ₹2,496.99 lakh in FY25. For the quarter ended March 31, 2026, the company reported a net loss of ₹1,342.24 lakh, with revenue from operations at ₹549.72 lakh.

Financial Performance

The company's financial results for the quarter and year ended March 31, 2026, reflect the impact of exceptional items and tax provisions. Exceptional items for the year amounted to ₹20.60 lakh, primarily related to the impact of new Labour Codes. The provision for deferred tax for the year was ₹650.64 lakh, compared to a reversal of ₹316.97 lakh in the previous year.

Operational Updates

The company completed the implementation of its resolution plan approved by the National Company Law Tribunal (NCLT), Kolkata Bench, as of March 31, 2026. The Successful Resolution Applicant infused the third tranche of payment, which was disbursed to financial creditors on July 23, 2025. The management is now focusing on reviving operations, expanding the product portfolio, and entering new markets.

During the year, the company wrote off inventories valued at ₹13.97 crore at the Falta Unit due to deterioration in quality and expiry of shelf life. This loss was written off in Capital Reserve. Additionally, brought forward tax losses amounting to ₹33.79 crore expired during the financial year 2025–26, leading to the reversal of the corresponding Deferred Tax Asset.

The board meeting, which commenced at 04:30 p.m. and concluded at 07:55 p.m. on May 27, 2026, was attended by Chairman & Director Ajay Bikram Singh and Whole-Time Director Sunil Kumar. The financial results have been prepared in compliance with the Indian Accounting Standards (Ind AS).

Eastern Silk Industries Limited has announced its unaudited standalone financial results for the quarter and nine months ended December 31, 2025. The Board of Directors considered and approved these results during their meeting held on February 14, 2026.

Board Meeting Details

The Board meeting was conducted with specific timing and agenda items clearly outlined:

During the meeting, the Board considered and approved the unaudited standalone financial results for the quarter and nine months ended December 31, 2025. Additionally, the Board took note of the standalone limited review auditor's report for the same period.

Auditor's Review and Compliance

B.K. Shroff & Co. Chartered Accountants conducted the limited review of the financial results. The statutory auditors issued their limited review report with an unmodified opinion, confirming compliance with applicable accounting standards and regulatory requirements.

The auditor's report was prepared in accordance with:

• Indian Accounting Standard 34 (Ind AS 34) "Interim Financial Reporting"
• Section 133 of the Companies Act, 2013
• Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Business Operations and Strategic Focus

Eastern Silk Industries Limited is primarily engaged in manufacturing silk yarn, fabrics and made-up products. The company's product portfolio includes:

• Home furnishings
• Fashion fabrics
• Handloom fabrics
• Double width fabrics
• Scarves, laces and belts
• Embroidered fabrics

The company operates as a single reportable segment, requiring no additional disclosures under Ind AS 108 Operating Segments.

Regulatory Developments

The company is currently evaluating the impact of New Labour Codes that became effective from November 21, 2025. These codes consolidated 29 existing labour regulations into four comprehensive codes:

• The Code on Wages, 2019
• The Industrial Relations Code, 2020
• The Code on Social Security, 2020
• The Occupational Safety, Health and Working Conditions Code, 2020

Due to detailed employee-wise evaluation and interpretation requirements, the quantitative impact is currently under assessment and will be recognized in due course.

Corporate Resolution Process

The company has successfully completed significant milestones in its corporate restructuring. The Successful Resolution Applicant infused the third tranche of payment, enabling the company to disburse the third tranche to financial creditors on July 23, 2025, in accordance with the resolution plan approved by the National Company Law Tribunal (NCLT), Kolkata Bench.

With all obligations under the approved resolution plan now fulfilled, management is focusing on reviving operations through strategic initiatives including expanding the product portfolio, entering new domestic and international markets, and implementing cost optimization measures to improve operational margins and drive sustainable long-term value for shareholders.