Filatex Fashions FY26 profit falls 70% as revenue drops

Filatex Fashions Limited reported a consolidated net profit of ₹283.21 lakh for the year ended March 31, 2026, a decline of 70% from ₹941.95 lakh in the previous year. Revenue from operations for the fiscal year stood at ₹11,544.23 lakh, down 38% from ₹18,580.78 lakh in FY25. The board approved the audited financial results for both standalone and consolidated entities during a meeting held on May 29, 2026. The company published the results in newspapers on May 31, 2026, in compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The statutory auditor, M/S KPSJ & Associates LLP, issued an unmodified opinion on the results. However, the auditor's report highlighted emphasis of matters, including long outstanding trade receivables without provision for bad debts, non-provision of gratuity liability in accordance with Ind AS 19, and the absence of an enabled audit trail feature in the company's accounting software.

Board Decisions and Governance

In addition to the financial results, the board took note of fines imposed by BSE Limited and National Stock Exchange of India Limited for non-compliance with Regulation 31A(3)(a) and Regulation 6(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company stated it is committed to strengthening its compliance framework to prevent recurrence.

Following the resignation of Mr. Dhruv Rameshbhai Chauhan, the board approved the reconstitution of several committees. Ms. Sonali Sandeep Joshi, Non-Executive Independent Director, was appointed as the Chairperson of the Audit Committee and as a member of the Nomination & Remuneration Committee, Stakeholders Relationship Committee, Corporate Social Responsibility Committee, and Independent Directors Committee.

Financial Performance

The standalone financial results reflected a similar trend, with a net profit of ₹280.49 lakh for FY26 compared to ₹937.33 lakh in the prior year. Standalone revenue from operations was ₹11,219.33 lakh, a decrease from ₹17,848.18 lakh in FY25. For the quarter ended March 31, 2026, the company reported a standalone net profit of ₹32.68 lakh and revenue of ₹2,207.79 lakh.

Metric	Standalone FY26 (₹ in Lakhs)	Standalone FY25 (₹ in Lakhs)	Consolidated FY26 (₹ in Lakhs)	Consolidated FY25 (₹ in Lakhs)
Revenue from Operations	11,219.33	17,848.18	11,544.23	18,580.78
Total Income	11,282.91	18,417.61	11,607.81	19,165.21
Total Expenses	10,910.07	17,146.99	11,231.29	17,888.35
Net Profit for the Year	280.49	937.33	283.21	941.95

The board also considered a Conciliation Report received under the Online Dispute Resolution (ODR) Mechanism regarding a dispute between the company and Mr. Bhushan Saindane. The meeting commenced at 8:00 PM and concluded at 8:30 PM on May 29, 2026.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+5.26%	-4.76%	-13.04%	-44.44%	-60.78%	-92.28%

Filatex Fashions held its Extraordinary General Meeting (EGM) on Thursday, May 21, 2026, via video conferencing to seek shareholder approval for the reclassification of certain members of the promoter group to the public category and other key business items. The meeting, chaired by Managing Director & CFO Prabhat Sethia, approved the reclassification of Mr. Prashant Kumar Sethia and Mr. Rajkumar Sethia. The applicants are brothers of Mr. Prabhat Sethia, who continues to be a promoter of the company. This change will be reflected in the shareholding pattern filed with the stock exchanges under Regulation 31 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Resolutions Passed

The shareholders approved five specific business items during the meeting. The resolutions included both special and ordinary business, addressing capital structure, fundraising, and regulatory compliance. All resolutions were passed with the requisite majority.

Sl. No.	Particulars	Resolution Type
1.	To Approve Raising of Funds by Issuance of Foreign Currency Convertible Bonds (FCCBs).	Special Resolution
2.	Increase in Authorized Share Capital of The Company and Consequential Amendment in Memorandum of Association of The Company.	Ordinary Resolution
3.	Approval of Loans, Guarantees, Securities, and Investments under Section 186(2) of The Companies Act, 2013.	Special Resolution
4.	Increase in Investment Limits for Foreign Portfolio Investors and Non-Resident Indians/Overseas Citizens of India.	Special Resolution
5.	Reclassification of Certain Persons Forming Part of The 'Promoter and Promoter Group' To 'Public' Category.	Ordinary Resolution

Reclassification of Promoters

The reclassification was subject to no-objection letters received from BSE Limited and National Stock Exchange of India Limited, both dated April 09, 2026. The applicants confirmed they do not hold more than 10% of the total voting rights, do not exercise control over the company, and are neither wilful defaulters nor fugitive economic offenders. They also confirmed they are not represented on the Board of Directors and do not act as Key Managerial Personnel.

Sr. No.	Name of Promoter/Promoter Group	No of Shares Held	% of shareholding in the Company
1	Mr. Prashant Kumar Sethia	10,40,100	0.012
2	Mr. Rajkumar Sethia	4,05,987	0.004

Voting Results

The remote e-voting facility was available from May 18, 2026, to May 20, 2026. For the resolution to reclassify the promoters, the Promoter and Promoter Group were considered interested parties. Consequently, 402,155,574 votes cast by them were treated as invalid. Despite this, the resolution was passed with 97.42% of valid votes in favour. The company stated that it would upload the detailed voting results to the website of Central Depositories Services (India) Limited.