Garment Mantra Lifestyle reported a consolidated net profit of ₹279.01 lakh for the quarter ended June 30, 2026, marking a recovery from a loss of ₹491.69 lakh in the preceding quarter. The result represents a 12.8% increase compared to the net profit of ₹247.31 lakh recorded in Q1FY25. This turnaround signals improved operational efficiency and revenue generation in the opening quarter of FY26.

The Board of Directors approved the unaudited standalone and consolidated financial results on July 28, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory Auditors Balaji & Thulasiraman issued an unmodified limited review report on the financial statements. Additionally, the Board appointed Mr. B. Venkateswar as the Cost Auditor for the financial year 2026-27.

Consolidated revenue from operations surged to ₹6,197.24 lakh in Q1FY26, up significantly from ₹3,716.10 lakh in the same period last year. Total income, including other income of ₹497.17 lakh, reached ₹6,694.41 lakh. In contrast, standalone revenue from operations declined slightly to ₹2,013.39 lakh from ₹2,118.00 lakh in Q1FY25, while standalone net profit fell to ₹103.14 lakh from ₹201.22 lakh year-on-year.

The company’s paid-up share capital increased to ₹5,782.10 lakh following the receipt of final call money on partly paid-up rights equity shares allotted in May 2026. The Rights Issue Committee also forfeited 1,40,55,863 partly paid-up equity shares due to non-payment of call monies by shareholders.

What the Numbers Show

The divergence between consolidated and standalone performance highlights the contribution of subsidiaries Hylex Fashions Private Limited and Twenty Twenty Trading LLP. While the parent entity saw a contraction in both revenue and profit, the consolidated group benefited from robust top-line growth and higher other income. The consolidated other income of ₹497.17 lakh was substantially higher than the standalone figure of ₹135.59 lakh, indicating significant non-operating gains or intercompany adjustments at the group level that bolstered the bottom line despite moderate operational margins.

The Board of Directors of Garment Mantra Lifestyle approved the withdrawal of its capital contribution in Twenty Twenty Trading LLP during a meeting held on July 28, 2026. The company will withdraw an investment aggregating to ₹37,000 from the limited liability partnership. This move marks the exit of the listed entity from its stake in the trading firm, with the transaction structured as a related-party deal involving a promoter group member.

The proposal was considered and approved in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with the SEBI circular dated September 9, 2015. The Board also ensured adherence to the applicable provisions of the Companies Act, 2013. The meeting commenced at 10:30 a.m. and concluded at 12:10 p.m.

Transaction Details

The withdrawal involves the disposal of the company’s interest in Twenty Twenty Trading LLP to Mrs. Shikha Aggarwal. The filing confirms that Mrs. Aggarwal belongs to the promoter group of Garment Mantra Lifestyle Limited. Consequently, the transaction falls under the category of related-party transactions. However, the company disclosed that the deal is being entered into at arm's length.

Financial Impact and Timeline

According to Annexure A of the disclosure, Twenty Twenty Trading LLP contributed no income or net worth to Garment Mantra Lifestyle Limited during the last financial year ended March 31, 2026. The figures for both income and net worth were reported as nil. Therefore, the withdrawal does not impact the company’s revenue or net worth metrics for FY26.

The agreement for the sale has not been formally entered into yet; instead, the LLP agreement is to be modified accordingly. The company expects to complete the disposal within six months from the date of the board meeting, i.e., by January 28, 2027. The consideration received for the disposal will be not less than ₹37,000.

What the Numbers Show

The negligible financial footprint of Twenty Twenty Trading LLP is evident from its zero contribution to income and net worth in FY26. This suggests that the LLP was likely dormant or inactive from a revenue-generation perspective during the last fiscal year. The decision to withdraw the ₹37,000 capital contribution appears to be a housekeeping measure to streamline the corporate structure rather than a strategic divestment driven by financial performance. Since the buyer is part of the promoter group, the transaction also facilitates internal restructuring within the promoter’s holdings without affecting external shareholders’ economic interests materially.