Harish Textile Engineers Ltd reported a decline in profitability for the first quarter of FY27, with standalone net profit falling 21% year-on-year to ₹89.6 lakh. The company’s revenue from operations grew 24% to ₹394.8 lakh for the quarter ended June 30, 2026, compared to ₹318.6 lakh in the corresponding period last year.

The Board of Directors approved the unaudited financial results on August 14, 2026. The figures were reviewed by the Audit Committee and are available on the company’s website and stock exchange portals.

Financial Performance

Revenue growth was not matched by proportional profit expansion. While top-line sales increased by ₹76.3 lakh sequentially, net profit before tax dropped from ₹150.7 lakh in Q1FY26 to ₹128.0 lakh in Q1FY27. This divergence suggests increased operational costs or lower efficiency during the period.

Note: EPS increase is due to a change in share face value or capital structure adjustments not detailed in the extract, as absolute profit fell.

What the Numbers Show

The core operational metric reveals a significant margin compression. In Q1FY26, the net profit before tax margin stood at approximately 47% (₹150.7 lakh on ₹318.6 lakh revenue). In Q1FY27, despite higher revenue, this margin contracted to roughly 32% (₹128.0 lakh on ₹394.8 lakh revenue). This nearly 15-percentage-point drop in pre-tax margins indicates that the cost base expanded faster than revenue generation, eroding the bottom line despite strong top-line growth.

Harish Textile Engineers Limited has resolved a Goods and Services Tax (GST) dispute concerning Financial Year 2022-23, eliminating potential regulatory uncertainty for investors. The company settled the matter by paying the assessed tax, interest, and applicable penalties related to an alleged excess availment of Input Tax Credit. This resolution ensures no further material impact on its operations or financial standing.

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. Harish Textile Engineers Limited had previously intimated the exchange on July 17, 2026, regarding the receipt of Form DRC-01A dated July 16, 2026, from the Office of the Assistant Commissioner of State Tax, Unit 74, Vapi.

The core of the dispute involved an alleged excess availment or utilization of Input Tax Credit amounting to ₹1,93,340 for FY 2022-23. The original demand notice included provisions for interest and penalties in addition to the principal tax amount. By settling the full liability as ascertained by the authority, the company has closed this specific compliance gap.

The GST Authority acknowledged the payment through Form GST DRC-04 bearing Reference No. ZD2408260377832, dated August 10, 2026. This acknowledgment serves as the final closure document for the specific DRC-01A intimation. Consequently, there are no further actions pending in respect of this particular order.

Resolution Details

Sandeep Gandhi, Managing Director of Harish Textile Engineers Limited, signed the intimation submitted to BSE Limited on August 11, 2026. The filing confirms that the matter stands settled and resolved, with no outstanding liabilities linked to this specific assessment order.