Himatsingka Seide Q1 Results: Net profit falls 54% YoY to ₹4.99 crore

Himatsingka Seide reported a consolidated net profit of ₹4.99 crore for the quarter ended June 30, 2026, marking a significant decline from ₹10.90 crore recorded in the corresponding period of FY25. Consolidated revenue from operations stood at ₹6,213.03 crore, slightly lower than the ₹6,569.36 crore logged in Q1FY26.

The textile manufacturer’s standalone net profit fell to ₹5.18 crore from ₹5.75 crore year-ago, while standalone revenue declined to ₹4,601.19 crore from ₹5,038.41 crore. Despite the dip in top-line growth, the company managed to contain cost pressures through operational efficiencies and accounting adjustments.

Financial Performance Overview

The Group’s total income decreased to ₹6,343.21 crore from ₹6,610.20 crore in Q1FY25, driven by a sharp contraction in other income to ₹13.02 crore from ₹40.85 crore. Total expenses also contracted to ₹6,261.75 crore from ₹6,466.96 crore, primarily due to lower finance costs and depreciation charges.

Metric:	Q1FY27 (Consolidated):	Q1FY26 (Consolidated):	Change:
Revenue from Operations:	₹6,213.03 crore	₹6,569.36 crore	-5.4%
Other Income:	₹13.02 crore	₹40.85 crore	-68.1%
Total Expenses:	₹6,261.75 crore	₹6,466.96 crore	-3.2%
Profit Before Tax:	₹8.15 crore	₹14.32 crore	-43.1%
Net Profit After Tax:	₹4.99 crore	₹10.90 crore	-54.2%

Standalone figures showed a similar trajectory, with profit before tax settling at ₹8.42 crore against ₹8.84 crore in the prior year period. Tax expense remained stable at ₹3.29 crore on a consolidated basis, benefiting from deferred tax credits.

What the Numbers Show

A key factor supporting the bottom line was a reduction in depreciation expense by ₹51.20 lakh, resulting from the reassessment of useful lives for certain property, plant, and equipment. This accounting estimate change was applied prospectively, lowering the quarterly depreciation charge to ₹29.35 crore from ₹38.35 crore in Q1FY25. Finance costs also eased to ₹63.83 crore from ₹72.08 crore, reflecting improved debt management or lower interest rates.

However, the decline in other income—dropping nearly 68% year-on-year—significantly impacted overall profitability. While operational revenues held up reasonably well, the lack of non-operating gains weighed heavily on the final profit figure. The company continues to operate in a single segment, textiles, as per Ind AS 108 disclosures.

Auditor Review and Governance

The unaudited consolidated and standalone financial results were reviewed by statutory auditors M S K A & Associates LLP, who issued an unmodified conclusion. The Board of Directors, including Executive Chairman Dinesh Kumar Himatsingka and Executive Vice Chairman & Managing Director Shrikant Himatsingka, approved the results in a meeting held on August 12, 2026. The figures for the quarter ended March 31, 2026, are balancing amounts derived from audited full-year data.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.20%	-6.03%	-14.53%	-31.35%	-36.61%	-68.35%

Himatsingka Seide Limited has completed the allotment of Tranche 3 Series E Non-Convertible Debentures (NCDs) aggregating ₹12.50 crore, securing debt capital through a private placement to eligible investors. The allotment, finalized on July 31, 2026, involves the issuance of 250 debentures, each with a face value of ₹5,00,000, issued at par. This financing instrument carries a coupon rate of 11.50% per annum, payable quarterly, and is structured as an unlisted, senior, secured, unrated, redeemable, taxable, and transferable security.

The transaction was executed in compliance with Regulation 30 read with Part-A of Schedule III and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also referenced SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, for disclosure requirements. The Securities Committee of the Board of Directors approved the allotment, which follows a previous intimation dated July 10, 2026.

Key Terms of the Issue

The Tranche 3 Series E Debentures are designed with a specific repayment schedule and security structure to mitigate investor risk. The principal amount will not be repaid in a single lump sum but rather in three distinct installments. Interest payments remain consistent throughout the tenure.

Particulars	Details
Total Amount	₹12.50 crore
Coupon Rate	11.50% p.a., payable quarterly
Tenure	42 months from deemed date of allotment
Date of Allotment	July 31, 2026
Date of Maturity	January 31, 2030
Listing Status	Unlisted
Credit Rating	Unrated
Security Type	Senior, Secured

Principal repayment is scheduled at the end of 30 months, 36 months, and 42 months respectively. In the event of a delay in payment of interest or principal for more than three months from the due date, a penalty of 2% applies. There are no special rights, interests, or privileges attached to these instruments beyond the standard terms.

Security and Collateral Structure

The debentures are backed by substantial collateral, providing multiple layers of security for investors. The primary security includes a first pari passu charge by way of a registered/equitable mortgage and a deed of hypothecation over the entire immovable and moveable fixed assets of Himatsingka Seide Limited. These assets encompass both present and future holdings located at the company’s manufacturing plants in Hassan and Doddaballapur, Karnataka.

Additional security measures include a negative lien over land admeasuring 4.85 acres located at Sy No. 25, 17/1, 17/2 & 23 at the Hassan manufacturing facility. Furthermore, an exclusive charge has been created over the Subscription Escrow Account. The security package is reinforced by a Demand Promissory Note and a Letter of Continuity. No letters or comments regarding non-payment of interest or principal were recorded in relation to this issue.

What the Numbers Show

The issuance of unrated, secured debt at an 11.50% coupon rate reflects the company’s strategy to raise capital without diluting equity or relying on public market listings for these specific instruments. The structured repayment plan—splitting principal repayment across three milestones (30, 36, and 42 months)—reduces the immediate liquidity burden at maturity compared to a bullet repayment structure. By leveraging fixed assets at its key Karnataka manufacturing hubs as collateral, Himatsingka Seide Limited has been able to secure funding while maintaining its operational asset base, indicating a reliance on tangible asset strength rather than credit ratings to attract eligible private investors.