Hindoostan Mills Limited has released its audited financial results for the quarter and financial year ended March 31, 2026, as approved by the Board of Directors at its meeting held on May 12, 2026 (commencing at 11:30 AM and concluding at 2:15 PM). The results were reviewed by the Audit Committee and carry an unmodified audit opinion from statutory auditors SHR & Co., Chartered Accountants. The financial year was marked by the closure of the company's Textile Division and continued operations of its Engineering Division as the sole remaining business segment.

Financial Performance Overview

The company reported a net loss of ₹662.68 lakhs for FY26, an improvement compared to the net loss of ₹1,077.34 lakhs recorded in FY25. For the quarter ended March 31, 2026, the net loss stood at ₹354.03 lakhs, against a net loss of ₹215.61 lakhs in the corresponding quarter of the previous year. Total comprehensive loss for FY26 was ₹632.90 lakhs, compared to ₹1,097.45 lakhs in FY25.

The following table summarises the key financial metrics for the year and the latest quarter (Rs. in Lakhs):

Continuing Operations

Revenue from continuing operations, comprising net sales and other operating income, declined to ₹1,449.26 lakhs in FY26 from ₹1,638.80 lakhs in FY25. Total income from continuing operations fell to ₹1,589.69 lakhs from ₹2,018.41 lakhs in the prior year, partly reflecting a significant reduction in other income, which includes fair value movements on mutual fund investments. Other income for FY26 stood at ₹140.43 lakhs versus ₹379.61 lakhs in FY25, after accounting for a fair value loss on mutual fund investments of Rs. (145.22) lakhs for the quarter ended March 31, 2026 and a net fair value gain of Rs. 31.37 lakhs for the full year ended March 31, 2026.

Total expenses from continuing operations decreased to ₹1,690.11 lakhs in FY26 from ₹1,779.08 lakhs in FY25. Employee benefits expense rose to ₹479.29 lakhs from ₹419.26 lakhs, while other expenses declined to ₹385.32 lakhs from ₹426.16 lakhs. Finance costs reduced to ₹6.61 lakhs from ₹10.95 lakhs, and depreciation and amortisation remained broadly stable at ₹152.00 lakhs versus ₹151.81 lakhs. Additionally, management assessed the impact of four Labour Codes notified by the Government of India on November 21, 2025, and made a provision of Rs. 5.37 lakhs in the results for FY26; any additional provision will be made in the period in which the liability is ascertained.

Discontinued Textile Operations

On April 15, 2025, the Board of Directors decided to close the Textile Division, citing the outlook and scenario of the textile business. The company filed an application with the Ministry of Labour, State Government of Maharashtra on April 16, 2025, and a final closure order under Section 25(O)(2) of the Industrial Disputes Act, 1947 was issued on June 19, 2025. The division has accordingly been classified as discontinued operations in accordance with Ind AS 105.

The following table presents the income and expenses of the discontinued Textile Division (Rs. in Lakhs):

Key developments related to the closure include:

• Retrenchment compensation of Rs. 158.73 lakhs paid to remaining employees of the discontinued operations.
• A provision of Rs. 112.39 lakhs made during Q4 FY26 for electricity duty including interest, following a Supreme Court order reversing an earlier Bombay High Court order in respect of electricity duty for the period April 2001 to April 2005 of the Textile Division.
• Plant and machinery and certain portions of land of the division have been classified as "Assets Held for Sale" at Rs. 568.35 lakhs as on March 31, 2026.
• An interest subsidy of Rs. 127.73 lakhs under the New Textile Policy 2012, recognised for the period October 2016 to September 30, 2019, remains outstanding as on March 31, 2026; technical issues on the Government portal have been resolved and the amount is pending processing by Government authorities, and is considered good and recoverable.
• Certain pending labour cases pertaining to the division remain, with outcomes presently unascertainable; management has stated it is confident no material liability will arise.

Balance Sheet Highlights

The company's total assets stood at ₹4,549.37 lakhs as on March 31, 2026, compared to ₹5,529.45 lakhs as on March 31, 2025. Equity share capital remained unchanged at ₹166.45 lakhs, while other equity declined to ₹3,116.18 lakhs from ₹3,749.08 lakhs. Total equity as on March 31, 2026 was ₹3,282.63 lakhs versus ₹3,915.53 lakhs in the prior year.

Cash Flow and Earnings Per Share

Net cash used in operating activities for FY26 was Rs. (953.65) lakhs, compared to net cash generated of Rs. 415.68 lakhs in FY25. Net cash generated from investing activities was Rs. 981.01 lakhs in FY26, against net cash used of Rs. (398.35) lakhs in FY25. Net cash used in financing activities was Rs. (62.15) lakhs versus Rs. (69.06) lakhs in FY25. Cash and cash equivalents at the end of FY26 stood at Rs. 136.26 lakhs, compared to Rs. 171.05 lakhs at the end of FY25.

Earnings per equity share (Basic & Diluted) for FY26 from continuing and discontinued operations combined stood at (39.81), compared to (64.72) in FY25. EPS from continuing operations alone was (6.45) in FY26 versus 14.38 in FY25, while EPS from discontinued textile operations was (33.36) in FY26 against (79.10) in FY25. The company has not created any deferred tax assets on account of uncertainty of future taxable profit. With the closure of the Textile Division, Hindoostan Mills now operates as a single-segment entity under the Engineering Division, and no segment disclosure is required.

Hindoostan Mills has notified BSE Limited of a forthcoming Board of Directors meeting, scheduled for Tuesday, May 12, 2026. The intimation has been filed pursuant to Regulation 29 read with Regulation 33 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Board Meeting Details

The following key details have been disclosed regarding the upcoming board meeting:

The Board will convene to consider, approve, and take on record the audited financial results and audited accounts of the company for the quarter and financial year ended March 31, 2026.

Trading Window Closure

In accordance with the Company's Code of Conduct for Prevention of Insider Trading, Hindoostan Mills has also disclosed the status of its trading window:

• The Trading Window is closed from April 01, 2026
• It will remain closed until the expiry of 48 hours after the financial results are declared to the stock exchanges

This closure is a standard regulatory measure aimed at preventing insider trading during the period when material financial information is being processed and disclosed.

Company Information

The intimation was signed by Kaushik N. Kapasi, Company Secretary & Compliance Officer (FCS 1479), on behalf of Hindoostan Mills. The company's registered office is located at Shivsagar Estate "D" Block, 8th Floor, Dr. Annie Besant Road, Worli, Mumbai 400018, India.