Kakatiya Textiles reports net loss of ₹502 lakh in FY26
Kakatiya Textiles Limited posted a net loss of ₹502 lakh for FY26, a sharp reversal from the ₹133 lakh profit recorded in FY25, as revenue from operations fell to ₹3145 lakh. Total expenses rose to ₹3807 lakh, driven by higher material and power costs, while borrowings surged to ₹3623 lakh. The Board accepted the resignations of CFO Mr. Hari Obula Reddy Velicherla and Manager Mr. Siva Prasad Vank, appointing Mr. Atmakuri Rama Guravaiah and Mr. Bandlamudi Sunil Babu to their respective roles effective May 30, 2026.
*this image is generated using AI for illustrative purposes only.
Kakatiya Textiles Limited reported a net loss of ₹502 lakh for the financial year ended March 31, 2026, compared to a net profit of ₹133 lakh in the previous year. The company's revenue from operations for FY26 stood at ₹3145 lakh, down from ₹3371 lakh in FY25. For the quarter ended March 31, 2026, the company recorded a net loss of ₹157 lakh on a revenue of ₹1199 lakh. The Board approved the audited financial results for the fourth quarter and financial year ended March 31, 2026, during a meeting held on May 30, 2026.
Financial Performance
The company's total expenses for FY26 increased to ₹3807 lakh from ₹3245 lakh in the previous year. Key expense drivers included the cost of material consumed at ₹1772 lakh and power and fuel costs at ₹579 lakh. The company reported exceptional items of ₹153 lakh for the year, primarily comprising a surcharge and interest waiver on power charges amounting to ₹103 lakh for the quarter ended March 31, 2026, and ₹50 lakh for the year ended March 31, 2026 related to the profit on the sale of old machinery.
Balance Sheet and Cash Flows
The total assets of the company as of March 31, 2026, were ₹4146 lakh, while total equity and liabilities stood at ₹4146 lakh. The company reported negative reserves of ₹2364 lakh. Borrowings increased significantly to ₹3623 lakh from ₹1534 lakh in the previous year. Cash and cash equivalents improved to ₹70 lakh from ₹36 lakh at the end of the previous year. Net cash generated from operating activities was negative at ₹2299 lakh, while the company raised ₹2089 lakh from borrowings during the year.
Management Changes
The Board took note of the resignation of Mr. Hari Obula Reddy Velicherla as Chief Financial Officer and Mr. Siva Prasad Vank as Manager, effective May 30, 2026. Consequently, the Board appointed Mr. Atmakuri Rama Guravaiah as the new Chief Financial Officer and Mr. Bandlamudi Sunil Babu as Manager, effective from the same date. Mr. Atmakuri Rama Guravaiah brings over 15 years of experience in accounts and finance, while Mr. Bandlamudi Sunil Babu has 20 years of experience in the spinning industry.
Auditor and Regulatory Compliance
The Statutory Auditors, M/s. Brahmayya & Co., Chartered Accountants, issued an unmodified opinion on the audited financial results. The financial results were reviewed by the Audit Committee and approved by the Board of Directors. The company also submitted a declaration pursuant to SEBI circular no. CIR/CFI/CMD/56/2016 dated May 27, 2016, confirming the unmodified opinion.
Key Financial Metrics for FY26
| Metric | FY26 (₹ in Lakhs) | FY25 (₹ in Lakhs) |
|---|---|---|
| Revenue from operations | 3145 | 3371 |
| Total Income | 3152 | 3378 |
| Total Expenses | 3807 | 3245 |
| Net Profit / (Loss) | (502) | 133 |
| Earnings per share (Basic) | (8.68) | 2.31 |
Historical Stock Returns for Kakatiya Textiles
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | +2.87% | +1.79% | -35.66% | -45.92% | +1,410.94% |
How does the company plan to manage the significant increase in borrowings given the negative operating cash flows?
What specific cost-cutting measures will be implemented to address the rising power and fuel expenses?
Will the new management team outline a turnaround strategy to reverse the negative reserves trend?
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