Krishna Filament Industries Limited returned to profitability in the first quarter of FY26, reporting a net profit of ₹9.75 lakh compared to a net loss of ₹1.90 lakh in the same period last year. The Board of Directors approved the unaudited financial results for the quarter ended June 30, 2026, at a meeting held on July 22, 2026. The company recorded total income of ₹12.00 lakh, driven entirely by other income, while total expenses stood at ₹2.25 lakh.

The Board recommended the appointment of M/s. VCA & Associates, Chartered Accountants (FRN No. 114414W), as the new statutory auditors to fill the vacancy arising from the expiration of the term of M/s. P R Agarwal & Awasthi at the conclusion of the upcoming Annual General Meeting (AGM). The recommendation, based on the Audit Committee's advice, proposes a tenure of two years from the conclusion of the ensuing AGM until the conclusion of the 40th AGM. M/s. P R Agarwal & Awasthi issued the Limited Review Report for the quarter.

M/s. VCA & Associates, located in Andheri West, Mumbai, provides audit and assurance services across industrial, manufacturing, and infrastructure sectors. The firm is registered with the Institute of Chartered Accountants of India. The trading window for dealing in securities by designated persons will reopen on July 25, 2026. The Board meeting commenced at 05:30 P.M. and concluded at 06:00 P.M.

Financial Performance Summary

Key Board Decisions

Krishna Filament Industries Limited reported its audited financial results for the quarter and year ended March 31, 2026, at a Board of Directors meeting held on May 16, 2026. The company recorded a net loss of ₹0.35 lakh for the full financial year, reversing a net profit of ₹0.55 lakh in the previous year. The results were prepared in accordance with Indian Accounting Standards (Ind AS) and reviewed by the Audit Committee prior to board approval.

Financial Performance: FY26 vs FY25

The company's total income for FY26 stood at ₹8.00 lakh, a decline from ₹8.56 lakh in FY25. Notably, the entire income in both years was derived from other income, with no revenue from operations recorded in either period. Total expenses increased marginally to ₹8.35 lakh in FY26 from ₹8.01 lakh in FY25, resulting in a pre-tax and post-tax loss of ₹0.35 lakh for the year. No tax expense, exceptional items, or extraordinary items were recorded in either year.

The following table summarises the key annual financial metrics:

Quarterly Performance

For the quarter ended March 31, 2026, the company reported a net loss of ₹1.66 lakh, an improvement compared to a net loss of ₹2.07 lakh in the corresponding quarter of the previous year. Total expenses for Q4 FY26 stood at ₹1.66 lakh, comprising employee benefit expenses of ₹0.60 lakh and other expenses of ₹1.06 lakh. No income from operations was recorded during any of the reported quarters.

Balance Sheet Highlights

As at March 31, 2026, the company's total assets stood at ₹71.16 lakh, marginally higher than ₹70.90 lakh as at March 31, 2025. Cash and cash equivalents improved to ₹3.97 lakh from ₹2.34 lakh in the prior year. However, total equity remained deeply negative at ₹(284.62) lakh, reflecting accumulated losses, with equity share capital of ₹778.63 lakh offset by other equity of ₹(1,063.25) lakh. Non-current borrowings remained unchanged at ₹284.65 lakh.

Cash Flow and Audit Observations

The company generated net cash inflow from operating activities of ₹1.63 lakh in FY26, compared to a net cash outflow of ₹0.16 lakh in FY25. Cash and cash equivalents at the end of FY26 stood at ₹3.97 lakh, up from ₹2.34 lakh at the beginning of the year. No cash flows from financing activities were recorded during the year. Statutory auditors M/s. P R Agarwal & Awasthi (FRN: 117940W) issued an unmodified audit opinion on the standalone financial statements for the year ended March 31, 2026, and confirmed that the company's internal financial controls over financial reporting were operating effectively in all material respects. The auditors also noted that the company has no pending litigations impacting its financial position, no undisputed statutory dues in arrears, and has not declared or paid any dividend during the year. The trading window for dealing in the company's securities by designated persons is scheduled to reopen on May 19, 2026.