Lagnam Spintex Q1 Results: Net profit surges 199% YoY

Lagnam Spintex reported a sharp recovery in profitability for the quarter ended June 30, 2026, with net profit surging 199% year-on-year to ₹5.89 crore. The textile manufacturer’s revenue from operations rose 18.4% to ₹165.86 crore, driven by robust demand in its core segment. This performance marks a significant improvement over the previous quarter, where net profit stood at ₹8.35 crore, and demonstrates the company’s ability to scale operations effectively despite rising input costs.

The Board of Directors approved the unaudited financial results during a meeting held on July 30, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, A.L. Chechani & Co., in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The trading window for equity shares remained closed until 48 hours after the declaration of these results to stock exchanges.

Financial Performance Highlights

The company’s top-line growth was supported by a strategic reduction in inventory levels, which contributed positively to the cost of materials consumed. While revenue increased significantly, total expenses rose at a slower pace, allowing margins to expand.

Metric	Q1FY27 (₹ in Lacs)	Q4FY26 (₹ in Lacs)	Q1FY26 (₹ in Lacs)
Revenue from Operations	16,585.64	17,965.02	14,010.03
Total Income	16,592.75	17,970.96	14,014.84
Total Expenses	15,696.80	16,819.74	13,740.47
Profit Before Tax	895.95	1,151.22	274.37
Net Profit After Tax	588.61	835.40	196.96
EPS (Basic)	₹3.33	₹4.73	₹1.11

Revenue from operations climbed to ₹165.86 crore in Q1FY27, up from ₹140.10 crore in the same period last year. Other income saw a modest increase to ₹0.07 lakh, compared to ₹0.05 lakh in Q4FY26. The company’s total income for the quarter reached ₹165.93 crore.

What the Numbers Show

A key driver of the improved bottom line was the favorable movement in inventory changes. The company recorded a negative change in inventories of finished goods, stock-in-trade, and work-in-progress amounting to ₹60.13 lakh, indicating that it sold more than it produced or purchased, thereby reducing current period costs. In contrast, Q4FY26 saw a positive inventory change of ₹18.43 lakh, which had added to expenses. This shift highlights improved working capital management and demand absorption. Additionally, employee benefits expense increased slightly to ₹6.47 lakh from ₹6.05 lakh in the preceding quarter, while finance costs remained stable at ₹7.73 lakh.

The statutory auditors, A.L. Chechani & Co., issued their limited review report on the unaudited financial results. The report confirmed that the statements were prepared in accordance with Indian Accounting Standard 34 and did not contain any material misstatements. The company continues to operate as a single-segment business with no subsidiaries, associates, or joint ventures, meaning only standalone results are applicable.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.75%	-3.63%	+8.36%	+28.81%	-13.24%	+89.55%

Lagnam Spintex Limited reported its audited standalone financial results for the quarter and year ended 31st March 2026. The company posted a net profit of ₹1,438.98 lacs for FY26, marking an improvement over ₹1,285.47 lacs recorded in FY25. Revenue from operations for the full year came in at ₹60,498.05 lacs, broadly in line with ₹60,556.46 lacs in the prior year, while the fourth quarter showed a notable sequential and year-on-year uptick in revenue. In compliance with Regulation 30 and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company subsequently published an extract of its audited financial results in "The Financial Express" (English) and "Nafa Nuksaan" (Hindi), both dated 09.05.2026.

Financial Performance: Quarter and Full Year

The company's quarterly performance for Q4 FY26 reflected a strong sequential recovery, with revenue from operations rising to ₹17,965.02 lacs from ₹15,280.39 lacs in Q3 FY26 and ₹16,285.93 lacs in Q4 FY25. Profit before tax for Q4 FY26 stood at ₹1,151.22 lacs, compared to ₹515.06 lacs in Q3 FY26 and ₹1,197.10 lacs in Q4 FY25. For the full year, profit before tax improved to ₹1,981.79 lacs from ₹1,790.13 lacs in FY25. The following table summarises the key financial metrics (Rs. in Lacs):

Metric:	Q4 FY26 (Audited)	Q3 FY26 (Unaudited)	Q4 FY25 (Audited)	FY26 (Audited)	FY25 (Audited)
Revenue from Operations:	17,965.02	15,280.39	16,285.93	60,498.05	60,556.46
Other Income:	5.94	7.60	1.41	25.14	23.84
Total Income:	17,970.96	15,287.99	16,287.34	60,523.19	60,580.30
Total Expenses:	16,819.74	14,772.93	15,090.24	58,541.40	58,790.17
Profit Before Tax:	1,151.22	515.06	1,197.10	1,981.79	1,790.13
Net Profit:	835.40	368.65	854.45	1,438.98	1,285.47
Total Comprehensive Income:	848.12	367.31	842.42	1,447.70	1,280.14

Earnings Per Share

Earnings per equity share (face value of Rs. 10/- each, not annualised) for the full year FY26 stood at ₹8.14 on both basic and diluted basis, compared to ₹7.28 in FY25. For Q4 FY26, basic and diluted EPS were ₹4.73 each, against ₹4.84 in Q4 FY25.

Key Expense Items

The company's cost structure for FY26 is detailed below (Rs. in Lacs):

Expense Item:	FY26	FY25
Cost of Materials Consumed:	42,705.58	44,092.69
Employee Benefits Expense:	2,494.88	2,447.58
Finance Costs:	3,065.23	3,084.91
Depreciation & Amortisation:	1,661.81	1,679.24
Other Expenses:	7,887.36	7,757.46
Total Expenses:	58,541.40	58,790.17

Notably, the company recognised an incremental financial impact of ₹14.99 lakhs as past service cost on post-employment defined benefits for employees, following the Government of India consolidating labour laws into four unified Labour Codes effective from 21 November 2025, accounted for under Employee Benefit Expenses.

Balance Sheet Highlights

As at 31st March 2026, total assets stood at ₹57,159.26 lacs compared to ₹57,024.29 lacs as at 31st March 2025. Total equity improved to ₹13,534.59 lacs from ₹12,086.89 lacs, supported by an increase in other equity to ₹11,767.69 lacs from ₹10,319.99 lacs. Non-current borrowings declined to ₹17,018.34 lacs from ₹20,164.42 lacs, reflecting repayment activity during the year. Paid-up equity share capital remained unchanged at ₹1,766.90 lacs.

Cash Flow Summary

Net cash from operating activities for FY26 was ₹7,300.89 lacs, a significant increase from ₹2,407.05 lacs in FY25. Net cash used in investing activities was ₹(1,188.23) lacs, while net cash used in financing activities was ₹(6,099.84) lacs. Closing cash and cash equivalents stood at ₹22.16 lacs as at 31st March 2026, up from ₹9.34 lacs at the close of FY25.

Board Decisions and Corporate Developments

At the Board meeting held on 8th May 2026, several key decisions were taken in addition to the approval of financial results:

Internal Auditor Appointment: M/s SSMS & Associates, Chartered Accountants (FRN: 019351C), Bhilwara, appointed as Internal Auditors for FY 2026-27.
Cost Auditor Re-appointment: M/s N. D. Birla & Co., Cost Accountants (FRN: 000028), Ahmedabad, re-appointed as Cost Auditors for FY 2026-27.
16th Annual General Meeting: Scheduled for Thursday, 27th August 2026 at 11.30 A.M. via Video Conferencing/other audio-visual means, connected from the Registered Office at A 51-53, RIICO Growth Centre, Hamirgarh, Bhilwara-311001.
Board's Report: Approved along with annexures and Management Discussion & Analysis for FY 2025-2026.

The statutory auditors, M/s A.L. Chechani & Co., Chartered Accountants (Firm Reg. No.: 005341C), issued an unmodified opinion on the audited financial results for the quarter and year ended 31st March 2026. The results have been prepared in accordance with Indian Accounting Standards (Ind AS) under Section 133 of the Companies Act, 2013. The company operates in a single business segment and has no subsidiaries, associates, or joint ventures, and has therefore prepared only standalone results.