The Lakshmi Mills Company Ltd reported a net loss of ₹1,554.94 lakh for FY26, widening significantly from the ₹467.53 lakh loss recorded in the previous year. The deterioration was primarily driven by a sharp increase in tax expenses rather than core operational performance.

While the company managed to turn its operations profitable before tax, recording a profit of ₹753.75 lakh against a loss of ₹740.45 lakh in FY25, this gain was entirely erased by non-operational tax adjustments. Revenue from operations fell 8.1% year-on-year to ₹24,183.48 lakh, reflecting headwinds in the textile segment.

Financial Performance

The company’s revenue decline was concentrated in its textile business, where sales dropped to ₹20,906.18 lakh from ₹23,181.39 lakh in the prior year. Export revenues specifically contracted by nearly 19%, falling to ₹2,738.14 lakh. Conversely, the rental services segment provided stability, with income rising to ₹2,480.28 lakh from ₹2,176.53 lakh, supported by new tenants and event-based revenue sharing.

What the Numbers Show

The divergence between operational profitability and the final bottom line highlights a significant one-time tax impact. Although the company generated an operating profit, the transition to the concessional tax regime under Section 115BAA triggered a material write-off of Minimum Alternate Tax (MAT) credit entitlement amounting to ₹918.03 lakh. This write-off, combined with deferred tax adjustments, resulted in a total tax expense of ₹2,285.16 lakh, which exceeded the pre-tax profit by more than three times. Consequently, the reported net loss does not reflect the underlying operational improvement achieved during the year.

Balance Sheet and Dividend

The company strengthened its balance sheet by reducing total borrowings to ₹8,129.28 lakh from ₹13,350.57 lakh in the previous year. This deleveraging effort improved the debt-to-equity ratio to 0.11 from 0.15. Despite the reported net loss, the Board recommended a dividend of ₹10 per share (10%), subject to shareholder approval at the upcoming Annual General Meeting on September 25, 2026.

Lakshmi Mills has issued the notice for its 116th Annual General Meeting (AGM), scheduled for September 25, 2026. The Coimbatore-based textile firm also reminded shareholders to update their KYC details and register email addresses to facilitate electronic communication and dividend payments.

The company confirmed that the AGM will be held via Video Conference or Other Audio Visual Means at 12:05 pm. Physical attendance is not permitted, with the deemed venue remaining the registered office in Coimbatore.

Dividend and Governance

The Board of Directors recommended a final dividend of 10% (₹10 per equity share of face value ₹100 each) for the financial year ended March 31, 2026. Shareholders on record as of September 18, 2026, will be eligible for the payout.

The agenda includes the reappointment of Sri R. Santharam as a Non-Executive Non-Independent Director. He retires by rotation and offers himself for reappointment. Santharam has served on the board since March 27, 2002.

Special Business: Cost Auditor Appointment

Shareholders will ratify the appointment of A. R. Ramasubramania Raja & Co., Cost Accountants, as the cost auditor for the financial year 2026-27. The Board approved a remuneration of ₹1,50,000 per annum, exclusive of taxes and out-of-pocket expenses.

The statutory auditors, M/s. Subbuchar & Srinivasan, Chartered Accountants, were appointed for a five-year term ending with the 117th AGM in 2027. Consequently, no resolution for their reappointment is proposed at this meeting.

Voting and Participation

Remote e-voting will be available from September 22, 2026, at 9:00 am until September 24, 2026, at 5:00 pm. The facility is provided through National Securities Depository Limited (NSDL). Members holding shares in demat or physical form can vote electronically.

The register of members and share transfer books will remain closed from September 19, 2026, to September 25, 2026. Proxy appointments are not available for this virtual meeting.

KYC and Communication Updates

In compliance with Regulation 36(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has sent letters containing web-links to the Annual Report 2025-2026 to members who have not registered their email addresses with the company or depositories.

The company reminded security holders holding physical securities to update their KYC details pursuant to SEBI Master Circular No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/37 dated May 7, 2024. This includes recording PAN, address with PIN code, mobile number, bank account details, specimen signature, and choice of nomination.

Shareholders are advised that those holding physical folios without updated PAN, nomination, contact details, bank account details, or specimen signatures will be eligible for payments, including dividends, only through electronic mode effective April 1, 2024. While updating email IDs is optional, the company encourages registration to avail online services.