The Lakshmi Mills Company Limited reported a net profit of ₹311.1 lakh for the quarter ended June 30, 2026, reversing the net loss of ₹2,203.0 lakh posted during the same period last year. The company’s revenue from operations rose 8.4% year-on-year to ₹5,971.9 lakh, up from ₹5,507.0 lakh in Q1FY26. This improvement reflects a broader operational recovery, with earnings per share (EPS) turning positive at ₹44.72 compared to a loss of ₹316.72 per share in the prior year.

Financial Performance

Total income for the quarter stood at ₹6,015.0 lakh, while total expenses were contained at ₹5,603.4 lakh. Profit before tax amounted to ₹411.6 lakh, significantly higher than the pre-tax loss of ₹100.3 lakh recorded in Q1FY26. Tax expenses for the current quarter were ₹100.5 lakh, comprising current tax of ₹71.7 lakh and deferred tax of ₹28.8 lakh. In contrast, the previous year’s period saw a massive tax expense of ₹2,102.7 lakh, largely driven by deferred tax provisions.

Segment Analysis

The company operates through two primary segments: Textiles and Rental Services. The Textiles segment, which involves manufacturing and sale of yarn and trading in fabrics, generated revenue of ₹5,313.3 lakh, up from ₹4,909.0 lakh in the previous year. More critically, the segment swung to a profit before interest and tax (PBIT) of ₹141.7 lakh, recovering from a PBIT loss of ₹191.8 lakh in Q1FY26.

Rental Services contributed ₹686.3 lakh in revenue, an increase from ₹619.9 lakh year-ago. The segment delivered a robust PBIT of ₹553.6 lakh, up from ₹466.0 lakh in the prior period, highlighting its role as a stable cash flow generator for the group.

What the Numbers Show

A key divergence exists between the operational profitability and the tax burden in the comparative periods. While the pre-tax position improved by over ₹500 lakh year-on-year, the total tax expense dropped sharply from ₹2,102.7 lakh in Q1FY26 to just ₹100.5 lakh in Q1FY27. This suggests that the prior year’s significant loss was heavily influenced by deferred tax accounting adjustments rather than purely operational deficits, as the current quarter’s lower tax outflow aligns more closely with the modest pre-tax profits generated.

Balance Sheet and Other Metrics

Finance costs decreased to ₹213.9 lakh from ₹322.5 lakh in the previous year, indicating reduced interest burdens or lower debt levels. Depreciation and amortization expenses also fell to ₹272.2 lakh from ₹332.4 lakh. Total comprehensive income for the quarter was ₹16,158.2 lakh, driven primarily by other comprehensive income items that will not be reclassified to profit or loss, which stood at ₹18,489.8 lakh after tax effects.

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors on August 14, 2026. Statutory auditors Subbachar & Srinivasan Chartered Accountants issued an unmodified review report on the standalone financial results.

The Lakshmi Mills Company Limited reported its audited standalone financial results for the year ended March 31, 2026, recording a net loss of ₹1,554.94 lakhs. This compares to a net loss of ₹467.53 lakhs in the previous fiscal year. The widened loss was significantly influenced by a deferred tax expense of ₹2,119.53 lakhs for the year, consequent to the adoption of the new tax regime under Section 115BAA of the Income Tax Act, 1961. This required adjustments to deferred tax assets relating to brought-forward unabsorbed additional depreciation and MAT credit entitlement amounting to ₹1,948.70 lakhs. Despite this, the company achieved a profit before tax of ₹730.22 lakhs in FY26, reversing a pre-tax loss of ₹718.91 lakhs in FY25, indicating an improvement in underlying operational performance.

Financial Performance Overview

The following table presents the key financial metrics for the quarter and year ended March 31, 2026, compared to corresponding prior periods (Rs. in lakhs):

Revenue from operations for FY26 stood at ₹24,183.48 lakhs, compared to ₹26,316.27 lakhs in FY25. Total income for the full year was ₹24,541.72 lakhs against ₹26,953.50 lakhs in the prior year. Total expenses for FY26 declined to ₹23,787.97 lakhs from ₹27,693.95 lakhs in FY25, reflecting cost moderation across key line items including materials consumed, finance costs, and depreciation. Finance costs for the year reduced to ₹1,026.36 lakhs from ₹1,540.23 lakhs, while depreciation and amortisation expenses declined to ₹1,375.86 lakhs from ₹1,753.05 lakhs.

Segment Performance

The company operates through two reportable business segments — Textiles (manufacturing and sale of yarn, and trading in fabrics) and Rental Services (letting out of properties). The segment-wise performance for FY26 and FY25 is summarised below (Rs. in lakhs):

The Textiles segment reported a loss before interest and tax of ₹246.14 lakhs in FY26, a significant improvement from a loss of ₹1,150.68 lakhs in FY25. The Rental Services segment continued to deliver positive results, with a profit before interest and tax of ₹2,034.49 lakhs in FY26, up from ₹1,750.22 lakhs in FY25. Total segment assets as at March 31, 2026 stood at ₹89,839.99 lakhs, compared to ₹1,15,234.12 lakhs as at March 31, 2025, while total segment liabilities declined to ₹18,608.16 lakhs from ₹26,435.93 lakhs.

Balance Sheet Highlights

The company's total assets as at March 31, 2026 stood at ₹89,839.99 lakhs, compared to ₹1,15,234.12 lakhs as at March 31, 2025. Non-current investments declined to ₹59,612.59 lakhs from ₹84,671.49 lakhs, reflecting the sale of non-current equity investments during the year. Total equity as at March 31, 2026 was ₹71,231.83 lakhs, comprising equity share capital of ₹695.55 lakhs and other equity of ₹70,536.28 lakhs, compared to total equity of ₹88,798.19 lakhs in the prior year. Total liabilities reduced to ₹18,608.16 lakhs from ₹26,435.93 lakhs, with current borrowings declining sharply to ₹3,285.12 lakhs from ₹7,173.46 lakhs.

Cash Flow and Exceptional Items

Net cash flow from operating activities for FY26 was ₹793.12 lakhs, compared to ₹2,754.03 lakhs in FY25. Net cash flow from investing activities was ₹5,490.29 lakhs, driven primarily by proceeds from sale of shares amounting to ₹5,784.53 lakhs. Net cash used in financing activities was ₹6,250.06 lakhs, reflecting repayment of long-term borrowings of ₹1,412.04 lakhs and net repayment of short-term borrowings of ₹3,809.25 lakhs. Cash and cash equivalents at the end of the year stood at ₹52.65 lakhs, up from ₹19.30 lakhs at the beginning of the year.

Regarding exceptional items, the company reported an exceptional charge of ₹23.53 lakhs for FY26, relating to a past-period employee benefit liability arising from the New Labour Codes that became effective on November 21, 2025. In FY25, an exceptional income of ₹21.54 lakhs had been recorded, representing balance compensation for compulsory land acquisition. Additionally, Other Comprehensive Income for FY26 includes ₹189.74 lakhs of realised profits on sale of non-current equity investments designated as FVOCI equity instruments, with cumulative realised gains of ₹5,783.36 lakhs reclassified within other equity.

AGM, Book Closure, and Dividend

The Board of Directors announced the closure of the Register of Members in connection with the Annual General Meeting scheduled on September 25, 2026. The key dates are as follows:

The Board of Directors recommended a dividend of 10% (Rs. 10/- per equity share of Rs. 100/- each) for the financial year ended March 31, 2026, subject to deduction of tax as applicable. The statutory auditors, M/s. Subbachar & Srinivasan, Chartered Accountants, Coimbatore (Firm Registration No. 004083S), issued an unmodified and unqualified opinion on the audited standalone financial results for the year ended March 31, 2026. The results were reviewed and recommended by the Audit Committee and approved by the Board at their meeting held on May 18, 2026.