Laxmi Cotspin Limited has confirmed that its promoters and promoter group have not created any encumbrance, directly or indirectly, on their shares during the financial year ended March 31, 2026. The disclosure ensures that the shareholding structure remains free from undisclosed charges, providing transparency to shareholders regarding the promoters' holdings.

The confirmation was submitted by Mr. Sanjay Kachrual Rathi on behalf of the promoter group to the National Stock Exchange of India Limited. The filing was made in compliance with Regulation 31(4) of the Securities and Exchange Board of India (SEBI) (Substantial Acquisition of Shares and Takeover) Regulations, 2011. This regulation mandates periodic disclosures to prevent any substantial acquisition of shares that might affect the company's control or ownership without proper regulatory oversight.

The letter explicitly stated that no new encumbrances were made other than those already disclosed during the financial year. This assurance is critical for maintaining investor confidence, as it indicates that the promoters' shares are not being used as collateral for loans or other financial obligations that could potentially impact the company's stability. The company secretary, Soni Karwa, forwarded the disclosure to the exchange for record-keeping purposes.

Laxmi Cotspin Limited has reported a consolidated net loss of ₹117.86 lakh for the financial year ended March 31, 2026, a reversal from the net profit of ₹47.60 lakh recorded in the previous year. Revenue from operations for the year stood at ₹15,067.21 lakh, marginally higher than the ₹15,041.56 lakh reported in FY25. The company's Board of Directors approved the audited standalone and consolidated financial results during a meeting on May 22, 2026.

Financial Performance

For the quarter ended March 31, 2026, the company posted a net loss of ₹141.42 lakh. Revenue from operations for the quarter declined to ₹1,727.53 lakh from ₹2,246.03 lakh in the corresponding quarter of the previous year. Total expenses for the quarter rose to ₹2,035.66 lakh from ₹2,186.60 lakh in the same period last year.

Operational Highlights

The company's finance costs for the year decreased to ₹388.29 lakh from ₹457.76 lakh in the previous year. Depreciation and amortization expenses also reduced to ₹218.28 lakh from ₹320.59 lakh. However, employee benefit expenses increased to ₹741.82 lakh from ₹819.63 lakh. The basic and diluted earnings per share (EPS) for the year stood at a loss of ₹1.11 and ₹0.72 respectively, before and after exceptional items.

Auditor's Observations

The statutory auditors, DM K H & Co., issued a qualified opinion on the financial results. Key concerns included the inability to ascertain the correctness of inventory valuation due to lack of proper records, non-compliance regarding statutory requirements for an advance to a subsidiary, and uncertainty regarding the recoverability of a significant advance given to a creditor. Additionally, the company has not recognized Expected Credit Loss (ECL) provisions on trade receivables outstanding for over three years.

Trading Window Update

In accordance with the Code of Conduct for the prevention of Insider Trading, the company stated that the trading window will open 48 hours after the declaration of the financial results. This applies to all directors and designated officers of the company.