Loyal Textile Mills reports wider net loss in FY26
Loyal Textile Mills Limited reported a widened consolidated net loss of ₹64.67 crore for FY26, down from a loss of ₹46.85 crore in FY25, as revenue from operations declined to ₹421.96 crore. The results include an exceptional loss of ₹3.72 crore, driven by a ₹36.46 crore inventory impairment charge, partially offset by a ₹33.81 crore profit on asset sales. The statutory auditors issued an unmodified opinion, emphasizing management's efforts to monetize assets and rationalize operations to improve liquidity and operational efficiency.
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Loyal Textile Mills Limited reported a consolidated net loss of ₹64.67 crore for the financial year ended March 31, 2026, widening from a net loss of ₹46.85 crore in the previous year. Revenue from operations for the year stood at ₹421.96 crore, a sharp decrease from ₹627.78 crore in FY25. The textile manufacturer's Board of Directors approved the audited standalone and consolidated financial results at a meeting held on May 27, 2026.
The statutory auditors, M/s. Brahmayya & Co., Chartered Accountants, issued an unmodified opinion on the financial results. The report includes an emphasis of matter regarding the company's initiatives to monetize assets and scale down operations to improve operational efficiencies. The results were published in newspapers on May 29, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Financial Performance
The company reported an exceptional loss of ₹3.72 crore for the year ended March 31, 2026. This included a substantial inventory impairment charge of ₹36.46 crore due to tariff-related uncertainties and geopolitical developments affecting GCC markets. Partially offsetting this was a profit on the sale of assets amounting to ₹33.81 crore, arising from the disposal of surplus land, wind mills, and idle plant and machinery as part of an asset optimisation programme.
| Metric | FY26 (₹ in Lakhs) | FY25 (₹ in Lakhs) |
|---|---|---|
| Revenue from Operations | 42,196 | 62,778 |
| Total Income | 43,108 | 63,950 |
| Total Expenses | 49,366 | 75,032 |
| Profit/Loss before Exceptional Items | (6,258) | (11,082) |
| Net Profit/Loss for the Period | (6,467) | (4,685) |
Discontinued Operations
The financial results include the impact of discontinued operations, specifically the disposal of the SVTM Unit and the initiated disposal of the CTM Unit. These units were classified as discontinued operations in accordance with Ind AS 105. The net loss from discontinued operations for the year was ₹15.60 crore, compared to a loss of ₹40.04 crore in the prior year. A gain on the sale of discontinued operations of ₹7.72 crore was recorded during the current financial year.
Liquidity and Asset Monetisation
Management stated that the company continues its efforts towards the realignment and rationalisation of manufacturing operations to improve capacity utilisation and enhance operational efficiencies. Considerable progress was made in the monetisation of underutilised and non-core assets, with further assets identified for monetisation to reduce debt and strengthen liquidity. Despite the current losses, management expressed confidence in achieving sustainable operational profitability in the near future based on the progress of these initiatives.
Historical Stock Returns for Loyal Textile Mills
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.91% | -6.31% | +2.46% | -0.86% | -30.87% | -78.87% |
What is the expected timeline for the disposal of the CTM Unit and how will its closure impact future revenue streams?
How will the proceeds from the recent asset monetisation be allocated between debt reduction and operational restructuring?
Are the tariff-related uncertainties affecting GCC markets expected to persist into the next financial year?
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