Promoters of LWS Knitwear disposed of 3,70,964 shares in the open market between August 25 and September 3, 2026. The sale represents a 2.54% reduction in the promoter group’s stake.

The disposal was executed by Managing Director Girish Kapoor and CFO Arjun Kapoor on the Bombay Stock Exchange (BSE). The transaction brings the cumulative holding of the sellers and persons acting in concert (PAC) down from 85,50,574 shares (58.44%) to 81,79,610 shares (55.90%).

Sale Breakdown

The share sales occurred over six trading days. Girish Kapoor sold a total of 2,23,135 shares, while Arjun Kapoor disposed of 1,47,829 shares. No encumbrances or pledges were invoked during the period.

Regulatory Disclosure

The disclosure was filed under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The promoter group includes PACs Kusum Kapoor, Munish Sunda, Sunish Sunda, Gopal Kapoor, and other deceased members.

What the Numbers Show

The post-sale holding of 55.90% indicates that the promoter group retains a significant controlling interest in LWS Knitwear, despite the recent reduction. The absence of pledged shares suggests the sales were likely for personal liquidity rather than debt servicing.

LWS Knitwear reported a net profit of ₹17.7 lakh for the first quarter of FY27, marking a significant decline from the ₹27.2 lakh earned in the corresponding period of the previous fiscal year. The Ludhiana-based textile manufacturer saw its revenue from operations contract by 5.3% year-on-year to ₹1,237.8 lakh, down from ₹1,307.4 lakh in Q1FY26.

The company’s Board of Directors, including Managing Director Girish Kapoor, approved the unaudited financial results during a meeting held on August 14, 2026. The results were reviewed by the statutory auditor, Parmod G. Gupta & Associates, which issued a limited review report stating that nothing came to their attention to suggest material misstatement.

Financial Performance Overview

Revenue pressure was evident as operating income fell despite a reduction in overall expenses. Total expenses for the quarter stood at ₹1,214.5 lakh, compared to ₹1,272.1 lakh in Q1FY26. This reduction was primarily driven by lower finance costs and changes in inventory levels.

Finance costs declined sharply to ₹44.0 lakh from ₹69.0 lakh in the prior year quarter, contributing to the expense reduction. However, purchases of stock-in-trade increased to ₹1,347.0 lakh from ₹1,652.9 lakh, while changes in inventories provided a credit of ₹198.3 lakh, compared to ₹468.0 lakh in Q1FY26. The lower inventory adjustment partially offset the revenue decline but was insufficient to maintain profitability levels.

What the Numbers Show

The divergence between revenue decline and expense management highlights margin compression. While finance costs dropped significantly, the reduction in inventory benefits (changes in stock-in-trade) was substantial. In Q1FY26, inventory adjustments contributed ₹468.0 lakh to reducing expenses, whereas this benefit halved to ₹198.3 lakh in Q1FY27. This structural shift in working capital dynamics, combined with lower top-line growth, directly impacted the bottom line, resulting in a profit drop that outpaced the revenue decline.

Earnings per share (EPS) fell to ₹0.12 from ₹0.19 in the previous year’s quarter. The company operates solely in the textiles segment, with no other income reported for the current or prior quarter. Reserves and surplus stood at ₹1,816.5 lakh as on June 30, 2026, up from ₹1,798.8 lakh at the end of FY26.