LWS Knitwear Q1 Results: Net profit falls 35% YoY to ₹17.7 lakh
LWS Knitwear reported Q1FY27 net profit of ₹17.7 lakh, down 35% YoY, amid a 5.3% revenue slide to ₹1,237.8 lakh. Expenses fell to ₹1,214.5 lakh due to lower finance costs and reduced inventory benefits. EPS dropped to ₹0.12 from ₹0.19.
*this image is generated using AI for illustrative purposes only.
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.
| Metric | Q1FY27 (₹ lakh) | Q1FY26 (₹ lakh) | Change |
|---|---|---|---|
| Revenue from Operations | 1,237.84 | 1,307.35 | -5.3% |
| Total Expenses | 1,214.50 | 1,272.07 | -4.5% |
| Profit Before Tax | 23.34 | 35.28 | -33.8% |
| Net Profit | 17.73 | 27.23 | -34.9% |
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 of June 30, 2026, up from ₹1,798.8 lakh at the end of FY26.
Historical Stock Returns for LWS Knitwear
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.27% | -4.82% | -3.16% | -5.60% | -19.52% | +148.92% |
How might the sharp decline in inventory adjustment benefits impact LWS Knitwear's working capital efficiency and cash flow in Q2FY27?
What specific strategies is management implementing to reverse the 5.3% revenue contraction amidst broader challenges in the Ludhiana textile sector?
Will the reduction in finance costs be sustainable, or does it reflect a temporary change in debt structure that could revert in future quarters?
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