Mohini Health & Hygiene Limited reported a consolidated net loss of ₹166.57 crore for the financial year ended March 31, 2026, a significant reversal from the net profit of ₹58.53 crore recorded in the previous year. The company's standalone financial results also reflected this downturn, posting a net loss of ₹151.78 crore for FY26 against a profit of ₹59.31 crore in FY25. The performance was primarily impacted by extraordinary costs, including a one-time loss of ₹80.38 crore recognized following the final settlement of a historical fire insurance claim and a ₹2.05 lakh charge due to the implementation of new Labour Codes.

The Board of Directors, led by Managing Director Avnish Bansal, approved the audited standalone and consolidated financial results on May 29, 2026. The statutory auditors, Mahesh C. Solanki & Co., provided an unmodified opinion on the results. The company noted that excluding these exceptional and non-recurring items, its underlying business operations remained stable, with positive operating cash flows and improved working capital parameters.

Revenue from operations for the year stood at ₹1,444.60 crore, a decrease from ₹1,677.71 crore in the previous fiscal year. Total income also fell to ₹1,465.95 crore from ₹1,786.96 crore. On the expense side, the company reported a mark-to-market valuation loss of ₹132.18 crore on outstanding foreign exchange forward contracts, which the company stated is a valuation-driven adjustment and not an operating cash outflow.

Financial Performance

The company's financials for the year ended March 31, 2026, show the following key figures:

Strategic Developments

Subsequent to the financial year-end, the National Company Law Tribunal (NCLT) approved a resolution plan for Winsome Yarns Limited on April 16, 2026. Mohini Health & Hygiene will acquire the company through its Special Purpose Vehicle, Dhananya Capital Private Limited, in which it holds a 51% stake. The SPV will assume 95% control of Winsome Yarns Limited for ₹162.90 crore, with a 365-day timeline for operational stabilization. The company expects this move to enhance its strategic positioning and long-term value creation potential.

Asset and Liability Position

The consolidated balance sheet as of March 31, 2026, showed total assets of ₹1,536.54 crore, down from ₹1,678.07 crore in the previous year. Shareholders' funds decreased to ₹886.69 crore from ₹1,053.26 crore. Cash and cash equivalents reduced to ₹54.92 crore from ₹141.35 crore, while net cash from operating activities was ₹92.42 crore.

Mohini Health & Hygiene has completed the incorporation of a subsidiary, Dhananya Capital Private Limited, as part of its strategy to acquire Winsome Yarns Limited. The corporate debtor's resolution plan was previously approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016. The intimation regarding the completion of the subsidiary's incorporation was submitted to the National Stock Exchange of India on May 21, 2026.

Acquisition Details

The newly incorporated subsidiary, Dhananya Capital Private Limited, was established specifically to acquire Winsome Yarns Limited. The acquisition falls under the Corporate Insolvency Resolution Process (CIRP) and involves the manufacture, processing, and trading of textiles and related products. Mohini Health & Hygiene has invested INR 1,27,50,000 in the subsidiary, subscribing to 51% of its equity share capital through cash consideration.

Financial and Structural Information

Dhananya Capital Private Limited is classified as a related party transaction as it is a subsidiary of Mohini Health & Hygiene. However, the promoter or promoter groups do not hold any interest in the subsidiary other than their equity stake in the parent company. The subsidiary was incorporated on May 20, 2026, in India.

Strategic Objectives

The primary object of incorporating Dhananya Capital Private Limited is to execute the acquisition of Winsome Yarns Limited. Beyond the acquisition, the subsidiary's objectives include holding investments, investing in securities, and engaging in the trade of textiles and related products. No specific indicative timeline for the completion of the acquisition or additional governmental approvals were disclosed in the regulatory filing.