Mohit Industries Limited narrowed its net loss to ₹75.19 lakh for the financial year ended March 31, 2026, compared to a net loss of ₹246.10 lakh in the previous year, as revenue from operations rose to ₹13989.67 lakh. The company reported a profit of ₹12.70 lakh for the quarter ended March 31, 2026, rebounding from a loss of ₹45.69 lakh in the corresponding quarter of the prior year. Total income for the year stood at ₹14209.49 lakh, up from ₹11424.06 lakh in FY25.

Auditor's Qualification

Rajendra Sharma & Associates, the statutory auditor, issued a qualified opinion on the standalone and consolidated financial results. The qualification arises because the company has not provided for post-employment benefits and other long-term employee benefits under defined benefit plans on an accrual basis, opting instead to pay them as they become due. This accounting treatment constitutes a departure from Ind AS 19 on Employee Benefits. The auditor noted that the quantum of deviation cannot be ascertained as no actuarial report is available, and compliance would have increased employee benefit expenses and reduced the reported profit.

Operational Performance

The board noted that profitability during the year was supported by strategic cost-optimization measures, including increased reliance on solar power generation which reduced overall energy expenses. While adverse weather conditions in the second quarter restricted solar power utilization to approximately 65% of installed capacity, generation levels improved in the March quarter and are expected to normalize further. The company operates a single reportable segment, Textile.

Financial Position

Total assets stood at ₹8438.63 lakh as of March 31, 2026, down from ₹9976.39 lakh a year earlier. Total equity decreased to ₹2727.21 lakh from ₹3380.59 lakh in the same period. The company generated net cash from operating activities of ₹1272.81 lakh during the year, compared to a net outflow of ₹477.24 lakh in the previous year.

Board Appointments

The board approved the appointment of Mr. Hemal Kahar as Internal Auditor and M/s. Nainesh Kantliwala & Co. as Cost Auditors for the financial year 2026-27. The appointments are effective from May 29, 2026.

Mohit Industries reported a narrowed net loss of ₹75.19 lakh for the financial year ended March 31, 2026, compared to a net loss of ₹246.10 lakh in the previous year. Revenue from operations rose 24.5% to ₹13989.67 lakh for the year, driven by the company's textile segment. For the quarter ended March 31, 2026, the company posted a net profit of ₹12.70 lakh, reversing the net loss of ₹45.69 lakh recorded in the corresponding period of the prior year.

The Board of Directors approved the audited standalone and consolidated financial results at a meeting held on May 29, 2026. The meeting also saw the appointment of Mr. Hemal Kahar as Internal Auditor and M/s. Nainesh Kantliwala & Co. as Cost Auditors for the financial year 2026-27. The company noted that profitability during the year was supported by strategic cost-optimization measures, including increased reliance on solar power generation, which reduced overall energy expenses.

Financial Performance

The company's total income for FY26 stood at ₹14209.49 lakh, up from ₹11424.06 lakh in FY25. Total expenses for the year increased to ₹14338.00 lakh from ₹11752.29 lakh in the previous year. The basic earnings per share (EPS) for the year improved to a loss of ₹0.53, compared to a loss of ₹1.74 in FY25. On a standalone basis, the company's net worth stood at ₹2727.21 lakh as of March 31, 2026.

Auditor's Qualification

Rajendra Sharma & Associates, the statutory auditors, issued a qualified opinion on the standalone and consolidated financial results. The qualification arises because the company has not provided for post-employment benefits and other long-term employee benefits under defined benefit plans on an accrual basis, instead accounting for them as and when they become due for payment. This method constitutes a departure from Ind AS 19 on Employee Benefits.

The auditors stated that due to the absence of an actuarial report, the quantum of deviation cannot be ascertained. Had the company followed Ind AS 19, employee benefit expenses would have increased, and the profit for the period would have reduced. The Board, however, opined that the liability is negligible and will not impact the financial position, citing the high cost of actuarial consultation relative to the annual liability. This qualification has been a recurring feature in the auditor's report since 2007.

Consolidated Results

On a consolidated basis, which includes associates Mohit Yarns Limited and Mohit Overseas Limited, the company reported a net loss of ₹78.79 lakh for FY26, narrowing from a loss of ₹242.72 lakh in the previous year. Total consolidated income for the year was ₹14209.49 lakh. The consolidated net worth stood at ₹9254.15 lakh as of March 31, 2026. The auditors issued a similar qualified opinion on the consolidated financial statements regarding the holding company's accounting for post-employment benefits.