Mohit Industries Limited reported a narrowing loss for the first quarter of FY27, with standalone profit after tax (PAT) improving to a loss of ₹31.74 lakh compared to a loss of ₹43.22 lakh in Q1FY26. Consolidated PAT attributable to owners of the parent showed a similar improvement, recording a loss of ₹29.17 lakh versus a loss of ₹42.83 lakh in the prior year period.

Revenue from operations declined significantly year-on-year, falling to ₹2,483.29 lakh from ₹3,224.49 lakh in Q1FY25. This represents a contraction of approximately 23% in top-line growth for the quarter ended June 30, 2026.

Financial Performance

The company’s total income stood at ₹2,641.43 lakh, driven by other income of ₹158.14 lakh, which more than tripled from ₹50.00 lakh in the corresponding quarter last year. Total expenses decreased to ₹2,668.32 lakh from ₹3,332.25 lakh in Q1FY25, primarily due to lower cost of materials consumed (₹1,998.38 lakh vs ₹2,374.38 lakh) and reduced other expenses (₹300.80 lakh vs ₹607.78 lakh).

Basic earnings per share (EPS) for continuing operations were negative ₹0.22 per share, an improvement from negative ₹0.31 per share in Q1FY26.

What the Numbers Show

While revenue contracted sharply, the company managed to reduce its operating losses through significant expense control. Other income contributed substantially to the bottom line, accounting for nearly half of the total income in the quarter. This divergence between declining core revenues and rising non-operating income highlights a shift in the composition of total earnings during the period.

Key Managerial Personnel Changes

The Board of Directors, meeting on August 12, 2026, approved changes in key managerial personnel. Ms. Zinal Modi resigned from the post of Company Secretary and Compliance Officer with immediate effect, citing personal reasons and professional growth opportunities.

In her place, Mr. Jatin Kharwa was appointed as Company Secretary and Compliance Officer, effective August 12, 2026. Mr. Kharwa is an Associate Member of the Institute of Company Secretaries of India (Membership No. A57318) with over five years of post-qualification experience in corporate secretarial functions and compliance management.

Auditor Qualification

The independent auditor, Rajendra Sharma & Associates, issued a limited review report with a qualification regarding employee benefits. The firm noted that the company has not provided for Post Employment Benefits and other long-term employee benefits under Defined Benefit Plans on an accrual basis, deviating from Ind AS 19. The auditor stated that if Ind AS 19 were followed, employee benefit expenses would have increased, and profits would have reduced. The management maintained that the liability is negligible and does not impact the financial position.

The company also announced that its 36th Annual General Meeting will be held on September 30, 2026, via video conferencing.

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.