Nahar Spinning Mills reported a sharp recovery in profitability for the quarter ended June 30, 2026, with net profit from continuing operations surging 338% year-on-year to ₹69.88 lakh (699M rupees). The Ludhiana-based textile manufacturer also saw revenue from operations rise 18% to ₹966.10 lakh (9.66B rupees), driven by stronger operational performance compared to the same period in the previous year. This marks a notable improvement from the ₹15.96 lakh net profit recorded in Q1FY26.

The Board of Directors approved the standalone un-audited financial results during a meeting held on August 5, 2026. The results were reviewed by M/s. Gupta Vigg & Co., Chartered Accountants, Ludhiana, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In addition to the financial results, the Board approved the re-appointment of Dinesh Oswal as Managing Director for five years effective January 1, 2027, subject to shareholder approval. The Board also approved the re-appointment of Dr. Yash Paul Sachdeva and Dr. Anchal Kumar Jain as Independent Directors for a second term of five years effective August 24, 2027.

Financial Performance

Revenue from operations grew to ₹966.10 lakh in Q1FY27, up from ₹819.28 lakh in the corresponding quarter of the previous year. Other income also saw a substantial increase, rising to ₹9.42 lakh from ₹3.68 lakh. Total income from operations stood at ₹975.52 lakh, compared to ₹822.96 lakh in Q1FY26. The following table summarises the key financial metrics for the quarter:

Total expenses increased by 10% to ₹882.13 lakh, primarily due to higher cost of materials consumed and power & fuel costs. Cost of materials consumed rose to ₹549.27 lakh from ₹548.26 lakh, while power and fuel expenses increased to ₹79.20 lakh from ₹73.62 lakh. Despite the rise in expenses, the company managed to improve its bottom line significantly.

EBITDA and Margin Expansion

Latest data reveals a significant improvement in operating profitability, with EBITDA more than doubling year-on-year. The EBITDA margin expanded sharply, reflecting improved operational efficiency and better cost management during the quarter. The table below highlights the EBITDA performance:

The most striking aspect of the quarterly performance is the divergence between expense growth and profit growth. While total expenses rose by only 10%, net profit more than quadrupled. The profit before tax jumped from ₹21.28 lakh to ₹93.39 lakh, suggesting that the company successfully passed on input cost increases or benefited from a favorable product mix. The tax expense was ₹23.50 lakh, reflecting the higher taxable income.

Corporate Actions

The company announced that its 46th Annual General Meeting will be held on September 25, 2026, at 10:00 am through Video Conferencing/Other Audio Visual Means. The Register of Members and Share Transfer Books will remain closed from September 5, 2026, to September 9, 2026. The record date for dividend payment on Equity Shares for the financial year ended March 31, 2026, has been fixed as September 4, 2026. Shareholders holding shares on this date will be eligible for the dividend.

Nahar Spinning Mills reported a 76.7% increase in net profit to ₹2181.93 lakhs for the financial year ended March 31, 2026, driven by reduced finance costs and improved operational efficiency. The company's revenue from operations for the year stood at ₹321792.38 lakhs, while total income from operations was ₹323311.25 lakhs. The Board of Directors has recommended a dividend of ₹1.00 per equity share, equivalent to 20%, subject to shareholder approval at the ensuing Annual General Meeting.

Q4 Performance Overview

For the quarter ended March 31, 2026, Nahar Spinning Mills posted a net profit of ₹2341.72 lakhs, compared to ₹2241.37 lakhs in the same period last year. Revenue for the quarter grew to ₹91681.65 lakhs from ₹87559.54 lakhs in the corresponding quarter of the previous year. However, the company's Q4 EBITDA declined to ₹590M rupees from ₹662M rupees year-on-year, with the EBITDA margin contracting to 6.43% from 7.60% in the same period last year. The statutory auditors, M/s. Gupta Vigg & Co., issued an unmodified opinion on the standalone financial results.

The table below summarises key Q4 metrics:

Full-Year Financial Performance

The company's total expenses for the year decreased to ₹320616.36 lakhs from ₹329253.41 lakhs in the previous year. Finance costs reduced significantly to ₹5438.75 lakhs from ₹7420.13 lakhs, contributing to the improved bottom line. Earnings per share (EPS) for the year rose to ₹6.92 from ₹3.09 in the prior year. The full-year financial highlights are presented below:

Dividend Declaration

The Board recommended a dividend of ₹1.00 per equity share of ₹5 each for the financial year 2025-26. This dividend is subject to the approval of shareholders at the company's Annual General Meeting. The paid-up equity share capital of the company remains at ₹1803.27 lakhs.

Balance Sheet Highlights

The company's total assets as of March 31, 2026, stood at ₹269321.75 lakhs, slightly lower than ₹274977.02 lakhs in the previous year. Total equity increased to ₹151211.80 lakhs from ₹148936.45 lakhs. Current liabilities decreased to ₹95726.07 lakhs from ₹103853.00 lakhs, indicating improved working capital management.