Neelam Linens and Garments (India) Limited reported a 42.3% decline in net profit to ₹154.76 lakh for the financial year ended March 31, 2026, despite a 7.1% increase in revenue from operations to ₹11,829.14 lakh. The company's board approved the audited financial results for the year and half-year ended March 31, 2026, at a meeting held on May 30, 2026. The statutory auditors, M/s PDMS & Co. LLP, issued an unmodified opinion on the results.

Revenue from operations for FY26 rose to ₹11,829.14 lakh from ₹11,042.73 lakh in the previous year. Total income increased to ₹12,127.71 lakh from ₹11,164.36 lakh. However, total expenses climbed to ₹11,913.30 lakh from ₹10,791.64 lakh in FY25, primarily driven by higher costs of materials consumed, which reached ₹10,848.85 lakh. Finance costs decreased to ₹452.97 lakh from ₹600.72 lakh in the prior year.

The company's basic and diluted earnings per share (EPS) stood at ₹0.92 for FY26, down from ₹1.59 in the previous year. For the half-year ended March 31, 2026, the company reported a profit of ₹12.27 lakh, compared to ₹176.25 lakh in the corresponding period of the previous year.

Financial Performance

Segment Reporting

The company operates in two business segments: manufacturing and trading of licences. Segment revenue for manufacturing stood at ₹10,369.29 lakh for FY26, while trading of licences contributed ₹1,459.85 lakh. Segment results for manufacturing were ₹274.52 lakh, and trading of licences reported ₹247.50 lakh for the year.

Board Decisions

In addition to the financial results, the board approved the appointment of Mr. Siddharth Sanghavi as Company Secretary and Compliance Officer effective May 30, 2026. The trading window for designated persons will remain closed for 48 hours following the publication of the results.

neelam linens & garments is not required to disclose Related Party Transactions for the year ended March 31, 2026, due to its listing on the NSE SME Platform. The company communicated this exemption to the National Stock Exchange of India Limited on May 30, 2026, citing Regulation 23(9) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulatory relief impacts the company's compliance obligations regarding corporate governance disclosures for the financial year.

The exemption stems from Regulation 15(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This provision specifies that compliance with certain corporate governance norms does not apply to listed entities with paid-up equity share capital not exceeding ₹10 crore and net worth not exceeding ₹25 crore, or to entities listed on the SME Exchange. Since Neelam Linens and Garments (India) Limited has listed its specified securities on the NSE SME Platform, it falls under the second category.

As a result, the company is not obligated to adhere to the disclosure requirements for Related Party Transactions as mandated under Regulation 23(9). The disclosure was signed by Bhavin Kantilal Jethwa, Managing Director of the company. The filing confirms that the company will not be subject to these specific governance provisions for the stated financial year.

Regulatory Background

The SEBI regulations provide exemptions for smaller entities listed on SME platforms to reduce compliance burdens. The specific regulations from which the company is exempt include sections 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, and clauses (b) to (i) of sub-regulation (2) of regulation 46, along with para C, D, and E of Schedule V.