Oswal Yarns Limited reported a net loss of ₹12.43 lakh for FY26, widening from a loss of ₹11.98 lakh in FY25. The textile manufacturer’s gross revenue contracted 31% to ₹137.20 lakh, driven by sluggish market conditions and rising input costs.

The company will hold its 44th Annual General Meeting on September 30, 2026, to adopt these financial results and reappoint key board members. Shareholders holding shares as of September 23, 2026, are eligible to vote via e-voting between September 27 and September 29, 2026.

Board and Management Reappointments

The special business agenda focuses on the reappointment of three directors for five-year terms:

• Bharatt Oswall as Whole-time Director, with a gross monthly remuneration of ₹15,500. His past remuneration was ₹1.69 lakh in FY26.
• Tej Paul Oswal as Managing Director (Corporate Affairs), who will not draw any salary during his tenure.
• Nipun Vyas as an Independent Director, commencing March 4, 2026.

Additionally, Ms. Vama Oswal retires by rotation and offers herself for reappointment as a director.

Financial Performance in FY26

The explanatory statement reveals a contraction in top-line revenue and continued losses. Gross revenue fell to ₹137.20 lakh in FY26 from ₹199.39 lakh in FY25. Profit before tax stood at a loss of ₹12.51 lakh, compared to a loss of ₹13.93 lakh in the prior year.

The management attributed the losses to sluggish market conditions, rising input costs, and low realizations in the woollen yarn and shoddy yarn segments. No foreign investments or collaborations were made during FY26.

What the Numbers Show

A notable divergence exists between the proposed remuneration for Whole-time Director Bharatt Oswall and his historical compensation. While he received a gross monthly remuneration of ₹1.69 lakh in FY26, the proposed package for the new five-year term is fixed at ₹15,500 per month. This represents a significant reduction in stated monthly pay, aligning with the company’s precarious financial position and the decision to have Managing Director Tej Paul Oswal serve without salary.

Oswal Yarns Limited reported a net loss of ₹12.43 crore for the financial year ended March 31, 2026, widening from a loss of ₹11.98 crore in the previous year. The company's total income from operations fell to ₹137.20 crore from ₹199.39 crore in FY25, primarily due to a decline in net sales. The basic and diluted earnings per share (EPS) stood at (₹0.31) for the current year, compared to (₹0.30) in the prior year.

The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, in a meeting held on May 27, 2026. The results were accompanied by an unmodified auditor's report issued by M/s Subash Vipan & Co, Chartered Accountants, the statutory auditors of the company. The meeting commenced at 03:00 P.M. and concluded at 03:30 P.M.

Financial Performance

For the quarter ended March 31, 2026, the company reported a net loss of ₹4.28 crore, compared to a loss of ₹5.05 crore in the corresponding quarter of the previous year. Total income from operations for the quarter stood at ₹23.13 crore, down from ₹58.46 crore in the same period last year. Total expenses for the quarter were ₹27.49 crore.

Annual Results Breakdown

The annual financial results highlight a continued contraction in revenue and profitability. The purchase of stock in trade decreased to ₹117.26 crore in FY26 from ₹134.89 crore in FY25. Employee benefits expense increased to ₹16.12 crore from ₹14.61 crore, while finance costs reduced significantly to ₹0.04 crore from ₹2.52 crore.

Balance Sheet and Cash Flow

The company's total assets as of March 31, 2026, stood at ₹354.40 crore, down from ₹367.39 crore in the previous year. Total equity decreased to ₹296.76 crore from ₹309.19 crore. Cash and cash equivalents as of March 31, 2026, were ₹33.46 crore, a decrease from ₹47.58 crore at the end of the previous financial year. The net cash generated from operating activities was negative at ₹10.95 crore, compared to a positive cash flow of ₹27.11 crore in FY25.