Paos Industries Limited reported a net profit of ₹114.98 crore for the quarter ended June 30, 2026, marking a 144.7% year-on-year increase from ₹46.98 crore in Q1FY25. The Ludhiana-based manufacturer saw revenue from operations rise 5.7% to ₹2,390.23 crore, up from ₹2,261.36 crore in the prior year period. This strong profitability turnaround, following a loss of ₹211.15 crore in FY25, signals improved operational efficiency and margin expansion for the company.

The Board of Directors approved the standalone unaudited financial results on August 11, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee on the same day. M/s P. C. Goyal & Co., Chartered Accountants, the statutory auditors, issued a limited review report confirming compliance with Indian Accounting Standards (Ind AS) and SEBI regulations.

Financial Performance Highlights

Revenue from operations grew to ₹2,390.23 crore, supported by higher sales volumes. Other income declined slightly to ₹8.76 crore from ₹9.51 crore. Total expenses increased modestly by 1.8% to ₹2,269.73 crore, primarily due to a rise in cost of materials consumed to ₹1,772.26 crore from ₹1,612.59 crore. Employee benefits expense remained stable at ₹222.30 crore, while finance costs rose to ₹69.06 crore from ₹65.73 crore.

What the Numbers Show

The divergence between revenue growth (5.7%) and expense growth (1.8%) drove the significant improvement in profitability. Profit before tax surged 211.1% to ₹129.26 crore. Deferred tax expense was recorded at ₹14.28 crore, compared to a deferred tax credit of ₹5.43 crore in Q1FY25. The company’s paid-up equity share capital remains unchanged at ₹610.36 crore, with 61,03,600 equity shares outstanding. Earnings per share more than doubled to ₹1.88, reflecting the bottom-line strength.

Regulatory and Operational Notes

The financial results were prepared in accordance with Ind AS notified under the Companies Act, 2013. As a single-segment company, Paos Industries did not provide separate segment disclosures as per Ind AS 108. The company assessed the impact of the four new Labour Codes notified by the Government of India on November 21, 2025, and concluded that the impact is not material to the financial statements. The figures for the quarter ended March 31, 2026, are balancing figures derived from audited full-year data. The company has no subsidiaries, associates, or joint ventures.

Paos Industries reported a net loss of ₹211.15 crore for the financial year ended March 31, 2026, widening from a loss of ₹77.10 crore in the previous year, as total expenses surged. Revenue from operations for FY26 rose to ₹8803.89 crore from ₹5463.62 crore in the corresponding period of the previous year, while total expenses increased to ₹9031.59 crore from ₹5675.81 crore. For the quarter ended March 31, 2026, the company recorded a net loss of ₹120.32 crore on a revenue of ₹1859.66 crore.

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 reviewed by the Audit Committee and published in newspapers "The Pioneer" and "Nawan Zamana" on May 28, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. M/s P.C. Goyal & Co., Chartered Accountants, the statutory auditors, issued an audit report with an unmodified opinion on the standalone financial results. The Board also appointed M/s Rajiv Rajeev & Associates, Chartered Accountants, as internal auditors for a period of one year effective from April 1, 2026, to March 31, 2027.

The financial statements were prepared in accordance with Indian Accounting Standards (Ind AS). The company noted that the implementation of the four Labour Codes notified by the Government of India did not have a material impact on its financial statements. The figures for the corresponding previous period have been regrouped or restated where necessary to align with current disclosures.

Financial Performance

The company's total comprehensive loss for FY26 stood at ₹210.93 crore, compared to a loss of ₹77.10 crore in FY25. Basic and diluted earnings per share (EPS) for the year were reported at (₹3.46), widening from (₹1.26) in the previous year. The paid-up equity share capital remained unchanged at ₹610.36 crore during the period.

Balance Sheet Highlights

The total assets of the company stood at ₹4651.63 crore as of March 31, 2026, down from ₹4964.60 crore in the previous year. Total equity was reported at (₹1796.85) crore, indicating a deficit, while total liabilities stood at ₹6448.48 crore. Current borrowings decreased to ₹3638.21 crore from ₹4319.93 crore in the prior year.