Pasari Spinning Mills Q1 Results: Net loss widens to ₹3.62 lakh
Pasari Spinning Mills Ltd posted a Q1FY26 net loss of ₹3.62 lakh, down from ₹11.15 lakh profit YoY, as total income collapsed to ₹1.42 lakh with zero operating sales. The board reappointed an internal auditor while a Karnataka High Court stay prevents the sale of assets linked to a ₹703 lakh dispute with CCI.
*this image is generated using AI for illustrative purposes only.
Pasari Spinning Mills Limited reported a net loss of ₹3.62 lakh for the quarter ended June 30, 2026, marking a reversal from the ₹11.15 lakh profit posted in the corresponding period of FY25. The company’s total income for the quarter stood at ₹1.42 lakh, driven entirely by other operating income, as net sales and income from operations were nil. This represents a significant decline from the ₹16.93 lakh total income recorded in Q1FY25.
The shift to a loss position was primarily driven by expenses exceeding income. Total expenses for the quarter amounted to ₹5.04 lakh, comprising other expenses of ₹5.04 lakh, with no costs attributed to raw materials, employee benefits, or finance costs. In contrast, total expenses in Q1FY25 were ₹5.78 lakh, which included depreciation and amortisation of ₹1.93 lakh.
What the Numbers Show
A critical observation from the financial statement is the complete absence of operating revenue alongside a sharp contraction in other income. With net sales at zero and other operating income falling 91.6% year-on-year (from ₹16.93 lakh to ₹1.42 lakh), the company’s ability to generate cash from core or ancillary operations appears severely constrained. The resulting loss per share was ₹0.03, compared to earnings of ₹0.08 per share in Q1FY25.
Governance and Legal Updates
During its meeting on August 12, 2026, the Board of Directors reappointed Mr. Rayaluru Venkatapathi, a cost accountant, as the Internal Auditor. His term continues until revoked by the Board or upon his resignation.
The auditor’s limited review report highlighted an ongoing dispute with Cotton Corporation of India Limited (CCI) regarding cotton purchases. Execution proceedings were initiated against the company for alleged dues of ₹703.12 lakh, leading to a Proclamation of Sale for certain immovable properties. However, the Hon’ble High Court of Karnataka granted an interim stay on these proceedings on January 6, 2026. The company has fully provided for security deposits of ₹63.90 lakh given to CCI and disclosed the remaining disputed amount of ₹639.23 lakh as a contingent liability.
| Metric | Q1FY26 | Q1FY25 | Change |
|---|---|---|---|
| Total Income | ₹1.42 lakh | ₹16.93 lakh | -91.6% |
| Total Expenses | ₹5.04 lakh | ₹5.78 lakh | -12.8% |
| Net Profit / (Loss) | -₹3.62 lakh | ₹11.15 lakh | N/A |
| EPS (Diluted) | -₹0.03 | ₹0.08 | N/A |
The financial results were reviewed by the Audit Committee and approved by the Board. The independent limited review was conducted by Rao & Emmar, Chartered Accountants.
Historical Stock Returns for Pasari Spinning Mills
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | +0.81% | -9.36% | -4.62% | -29.71% | +58.97% |
What is the current status of the High Court of Karnataka's interim stay on the execution proceedings against Pasari Spinning Mills' immovable properties, and when is the next hearing scheduled?
Given that net sales were nil for the quarter, does the company have a concrete roadmap to resume core spinning operations or is it focusing solely on asset liquidation and dispute resolution?
How might the resolution of the ₹639.23 lakh contingent liability with Cotton Corporation of India impact the company's balance sheet strength and future creditworthiness?
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