Prakash Woollen & Synthetic Mills will hold its 47th Annual General Meeting on September 25, 2026, at 11:45 am at its registered office in Uttar Pradesh. The primary agenda involves shareholders approving the re-appointment of Vijay Kumar Gupta as Whole Time Director and Chief Financial Officer for three years, alongside adopting the audited financial statements for FY26.

The company reported a net loss of ₹88.77 lakh for the fiscal year ended March 31, 2026, reversing a profit of ₹125.65 lakh in FY25. The Board attributed the decline to a sudden increase in the cost of raw materials and boiler fuel, which the company stated it was unable to pass on to customers through price hikes.

Financial Performance Overview

Despite the operational loss, the company recorded a profit before depreciation and tax of ₹322.51 lakh in FY26, compared to a loss of ₹396.03 lakh in the prior year. However, high depreciation charges of ₹428.31 lakh pushed the pre-tax position into negative territory at ₹(57.98) lakh. Deferred tax adjustments further widened the final net loss to ₹88.77 lakh.

What the Numbers Show

The divergence between the operating profit before depreciation and the final net loss highlights the significant impact of non-cash expenses on the bottom line. While core operations generated a positive cash flow proxy of ₹322.51 lakh before depreciation, the heavy depreciation burden of ₹428.31 lakh—combined with deferred tax movements—resulted in a reported net loss. This suggests that while underlying operational margins may have improved relative to FY25's operating loss, fixed asset amortization remains a substantial drag on reported profitability.

Management Re-appointment

Shareholders will vote on a special resolution to re-appoint Mr. Vijay Kumar Gupta, who will turn 75 in August 2028, as Whole Time Director until March 31, 2030. His remuneration is set at ₹7 lakh per month. The Board noted that Mr. Gupta has been with the company since its incorporation in 1979 and played a key role in shifting the business focus from yarn manufacturing to mink blankets.

Other agenda items include the re-appointment of directors Ashish Gupta and Vijay Kumar Gupta by rotation. E-voting for the meeting will be open from September 22 to September 24, 2026, with a record date of September 19, 2026.

Prakash Woollen & Synthetic Mills reported a net loss of ₹88.77 lakh for the financial year ended March 31, 2026 (FY26), compared to a net profit of ₹125.65 lakh in FY25. The company’s revenue from operations increased marginally by 1.07% to ₹10,625.48 lakh, reflecting stable top-line performance despite broader industry headwinds.

The shift from profit to loss was driven by a significant rise in operating expenses, particularly raw material and fuel costs, which the company stated it could not fully pass on to customers. Consequently, the operating loss before tax widened to ₹105.80 lakh from ₹909.13 lakh in the previous year, though this represents a reduction in the absolute magnitude of the pre-tax deficit when excluding exceptional items.

Financial Performance

Total income for the year stood at ₹10,631.80 lakh, including other income of ₹6.32 lakh. Total expenses amounted to ₹10,737.60 lakh. Key cost components included:

Finance costs declined significantly to ₹311.89 lakh from ₹501.83 lakh in FY25, aided by an interest subsidy of ₹114.10 lakh received from the government. However, this saving was offset by a sharp increase in material consumption costs, which rose to ₹8,069.39 lakh from ₹6,924.62 lakh.

What the Numbers Show

A critical divergence in the financials is the impact of exceptional items on the bottom line. The company recorded exceptional income of ₹47.82 lakh in FY26, primarily from the profit on sale of land and building (₹40.33 lakh) and write-back of revaluation reserve (₹7.49 lakh). Without these non-recurring gains, the pre-tax loss would have been deeper at ₹105.80 lakh. In contrast, FY25 benefited from substantial exceptional items of ₹1,053.83 lakh, largely driven by asset sales, which masked underlying operational pressures in the prior year.

Balance Sheet and Governance

As of March 31, 2026, total assets stood at ₹11,890.21 lakh, with current assets comprising ₹5,582.86 lakh, including inventories of ₹4,377.19 lakh. Total liabilities were ₹11,890.21 lakh, with borrowings totaling ₹4,004.39 lakh (₹1,752.19 lakh long-term and ₹2,252.20 lakh short-term). The company holds cash and cash equivalents of ₹26.05 lakh.

The Board recommended no dividend for FY26. The 47th Annual General Meeting is scheduled for September 25, 2026, where shareholders will consider the re-appointment of Mr. Vijay Kumar Gupta as Whole Time Director & CFO beyond the age of 75 years, subject to special resolution approval.