Precot Limited has incorporated a wholly-owned subsidiary, Precot Holdings Limited, in Jebel Ali Free Zone (Jafza), Dubai, United Arab Emirates, effective July 6, 2026. The company received all incorporation documents on July 9, 2026. This strategic initiative aims to engage in international business and investments, broadening the company's global reach and operational footprint.

Subsidiary Details

The Board of Directors had approved the incorporation of this foreign subsidiary during its meeting held on September 2, 2025. The new entity is fully owned by Precot Limited and will operate under the regulations of the Jebel Ali Free Zone Authority Offshore Companies Regulations 2018.

Strategic Objectives

The primary objects of the subsidiary include engaging in international business and investments within and outside the UAE. Precot Holdings Limited is authorized to hold assets and equity of subsidiary corporations, incorporate or purchase stakes in other companies globally, and own freehold property acceptable by the Jebel Ali Free Zone Authority. This move leverages Dubai's position as a key global trade hub to facilitate Precot Limited's broader expansion objectives.

Precot Limited reported a 31% decline in net profit to ₹358.48 crore for the financial year ended March 31, 2026, down from ₹517.74 crore in the previous year. Revenue from operations increased 2.5% to ₹8,520.89 crore from ₹8,310.30 crore in FY25. The board recommended a final dividend of ₹4 per share, subject to shareholder approval at the ensuing Annual General Meeting.

The company’s profit for the period was impacted by a one-time incremental gratuity charge of ₹213.56 lakh due to the implementation of new Labour Codes effective November 21, 2025. Additionally, the company recognized a restatement loss of ₹314.84 lakh during the year. The statutory auditors, VKS Aiyer & Co., issued an unmodified opinion on the standalone and consolidated audited financial results.

Financial Performance

The standalone financial results for the year ended March 31, 2026, showed a decrease in profitability despite higher income. Total income rose to ₹8,887.08 crore from ₹8,725.09 crore in the previous year. Total expenses increased to ₹8,387.66 crore from ₹8,045.96 crore. Finance costs for the year stood at ₹372.03 crore, up from ₹286.86 crore in FY25.

Operational Details

The operations of the company primarily relate to the Textiles segment. In February 2025, the board decided to discontinue the operations of a spinning unit located in Hindupur, Andhra Pradesh, due to unsustainable losses. Consequently, the working results of this unit have been disclosed under Discontinued Operations. The loss from discontinued operations for the year ended March 31, 2025, included ₹1,119 lakh towards employee settlement.

The company’s subsidiary, Suprem Associates, does not have any business operations for the period. As a result, the standalone and consolidated financial results remain identical. The board meeting to approve these results was held on May 16, 2026.