Rainbow Denim corrects rounding error in FY26 results
Rainbow Denim Limited revised its FY26 financial results to correct a rounding error in the Statement of Assets and Liabilities, reporting a net profit of ₹2342.32 lacs. Revenue for the year rose to ₹27054.15 lacs, while total assets reached ₹28363.33 lacs. The auditors, Krishan Rakesh & Co., issued an unqualified opinion on the results.
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Rainbow Denim Limited has reported a net profit of ₹2342.32 lacs for the financial year ended March 31, 2026, following the submission of revised audited financial results to correct a clerical error. The company identified that figures in the Statement of Assets and Liabilities were previously rounded off in ten lakhs instead of lakhs, necessitating a refiling to ensure accuracy and compliance with Regulation 33 of the SEBI (LODR) Regulations, 2015. The revision does not alter any audited financial figures approved by the Board of Directors, nor does it impact the Cash Flow Statement or other accompanying disclosures.
Revenue from operations for the year increased to ₹27054.15 lacs, compared to ₹16431.47 lacs in the previous year. Total revenue for FY26 stood at ₹27211.12 lacs. The company’s total expenses for the year amounted to ₹24868.80 lacs, up from ₹15080.48 lacs in FY25. For the quarter ended March 31, 2026, the company recorded a net profit of ₹486.54 lacs on revenue from operations of ₹6847.04 lacs.
Financial Performance
The revised results show significant growth in both the quarterly and annual performance metrics. Basic and diluted earnings per share (EPS) for the year ended March 31, 2026, were reported at 17.63, compared to 10.50 in the corresponding period of the previous year. The Board of Directors approved these results at a meeting held on May 30, 2026.
| Metric | Year Ended 31.03.2026 (₹ in Lacs) | Year Ended 31.03.2025 (₹ in Lacs) |
|---|---|---|
| Revenue from operations | 27054.15 | 16431.47 |
| Total Revenue | 27211.12 | 16475.71 |
| Total Expenses | 24868.80 | 15080.48 |
| Net Profit for the period | 2342.32 | 1395.23 |
| Basic EPS | 17.63 | 10.50 |
Assets and Liabilities
The correction specifically addressed the rounding unit in the Statement of Assets and Liabilities. Total assets as of March 31, 2026, were reported at ₹28363.33 lacs, a significant increase from ₹16486.18 lacs in the prior year. This growth was driven by a rise in both non-current and current assets. Non-current assets increased to ₹13931.78 lacs, largely due to capital work in progress and property, plant, and equipment. Current assets stood at ₹14431.55 lacs, bolstered by inventories and trade receivables.
On the liabilities side, total equity and liabilities matched the total assets at ₹28363.33 lacs. Equity increased to ₹6103.88 lacs from ₹3761.56 lacs. The company’s borrowings also saw a substantial rise, with long-term borrowings at ₹7912.06 lacs and short-term borrowings at ₹12590.94 lacs as of March 31, 2026.
Auditor's Report
The financial results were audited by Krishan Rakesh & Co., Chartered Accountants, who issued an unqualified audit opinion. The auditors confirmed that the results are presented in accordance with Regulation 33 of the SEBI (LODR) Regulations, 2015, and provide a true and fair view of the company's financial performance. The report included an emphasis of matter noting that the company had not received books of accounts and relevant papers from the former liquidator or resolution professional as of September 21, 2023, when the new management took over.
How does the company plan to manage the significant increase in total borrowings, which now exceed ₹20,000 lacs?
Will the surge in capital work in progress translate to increased production capacity in the coming fiscal year?
What strategies will be employed to sustain the current revenue growth rate given the rising cost of operations?
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