Sambandam Spinning Mills reported a narrowed net loss of ₹5.74 crore for the financial year ended March 2026, improving from the ₹7.43 crore loss recorded in FY25. The company’s revenue from operations declined by 1.8% year-on-year to ₹2,636.6 crore, reflecting the challenging pricing environment in the textile sector.

The improvement in the bottom line was primarily driven by better operating margins and improved working capital management, despite a marginal decline in top-line sales. Gross production volume increased slightly to 87.39 lakh kg from 86.82 lakh kg in the previous year, while sale volume rose to 90.92 lakh kg from 88.89 lakh kg.

Financial Performance

The company’s EBITDA expanded by nearly 20% to ₹128.7 crore from ₹107.4 crore in FY25, indicating improved operational efficiency. This margin expansion occurred despite a steep decline in selling prices of yarn, which fell more sharply than raw material costs. Management attributed this to strategic shifts towards value-added counts and timely procurement of cotton during periods of reasonable pricing.

Operational Highlights

Capacity utilization remained steady at approximately 90% during the year, constrained by uncertainties in off-take. However, the company effectively managed power costs through its green energy initiatives. Solar and wind energy sources contributed 322.98 lakh kWh towards overall power requirements, helping sustain power cost per unit even as quantitative power consumption decreased.

Direct exports surged significantly to ₹154.5 crore from ₹48.6 crore in the previous year, offsetting some domestic market pressures. Conversely, merchandise exports declined to ₹6 crore from ₹11.7 crore. Domestic sales accounted for the bulk of revenue at ₹2,469.5 crore, down from ₹2,613.5 crore in FY25.

What the Numbers Show

A key divergence in the data is the widening gap between revenue decline and EBITDA growth. While revenue contracted by 1.8%, EBITDA expanded by 19.8%. This suggests that the company successfully passed on some cost efficiencies or benefited from lower input costs relative to output prices in specific segments, particularly value-added yarns. Additionally, the debtor turnover ratio improved to 13.26 times from 10.55 times, indicating stronger collection efficiency despite the sluggish market conditions.

Board and Corporate Actions

The 52nd Annual General Meeting is scheduled for September 18, 2026. Key agenda items include the reappointment of Joint Managing Director S. Dinakaran beyond the age of 70 years and the appointment of two new independent directors, T.C.A. Srinivasa Prasad and S. Prakash, to replace outgoing directors Dr. V. Sekar and D. Balasundaram.

The board did not recommend any dividend for FY26 due to the incurred loss. Statutory auditors P.N. Raghavendra Rao & Co. confirmed their eligibility for reappointment for the term ending at the 53rd AGM in 2027.

Sambandam Spinning Mills Limited has released its audited financial results for the quarter and year ended March 31, 2026. The company reported a net loss of ₹574.20 lakh for the full year, narrowing from a net loss of ₹743.31 lakh in the previous year. For the quarter ended March 31, 2026, the net loss was ₹295.23 lakh.

Revenue from operations for the year ended March 31, 2026, stood at ₹26,366.45 lakh, a decrease from ₹26,848.10 lakh in the prior year. Total income for the period was ₹26,500.98 lakh. The company's total expenses for the year amounted to ₹27,247.60 lakh, down from ₹28,011.84 lakh in the previous fiscal year.

Financial Performance

The board approved the financial results at its meeting held on May 23, 2026. The statutory auditors, M/s P.N. Raghavendra Rao & Co, issued an audit report with an unmodified opinion on the standalone and consolidated financial results. The company noted that it has classified certain assets as held for sale, resulting in no depreciation charge of ₹71.12 lakh for the period ended March 31, 2026, on those assets.

Board Decisions

In addition to the financial results, the board resolved to appoint M/s K.S.G. Subramanyam & Co as the Internal Auditor for FY 2026-27. Dr. C. Dhanapal was appointed as the Cost Auditor for the same fiscal year. The company confirmed there are no outstanding defaults on loans and debt securities.

The consolidated financial results, which include the figures of associate SPMM Health Care Services Private Limited, reflected a net loss of ₹566.60 lakh for the year. Total assets as per the consolidated balance sheet stood at ₹26,031.62 lakh as of March 31, 2026.