Santosh Fine Fab Limited reported a widened net loss of ₹14.31 lakh for the quarter ended June 30, 2026 (Q1FY27), compared to a net loss of ₹4.87 lakh in the corresponding period of FY26. The deterioration in profitability was driven by a 15% year-on-year decline in revenue from operations to ₹356.76 lakh and the absence of other income, which had contributed ₹0.25 lakh in the prior year. The company’s Board of Directors approved the unaudited financial results on August 11, 2026, under Regulation 33 read with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

Revenue from operations stood at ₹356.76 lakh in Q1FY27, down from ₹419.99 lakh in Q1FY26. Other income was nil during the current quarter, whereas it recorded ₹0.25 lakh in the same period last year. Total expenses amounted to ₹376.01 lakh, resulting in a pre-tax loss of ₹19.24 lakh. The company benefited from a deferred tax credit of ₹4.94 lakh, reducing the final net loss to ₹14.31 lakh. In contrast, the company reported a profit of ₹5.28 lakh in the immediately preceding quarter (Q4FY26).

Operational Highlights

Cost of materials consumed decreased to ₹147.05 lakh in Q1FY27 from ₹140.13 lakh in Q1FY26, while employee benefits expenses rose to ₹64.13 lakh from ₹58.95 lakh. Finance costs reduced significantly to ₹11.36 lakh from ₹17.43 lakh in the prior year period. Depreciation and amortization expenses remained stable at ₹4.57 lakh. The company has only one reportable segment, manufacturing of fabrics, making segment reporting under Ind AS 108 not applicable.

What the Numbers Show

The divergence between revenue decline and expense management highlights margin pressure. While total expenses decreased sequentially from ₹386.36 lakh in Q4FY26 to ₹376.01 lakh in Q1FY27, they remained higher than the revenue generated, leading to an operating loss. The absence of other income, which contributed positively in previous periods, further exacerbated the bottom-line impact. The deferred tax benefit of ₹4.94 lakh provided some relief but was insufficient to offset the operational shortfall.

Regulatory and Audit Details

The statutory auditors, Jhunjhunwala Jain & Associates LLP, conducted a limited review of the results in accordance with Standard on Review Engagements (SRE) 2410. CA Randhir Kumar Jhunjhunwala issued an unmodified opinion, stating that nothing came to their attention to suggest material misstatement. The Audit Committee reviewed the results on August 11, 2026, before board approval. Additionally, the company declared that Regulation 32 of the SEBI LODR Regulations, regarding deviation or variation in proceeds of public issues, is not applicable.

Santosh Fine-Fab Limited has released its audited financial results for the quarter and year ended March 31, 2026. The company reported a net profit after tax of ₹5.28 lakh for the fourth quarter of FY26. In comparison, the net profit after tax for the same period in the previous year was ₹16.33 lakh.

For the full fiscal year ended March 31, 2026, the company recorded a net profit after tax of ₹2.45 lakh. This marks an increase from the net profit of ₹1.35 lakh reported in the fiscal year ended March 31, 2025.

Financial Performance

The total income from operations for the year ended March 31, 2026, stood at ₹1,650.54 lakh, a decrease from ₹1,862.75 lakh in the previous year. For the quarter ended March 31, 2026, the total income from operations was ₹391.08 lakh, compared to ₹476.43 lakh in the corresponding quarter of the previous year.

The paid-up equity share capital remained constant at ₹343.32 lakh throughout the reported periods. The earnings per share (EPS) basic for the year ended March 31, 2026, was ₹0.07, compared to negative ₹0.04 in the previous year.

Key Financial Metrics

The financial results were approved by the Board of Directors and signed by Santosh R Tulsiyan, Managing Director. The complete results are available on the BSE website and the company's official website.