Santosh Fine Fab Q1FY27 net loss widens to ₹14.31 lakh on revenue slide
Santosh Fine Fab Limited reported a widened net loss of ₹14.31 lakh for Q1FY27, driven by a 15% YoY revenue decline to ₹356.76 lakh and nil other income. The Board approved the unaudited results on August 11, 2026, under SEBI LODR Regulations, with statutory auditors Jhunjhunwala Jain & Associates LLP providing an unmodified limited review opinion.
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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. This operational shortfall signals continued margin pressure for the fabric manufacturer, as expenses remained sticky despite lower sales volumes.
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. The results were subsequently published in newspapers, including Active Times and Mumbai Lakshadeep, on August 12, 2026, as part of regulatory compliance disclosures.
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).
| Particulars | Q1FY27 (₹ Lakh) | Q4FY26 (₹ Lakh) | Q1FY26 (₹ Lakh) |
|---|---|---|---|
| Revenue from Operations | 356.76 | 381.72 | 419.99 |
| Other Income | - | 9.36 | 0.25 |
| Total Income | 356.76 | 391.08 | 420.24 |
| Total Expenses | 376.01 | 386.36 | 426.73 |
| Profit/(Loss) Before Tax | (19.24) | 4.72 | (6.49) |
| Net Profit/(Loss) | (14.31) | 5.28 | (4.87) |
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. Earnings per share (basic and diluted) stood at (0.41) for the quarter.
What specific strategic initiatives is Santosh Fine Fab planning to implement to reverse the 15% revenue decline and improve operational margins in Q2FY27?
How will the rising employee benefit costs, which increased despite lower sales volumes, impact the company's long-term cost structure and profitability outlook?
Given the widened net loss and sticky expenses, is management considering any capital restructuring or cost-cutting measures to stabilize the balance sheet?
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