Santosh Fine Fab turns profitable in FY26 with ₹2.39 crore net profit

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Reviewed by
Riya DScanX News Team
Key Highlights
  • Santosh Fine Fab posted a net profit of ₹2.39 crore in FY26, turning around from a ₹1.38 crore loss in FY25
  • Gross income declined slightly to ₹1,640.82 crore from ₹1,661.99 crore in the previous year
  • Finance charges dropped to ₹52.99 crore from ₹59.72 crore, aiding the bottom-line recovery
  • Book closure for the 44th AGM is set from September 19 to September 25, 2026
  • No dividend was recommended for FY26 as the board aims to conserve profits
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Santosh Fine Fab Ltd has filed its annual report for the financial year ended March 31, 2026, revealing a return to profitability. The company reported a net profit after tax of ₹2.39 crore for FY26, reversing a net loss of ₹1.38 crore in the previous fiscal year.

The textile manufacturer also announced the book closure dates for its 44th Annual General Meeting (AGM). The records will be closed from September 19, 2026, to September 25, 2026. Shareholders holding equity shares as of September 25, 2026, will be eligible to attend the meeting scheduled for September 25, 2026, at 11:30 am in Mumbai.

Financial Performance

The company's gross income decreased slightly from ₹1,661.99 crore in FY25 to ₹1,640.82 crore in FY26. Despite the marginal dip in top-line revenue, operational efficiencies and better working capital management contributed to the bottom-line turnaround. Profit before interest and depreciation stood at ₹69.18 crore, down from ₹81.00 crore in the prior year.

Metric FY26 (₹ crore) FY25 (₹ crore)
Gross Income 1,640.82 1,661.99
Profit Before Interest & Depreciation 69.18 81.00
Finance Charges 52.99 59.72
Net Profit After Tax 2.39 (1.38)

Finance charges reduced to ₹52.99 crore from ₹59.72 crore in FY25, aiding the improvement in net results. The board did not recommend any dividend for the year under review, aiming to conserve profits.

Corporate Governance and Meetings

Radha Sushil Kumar Sharma, Company Secretary and Compliance Officer, issued the intimation regarding the AGM on August 25, 2026. The meeting agenda includes the adoption of standalone financial statements and the reappointment of Director Ashok V. Tulsiyan, who retires by rotation.

The remote e-voting period for the AGM begins on September 22, 2026, at 9:00 am and ends on September 24, 2026, at 5:00 pm. Members can cast their votes electronically via the NSDL e-Voting system.

What the Numbers Show

The shift from a net loss of ₹1.38 crore in FY25 to a net profit of ₹2.39 crore in FY26 highlights the impact of reduced finance costs and improved operational margins. While gross income contracted marginally, the decrease in interest expenses by nearly ₹7 crore was a primary driver behind the profitability turnaround.

Historical Stock Returns for Santosh Fine Fab

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Will Santosh Fine Fab maintain its dividend-free policy in FY27 to further strengthen its balance sheet, or will it resume payouts once cash reserves stabilize?

How sustainable is the reduction in finance charges, and does the company plan to accelerate debt repayment to improve net margins beyond the current turnaround?

What specific operational efficiencies drove the bottom-line improvement despite a 1.3% decline in gross income, and can these margin gains be sustained if revenue growth resumes?

Santosh Fine Fab Reports FY26 Net Profit of ₹2.45 Lakh

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Reviewed by
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Key Highlights

Santosh Fine Fab Ltd reported a net profit of ₹2.45 lakh for the fiscal year ended March 31, 2026, compared to ₹1.35 lakh in the previous year. Total income for FY26 was ₹1,650.54 lakh, with total expenses at ₹1,649.44 lakh. For the quarter ended March 31, 2026, the company posted a net profit of ₹5.28 lakh on a total income of ₹391.08 lakh.

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Santosh Fine Fab Ltd has announced its audited financial results for the quarter and year ended March 31, 2026. The Board of Directors approved the results during a meeting held on May 22, 2026. The company reported a net profit of ₹2.45 lakh for the full fiscal year, an improvement over the ₹1.35 lakh recorded in the previous year.

Financial Performance for FY26

For the year ended March 31, 2026, the company reported a total income of ₹1,650.54 lakh, compared to ₹1,662.75 lakh in the prior year. Total expenses for the period amounted to ₹1,649.44 lakh, slightly lower than the ₹1,658.55 lakh incurred in the previous year. The profit before tax for the year stood at ₹1.10 lakh.

The company’s earnings per share (EPS) after extraordinary items for the year was ₹0.07, compared to a negative EPS of ₹0.04 in the previous year. The paid-up equity share capital remained constant at ₹343.33 lakh.

Quarterly Results

In the quarter ended March 31, 2026, Santosh Fine Fab Ltd reported a net profit of ₹5.28 lakh. This is a significant increase from the net profit of ₹16.33 lakh reported in the same quarter of the previous year. Total income for the quarter was ₹391.08 lakh, while total expenses stood at ₹386.36 lakh.

The table below summarizes the key financial figures for the quarter and year ended March 31, 2026:

Particulars Quarter Ended 31.03.26 (Audited) Year Ended 31.03.26 (Audited)
Total Income ₹391.08 lakh ₹1,650.54 lakh
Total Expenses ₹386.36 lakh ₹1,649.44 lakh
Net Profit for the period ₹5.28 lakh ₹2.45 lakh
EPS (Basic & Diluted) ₹0.15 ₹0.07

Assets and Liabilities

As of March 31, 2026, the company's total assets stood at ₹1,571.64 lakh, up from ₹1,537.37 lakh in the previous year. Current assets accounted for the majority, totaling ₹1,358.77 lakh. The company's equity and liabilities totaled ₹1,571.64 lakh, with current liabilities at ₹931.73 lakh.

Regulatory Disclosures

The company confirmed that it has no outstanding qualified borrowings or incremental qualified borrowings as of the financial year ended March 31, 2026. Additionally, Santosh Fine Fab Ltd stated that certain regulations, including those related to related party transactions and deviations for public issue proceeds, are not applicable to it due to its paid-up share capital and net worth being below specified thresholds.

Historical Stock Returns for Santosh Fine Fab

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Given Santosh Fine Fab's razor-thin profit margins with total expenses consuming over 99.9% of revenue, what strategic initiatives could the company pursue to meaningfully improve profitability in FY27?

With current liabilities at ₹931.73 lakh against current assets of ₹1,358.77 lakh, how sustainable is the company's working capital position if revenue were to decline further in the coming fiscal year?

As Santosh Fine Fab's paid-up capital and net worth remain below regulatory thresholds exempting it from certain compliance requirements, could future growth plans trigger these thresholds and significantly increase its compliance burden?

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