The Board of Directors of Seasons Textiles approved the unaudited standalone financial results for the first quarter ended June 30, 2026, during a meeting held on August 13, 2026. The home furnishings fabrics manufacturer reported a net profit of ₹13.16 lakh, down from ₹17.40 lakh in the same period of FY25. Revenue from operations contracted by 25% to ₹575.57 lakh, compared to ₹769.72 lakh in Q1FY26.

Financial Performance

The company’s top-line decline was accompanied by a significant rise in finance costs, which jumped 55% year-on-year to ₹82.89 lakh from ₹53.59 lakh. This increase occurred despite a sharp drop in cost of materials consumed, which fell to ₹93.61 lakh from ₹286.27 lakh in the prior year period. Employee benefits expense saw a marginal increase to ₹137.56 lakh.

Other income contributed ₹3.13 lakh to the total income, up from ₹0.59 lakh in the previous year. The company recorded no exceptional items or discontinued operations during the quarter.

What the Numbers Show

A notable divergence exists between the company’s pre-tax profit and its net profit for the quarter. While Seasons Textiles reported a modest pre-tax profit of ₹3.95 lakh, the final net profit stood at ₹13.16 lakh. This discrepancy is driven entirely by a deferred tax credit of ₹9.21 lakh, whereas the current tax expense was nil. In the corresponding quarter of FY26, the deferred tax credit was higher at ₹12.92 lakh against a similar pre-tax profit of ₹4.48 lakh. This indicates that the company’s reported profitability remains heavily dependent on deferred tax adjustments rather than operational cash generation, as the pre-tax operating margin was just 0.7% on revenue.

Auditor Review

Bhatia and Bhatia, Chartered Accountants, issued a limited review report on the unaudited standalone financial results. The auditors stated that nothing came to their attention to cause them to believe that the financial statements had not been prepared in accordance with Indian Accounting Standard 34 (Ind AS 34) or contained any material misstatement. The results were reviewed by the Audit Committee and approved by the Board.

Seasons Textiles Limited returned to profitability in the financial year ended March 31, 2026, reporting a net profit of ₹16.55 lakh compared to a net loss of ₹33.53 lakh in the previous year. The company's revenue from operations stood at ₹2,329.86 lakh for the period, while total expenses decreased to ₹2,325.12 lakh from ₹2,770.72 lakh in FY25. The board has recommended the appointment of Mrs. Neelam Wadhwa as a Whole Time Director, subject to shareholder approval at the upcoming Annual General Meeting.

The company’s 40th Annual General Meeting is scheduled for August 19, 2026, at 12:30 p.m. via Video Conferencing. The Register of Members and Share Transfer Books will remain closed from August 13, 2026, to August 19, 2026, for the purpose of the AGM. The cut-off date for determining members eligible for remote e-voting is August 12, 2026.

Financial Performance

The financial performance for the year ended March 31, 2026, shows a significant turnaround. Profit before tax stood at ₹13.21 lakh, a reversal from the loss before tax of ₹30.91 lakh in the prior year. Earnings per share (EPS) improved to ₹0.22 from a negative ₹0.45 in FY25. The board did not recommend any dividend for the year, citing future growth plans.

Corporate Governance and Compliance

M/s Bhatia & Bhatia, Chartered Accountants, were appointed as Statutory Auditors for a period of five years up to the conclusion of the 41st AGM. The Secretarial Audit Report for the year did not contain any qualifications or adverse remarks. The company confirmed that it has not accepted any deposits from the public and has not issued any debt instruments during the financial year. The statutory auditors reported no fraud under Section 143(12) of the Companies Act, 2013.