Shree Rajasthan Syntex Q1FY27 net loss narrows 47% to ₹69.91 lakh
Shree Rajasthan Syntex reported a narrowed net loss of ₹69.91 lakh in Q1FY27, down 47% YoY, as operating revenue grew 10.3% to ₹376.14 lakh. The improvement was driven by lower power and fuel costs and a significant rise in other income. Auditors continue to flag going concern risks due to persistent losses and liquidity pressures.
*this image is generated using AI for illustrative purposes only.
Shree Rajasthan Syntex Limited reported a net loss of ₹69.91 lakh for the quarter ended June 30, 2026, marking a substantial improvement from the ₹133 lakh loss recorded in the corresponding period of FY25. The company’s Board of Directors approved the unaudited standalone financial results on August 12, 2026. The results were subsequently published via newspaper advertisements in "Vagad Doot" (Hindi edition) and "The Indian Express" (English edition) on August 13, 2026, pursuant to Regulation 47(1)(b) of the SEBI (LODR) Regulations, 2015.
Operating revenue rose 10.3% year-on-year to ₹376.14 lakh, up from ₹341 lakh in Q1FY25. This growth outpaced the increase in cost of materials consumed, which stood at ₹241.42 lakh compared to ₹203 lakh in the prior year quarter. Total income for the period reached ₹407.49 lakh, supported by other income of ₹31.35 lakh, a significant jump from ₹3 lakh in Q1FY25.
Financial Performance
The reduction in net loss was primarily driven by lower power and fuel expenses and reduced finance costs. Power and fuel expenses fell sharply to ₹74.15 lakh from ₹148.26 lakh in Q4FY26 and ₹34 lakh in Q1FY25. Finance costs also decreased to ₹15.19 lakh from ₹29 lakh in the same quarter last year.
| Metric | Q1FY26 (₹ lakh) | Q1FY25 (₹ lakh) | Change |
|---|---|---|---|
| Revenue from Operations | 376.14 | 341.00 | +10.3% |
| Other Income | 31.35 | 3.00 | +945% |
| Total Income | 407.49 | 344.00 | +18.5% |
| Total Expenses | 477.40 | 477.00 | ~Flat |
| Net Loss | (69.91) | (133.00) | -47.4% |
Earnings per share stood at a loss of ₹0.17, compared to a loss of ₹0.05 in Q1FY25. The total comprehensive income for the period was a loss of ₹77.83 lakh, including other comprehensive income items that will not be reclassified to profit or loss. Paid-up equity share capital remained unchanged at ₹4,073.73 lakh.
What the Numbers Show
A notable divergence exists between the growth in operating revenue and the surge in other income. While revenue grew modestly by 10.3%, other income jumped nearly tenfold to ₹31.35 lakh from ₹3 lakh in the previous year’s quarter. This suggests that while core textile operations are stabilizing, non-operating gains played a disproportionately large role in improving the overall income statement position during the quarter.
Going Concern Risks
Auditors Doogar & Associates flagged material uncertainties related to the company’s ability to continue as a going concern. The report noted that current liabilities exceed current assets and that the company has incurred continuous losses over several years. Management maintains that the going concern basis is appropriate based on future business projections and mitigating factors, including improved operational performance.
Fund Utilization
The company also disclosed the utilization of funds raised through a preferential issue of equity shares in November 2025. Of the total proceeds of ₹1,076.56 lakh:
- ₹255 lakh was utilized to repay unsecured inter-corporate loans.
- ₹65 lakh was used to pay dues to workmen and employees.
- ₹456.56 lakh was allocated for working capital requirements.
- ₹232.61 lakh had been utilized for capital expenditure as of March 31, 2026, with an additional ₹26.69 lakh spent in Q1FY26.
As of June 30, 2026, ₹40.70 lakh remains unutilized for capital expenditure purposes. No deviation in the use of funds was reported.
Historical Stock Returns for Shree Rajasthan Syntex
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.76% | -7.18% | -33.33% | -39.96% | -48.56% | 0.0% |
Will the significant reduction in power and fuel expenses be sustainable in upcoming quarters, or was this a one-time anomaly driven by seasonal or regulatory factors?
How will the auditors' 'going concern' warning impact the company's ability to secure additional debt financing or attract new equity investors in the near term?
Given that other income surged nearly tenfold while core revenue growth remained modest, what specific non-operating strategies is management pursuing to diversify income streams beyond textile operations?
20
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
