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.

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.

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.

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.

Shree Rajasthan Syntex reported a narrowed net loss of ₹607.64 lakh for the financial year ended March 31, 2026, compared to a loss of ₹1,437.69 lakh in the previous year. Revenue from operations for FY26 rose to ₹1,386.08 lakh from ₹1,330.74 lakh in FY25. The company’s total comprehensive loss for the year stood at ₹839.31 lakh.

Financial Performance

The company’s operating performance showed improvement with total expenses decreasing to ₹2,097.51 lakh in FY26 from ₹3,028.09 lakh in the prior year. For the quarter ended March 31, 2026, the company reported a net loss of ₹175.13 lakh on revenue of ₹333.08 lakh. The basic and diluted earnings per share for FY26 were reported at (₹2.50), compared to (₹5.13) in the previous year.

Asset Position and Liabilities

As of March 31, 2026, the company’s total assets stood at ₹2,613.91 lakh, while total liabilities were ₹1,853.53 lakh. Current liabilities exceeded current assets by ₹307.31 lakh, a factor highlighted by the auditors. The equity share capital increased to ₹4,073.73 lakh from ₹2,801.23 lakh in the previous year, following a preferential issue of equity shares.

Auditor’s Report and Going Concern

Statutory auditors Doogar & Associates issued an unmodified opinion on the financial results. However, the report drew attention to a material uncertainty related to the company’s ability to continue as a going concern, citing the net loss and the excess of current liabilities over current assets. Management believes the going concern basis is appropriate based on future business projections and operational improvements.

Board Approvals and Fund Utilization

The Board of Directors approved the audited standalone financial results and authorized the sale, transfer, or disposal of the company’s undertaking and assets in Dungarpur, Rajasthan, subject to shareholder approval. The company raised ₹1,076.56 lakh through a preferential issue in November 2025, utilizing ₹633.96 lakh by December 31, 2025, and an additional ₹375.21 lakh during the quarter ended March 31, 2026. The unutilized funds amount to ₹67.39 lakh.