Simplex Mills Company reported a net loss of ₹3.74 lakh for the first quarter ended June 30, 2026, marking a significant improvement from the ₹11.29 lakh loss recorded in the preceding quarter. The company, which operates exclusively in the textile segment, generated no revenue from operations during the period. Instead, total income was derived entirely from other income amounting to ₹15.41 lakh. The narrowing of the deficit was primarily driven by a substantial reduction in other expenses, which fell to ₹10.42 lakh from ₹17.86 lakh in the previous quarter, highlighting improved cost containment despite the absence of core business activity.

The Board of Directors approved the unaudited financial results at a meeting held on August 3, 2026, in compliance with Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, Khandelwal & Mehta LLP. The company’s paid-up equity share capital remains unchanged at ₹300.04 lakh, comprising shares with a face value of ₹1,000 each. Basic and diluted earnings per share stood at ₹(12.45), compared to ₹(37.62) in the previous quarter.

Financial Performance Overview

The company’s financial position for the quarter reflects continued operational dormancy regarding core business activities, with all income derived from non-operating sources. Finance costs remained relatively stable at ₹6.58 lakh, while employee benefits expense was ₹2.15 lakh. Notably, depreciation and amortisation expense was nil for the quarter, contrasting with ₹0.21 lakh in the previous period. The total expenses for the quarter amounted to ₹19.15 lakh, down from ₹26.88 lakh in the prior period.

Auditor Emphasis on Recoverable Advances

Khandelwal & Mehta LLP included an emphasis of matter paragraph in their review report regarding loans and advances recoverable from a company whose net worth is eroded. The auditors noted that these advances have not been impaired. This decision is based on management’s view, supported by projections submitted by the concerned entity, that the advances are recoverable. The auditors stated that their conclusion is not modified in respect of these matters. Additionally, the auditor highlighted that the figures for the quarter ended March 31, 2026, are balancing figures between audited full-year figures and unaudited year-to-date figures up to the third quarter.

What the Numbers Show

The most significant aspect of Simplex Mills’ Q1FY26 performance is the sharp contraction in other expenses, which dropped from ₹17.86 lakh in Q4FY26 to ₹10.42 lakh in Q1FY26. This reduction was the primary driver behind the narrowing of the net loss from ₹11.29 lakh to ₹3.74 lakh. With zero revenue from operations, the company’s ability to reduce losses hinges entirely on controlling operating costs and managing finance charges, rather than generating top-line growth. The reliance on other income as the sole source of funds highlights the ongoing lack of commercial activity in its textile segment, making cost discipline the critical factor for financial stability.

Simplex Mills Company Limited has scheduled its 28th Annual General Meeting for August 4, 2026, to transact business including the adoption of financial statements for the year ended March 31, 2026, and the appointment of a new independent director. The meeting will be conducted through Video Conferencing (VC) and Other Audio-Visual Means (OAVM) at 11:00 a.m. IST, allowing shareholders to participate remotely without a physical venue. The company has engaged National Securities Depository Limited (NSDL) to facilitate the e-voting and VC/OAVM facilities.

The Board of Directors approved the appointment of Shri Shrikrushna N. Pawar (DIN: 11763684) as an Additional Director in the Non-Executive Independent category effective June 16, 2026. Shareholders are asked to approve his appointment for a term of five consecutive years ending June 15, 2031. The resolution also seeks approval for his continuation as director after he attains the age of 75 years during his term. This appointment fills the vacancy anticipated by the retirement of existing Independent Director Shri Manish Harshey on February 19, 2027.

The AGM will also address the re-appointment of Shri Shekhar R Singh (DIN: 03357281), who retires by rotation and is eligible for re-appointment. Singh serves on the Audit Committee, Nomination and Remuneration Committee, and Stakeholder Relationship Committee. Shri Binit Kumar, Practicing Company Secretary, has been appointed as the Scrutinizer to oversee the voting process.

Key Meeting Details

The Register of Members and Transfer Books will remain closed from July 29, 2026, to August 4, 2026, to determine shareholder eligibility. Only members whose names appear in the register or list of beneficial owners as of the close of business hours on July 28, 2026, will be entitled to attend and vote at the meeting. Members can join the meeting 30 minutes before and 15 minutes after the scheduled start time, with the facility available to at least 1,000 members on a first-come, first-served basis.