Sky Industries FY26 Net Profit Rises on Consolidated Basis; Declares Dividend

Sky Industries held its Board of Directors meeting on Friday, May 15, 2026, approving the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The statutory auditors, CGCA & Associates LLP, issued an unmodified audit opinion on both the standalone and consolidated financial results. The board recommended a final dividend of Re. 1/- (10%) per equity share of face value of Rs. 10/- each for the financial year ended March 31, 2026, subject to shareholder approval at the ensuing Annual General Meeting. The audited financial results extract was subsequently published in Business Standard (English) and Pratakhkal (Marathi) on May 16, 2026, pursuant to Regulation 30 and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Standalone Financial Performance

Sky Industries posted standalone revenue from operations of ₹8,434.44 lakhs for the year ended March 31, 2026, compared to ₹8,267.18 lakhs in the previous year. Net profit after tax for the year stood at ₹592.02 lakhs, compared to ₹611.89 lakhs in the prior year. The following table summarises the key standalone financial metrics:

Metric:	Q4 FY26	Q3 FY26	Q4 FY25	FY26	FY25
Revenue from Operations (₹ Lakhs):	2,045.78	2,063.16	1,872.92	8,434.44	8,267.18
Total Income (₹ Lakhs):	2,004.10	2,084.39	1,902.59	8,454.43	8,411.11
Total Expenses (₹ Lakhs):	1,770.02	1,870.32	1,734.80	7,642.67	7,593.84
Profit Before Tax (₹ Lakhs):	235.65	183.48	167.79	782.73	817.27
Net Profit After Tax (₹ Lakhs):	176.49	139.78	120.63	592.02	611.89
Basic EPS (₹):	2.24	1.77	1.53	7.50	7.75

The standalone balance sheet as at March 31, 2026 reflects total assets of ₹9,084.47 lakhs, up from ₹6,533.96 lakhs as at March 31, 2025. Total equity stood at ₹5,075.47 lakhs. Capital work in progress rose significantly to ₹2,993.64 lakhs from ₹762.75 lakhs, reflecting ongoing investment activity. Net cash flow from operating activities for the year was ₹556.25 lakhs, while net cash used in investing activities was ₹2,266.53 lakhs.

Consolidated Financial Performance

On a consolidated basis, which includes wholly owned subsidiary Skytech Textiles Private Limited, Sky Industries reported revenue from operations of ₹8,641.32 lakhs for the year ended March 31, 2026, compared to ₹8,408.83 lakhs in the previous year. Consolidated net profit after tax for the year was ₹606.95 lakhs, compared to ₹582.09 lakhs in the prior year. The table below presents the key consolidated financial highlights:

Metric:	Q4 FY26	Q3 FY26	Q4 FY25	FY26	FY25
Revenue from Operations (₹ Lakhs):	2,111.07	2,118.06	1,919.59	8,641.32	8,408.83
Total Income (₹ Lakhs):	2,070.32	2,139.58	1,949.53	8,663.58	8,546.16
Total Expenses (₹ Lakhs):	1,826.49	1,920.27	1,783.89	7,835.21	7,765.42
Profit Before Tax (before exceptional items) (₹ Lakhs):	243.83	219.31	165.64	828.38	780.74
Profit Before Tax (after exceptional items) (₹ Lakhs):	245.39	188.73	165.64	799.36	780.74
Net Profit After Tax (₹ Lakhs):	184.93	145.01	125.21	606.95	582.09
Basic EPS (₹):	2.34	1.84	1.59	7.69	7.38

Consolidated total assets stood at ₹9,084.47 lakhs as at March 31, 2026, against ₹6,533.96 lakhs in the prior year. Net cash flow from operating activities on a consolidated basis was ₹572.86 lakhs for the year, while net cash used in investing activities was ₹2,265.73 lakhs.

Dividend and Key Board Decisions

The board recommended a final dividend of Re. 1/- (10%) per equity share of face value of Rs. 10/- each for the financial year ended March 31, 2026, subject to shareholder approval at the ensuing Annual General Meeting. The board also approved the appointment of M/s KSCA & Associates LLP (Firm Registration No.: W101177) as Internal Auditor of the Company for the financial year 2026-27, effective April 01, 2026.

On the exceptional items front, the board recognised a net expense of Rs. 29.02 lakhs under exceptional items in both standalone and consolidated financial results for the year ended March 31, 2026, relating to the incremental impact of the four Labour Codes notified by the Government of India on November 21, 2025.

Board and Management Appointments

The board approved several key appointments during the meeting. The following table summarises the details of each appointment:

Appointee:	Role	Tenure
Mr. Abhishek Jain (DIN: 11695801):	Additional Director – Independent Director	May 16, 2026 to May 15, 2029
Mr. Anoop Dubey (DIN: 11695863):	Whole Time Director	May 16, 2026 to May 15, 2029
Mr. Prabhakar Mishra Neeraj:	Senior Managerial Personnel (AGM – Operations)	Effective May 16, 2026

Mr. Abhishek Jain is a qualified Company Secretary with over four years of experience in corporate governance, compliance management, and regulatory advisory. Mr. Anoop Dubey brings over 13 years of experience in the textile industry, with expertise in engineering management, plant maintenance, and manufacturing processes, and has been appointed in connection with expansion and upcoming operations at the Gujarat Plant. Mr. Prabhakar Mishra Neeraj has over 26 years of experience in the textile industry, heading operations at the Navi Mumbai Plant, and has been appointed in place of Mr. Gopalakrishnan Mani, consequent to his resignation effective from March 31, 2026. All director appointments are subject to shareholder approval at the ensuing Annual General Meeting.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.19%	+2.57%	+5.14%	-3.30%	+4.10%	+10.17%

Sky Industries Limited has entered into a strategic Memorandum of Understanding with the Government of Gujarat for establishing a new manufacturing facility in the state. The MoU was signed on May 02, 2026, in Surat, Gujarat, as part of the Investment Promotion activity for Vibrant Gujarat Regional Conference.

Project Details and Investment

The agreement focuses on establishing a Technical Textiles & Apparels manufacturing unit in Gujarat with a substantial financial commitment from the company.

Parameter:	Details
Investment Amount:	₹49.00 crore
Project Type:	Technical Textiles & Apparels manufacturing unit
Location:	State of Gujarat
Signing Date:	May 02, 2026
Signing Venue:	Surat, Gujarat
Expected Commencement:	2026

MoU Terms and Government Support

The Memorandum of Understanding serves as a facilitation arrangement between Sky Industries Limited and the Government of Gujarat. Importantly, this agreement does not constitute a binding commercial contract but establishes a framework for cooperation.

Under the terms of the MoU, the Government of Gujarat will provide comprehensive support to facilitate the project implementation:

Assistance in obtaining necessary permissions and registrations
Support for required approvals and clearances
Coordination with concerned state government departments
Facilitation as per applicable state policies, rules, and regulations

Regulatory Compliance and Disclosure

The company has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was signed by Maikal Raorani, Whole Time Director & CFO, ensuring proper corporate governance protocols are followed.

Compliance Details:	Information
Regulation:	SEBI Regulation 30
Parties:	Sky Industries Limited and Government of Gujarat
Shareholding in Partner Entity:	Not applicable
Transaction Value:	₹49.00 crore (proposed investment)

Strategic Significance

This MoU represents Sky Industries Limited's expansion strategy into the technical textiles and apparels manufacturing sector. The choice of Gujarat as the location aligns with the state's industrial infrastructure and supportive business environment. The project is expected to contribute to the company's manufacturing capabilities and market presence in the technical textiles segment.

The signing of this MoU during the Vibrant Gujarat Regional Conference demonstrates the company's commitment to participating in the state's industrial development initiatives and leveraging the investment promotion opportunities provided by the Gujarat government.