Soma Textiles & Industries reported a standalone net profit of ₹2.76 crore for the quarter ended June 30, 2026, marking a significant decline from the previous quarter and year. The company’s revenue from operations was ₹28.39 crore in Q1FY26, compared to ₹50.82 crore in Q4FY25 and ₹20.5 lakh in the corresponding quarter of FY25. This financial performance reflects the company’s ongoing strategic shift from textile trading to highway construction works contracts, a transition completed by the December 2025 quarter.

The Board of Directors approved the unaudited financial results on July 31, 2026, in compliance with Regulation 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 statutory auditors Pipara & Co LLP, Chartered Accountants, Ahmedabad. The consolidated financial results mirror the standalone figures due to the full impairment of the investment in its associate, Soma Textiles FZC.

Financial Performance Highlights

The company’s total income for Q1FY26 was ₹28.57 crore, comprising ₹28.39 crore from operations and ₹18 lakh from other income. Total expenses amounted to ₹26.22 crore, with road work and site expenses constituting the largest component at ₹25.74 crore. Profit before exceptional items and tax stood at ₹23.5 lakh. Exceptional items contributed ₹41 lakh to the bottom line, primarily from a ₹47 lakh profit on the sale of fixed assets, partially offset by a ₹6 lakh foreign exchange loss on loans given to Soma Textiles FZC.

Change in Promoter Control and Segment Shift

A material development during the period was the change in promoter and management control pursuant to a Share Purchase Agreement dated July 9, 2025. The existing promoters, including Surendra Kumar Somany and Arvind Kumar Somany, sold their entire shareholding to new promoters Roadway Solutions India Infra Limited, Ameet Harjinder Gadhoke, and Teja Ranade Gadhoke. Consequently, the earlier management resigned, and a new board was constituted with Ameet Harjinder Gadhoke as Managing Director and Teja Ranade Gadhoke as Non-Executive Chairperson.

This leadership change coincided with a fundamental business model shift. Until September 2025, the company identified ‘Textile’ trading as its primary segment. From December 2025 onwards, it operates solely in highway construction works contracts under Ind AS 108. No separate segment information is provided for the current quarter as only one reportable segment exists.

What the Numbers Show

The reliance on exceptional items remains a notable feature of the profit structure. While operational profit before exceptional items was ₹23.5 lakh, exceptional items added ₹41 lakh, meaning non-recurring gains accounted for approximately 60% of the pre-tax profit. This divergence suggests that core operational profitability in the new highway construction segment is still stabilizing, with road work expenses consuming nearly 90% of revenue. Additionally, the full impairment of the associate investment means that any future losses from Soma Textiles FZC will not impact the consolidated bottom line, though profits will only be recognized after offsetting previously unrecognized losses.

Soma Textiles & Industries has submitted the paper cutting of the public notice for its 88th Annual General Meeting to the stock exchanges. The notice was published in the Financial Express (English Edition) and Ekin (Bengali Edition) on July 7, 2026. The company informed the exchanges regarding the completion of the dispatch of the Annual Report for the financial year 2023-24, along with the Notice of AGM, E-voting information, and Book Closure details.

The 88th Annual General Meeting is scheduled for July 31, 2024, at 3:00 P.M. through Video Conferencing or Other Audio Visual Means. The Board of Directors has recommended a final dividend of 5%, equivalent to ₹0.5 per equity share of ₹10 each for the financial year 2023-24, subject to shareholder approval. The record date for dividend entitlement is July 17, 2024, and payment is scheduled on or before August 14, 2024.

Key Meeting Details

The Register of Members and Share Transfer Books will remain closed from July 17, 2024, to July 31, 2024. Remote e-voting facilities will be available from July 28, 2024, at 9:00 A.M. to July 30, 2024, at 5:00 P.M. Shareholders as on the cut-off date of July 24, 2024, are eligible to vote.