Southern Latex FY26 results: Net profit up 19% to ₹27.5 lakh

Southern Latex Limited reported a net profit of ₹27.5 lakh for the financial year ended March 31, 2026 (FY26), an increase from ₹23.15 lakh in FY25. The company, which has no active commercial operations, generated total income of ₹53.96 lakh, primarily derived from interest earned on retained earnings and rental income.

The Board of Directors did not recommend a dividend for the year, opting to conserve resources. The company continues to explore strategic partnerships and product developments to revive its business operations, which have been dormant due to market demand shifts for rubberized coir products.

Financial Performance

Total income remained relatively stable at ₹53.96 lakh compared to ₹53.90 lakh in the prior year. Expenses decreased significantly to ₹21.38 lakh from ₹26.47 lakh, contributing to the improvement in profitability. Earnings per share (EPS) rose to ₹0.37 from ₹0.31 in FY25.

Metric:	FY26	FY25
Total Income:	₹53.96 lakh	₹53.90 lakh
Total Expenses:	₹21.38 lakh	₹26.47 lakh
Net Profit:	₹27.50 lakh	₹23.15 lakh
EPS:	₹0.37	₹0.31

What the Numbers Show

The company’s financial profile is dominated by non-operational assets. As of March 31, 2026, Southern Latex held ₹638.6 lakh in loans and advances, constituting the vast majority of its current assets. This contrasts with cash and cash equivalents of just ₹3.11 lakh. The reliance on interest income from these advances and retained earnings underscores the absence of core business revenue, with rental income contributing ₹24 lakh to the total income.

Balance Sheet and Governance

Total assets stood at ₹708.82 lakh, up from ₹690.40 lakh in the previous year. The company has no borrowings or trade payables exceeding minor amounts. Promoter holding increased to 65.57% from 60.81%, with Klassic Industries Private Limited and Nortan Electricals Private Limited being the major shareholders.

The secretarial audit report noted that the company failed to intimate the stock exchange regarding the vacancy arising from the completion of the tenure of Woman Independent Director Mrs. Santhi. However, the Board appointed Mrs. K. Ashitha as a replacement Independent Director effective August 12, 2025, approved by shareholders in September 2025.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.95%	+11.79%	+3.89%	-15.93%	+9.78%	+226.99%

Southern Latex Limited's Board of Directors, meeting on August 5, 2026, approved the unaudited standalone financial results for the quarter ended June 30, 2026, reporting a net profit after tax of ₹1.31 lakhs. This represents a marginal increase from the ₹1.27 lakhs recorded in the corresponding quarter of the previous year. Beyond the financial update, the Board approved significant strategic shifts, including the alteration of the company's main objects clause and the adoption of a new corporate name to better reflect its future business activities, which diverge from its traditional association with the rubber industry.

The total income for the quarter remained stable at ₹6.00 lakhs, identical to the figure reported in Q1 FY25. This income was derived entirely from other income, as revenue from operations remained nil. Total expenses decreased slightly to ₹4.69 lakhs from ₹4.73 lakhs in the prior year quarter, driven primarily by a reduction in other expenses. The statutory auditors, Balaji & Thulasiraman, Chartered Accountants, issued an unmodified limited review opinion on the financial statements, which were reviewed and recommended by the Audit Committee.

Financial Performance: Q1 FY26

The following table details the key financial metrics for Southern Latex Limited across reported periods (Rs. in Lakhs):

Metric	Q1 FY26 (Jun 30, 2026) Unaudited	Q4 FY26 (Mar 31, 2026) Audited	Q1 FY25 (Jun 30, 2025) Unaudited	FY26 Full Year (Mar 31, 2026) Audited
Revenue from Operations	-	-	-	-
Other Income	6.00	35.96	6.00	53.96
Total Income	6.00	35.96	6.00	53.96
Employee Benefit Expense	2.10	2.40	1.80	8.14
Other Expenses	2.59	3.83	2.93	13.24
Total Expenses	4.69	6.23	4.73	21.38
Profit Before Tax	1.31	29.73	1.27	32.58
Tax Expenses (net)	-	5.08	-	5.08
Net Profit After Tax	1.31	24.65	1.27	27.50
Basic EPS (₹)	0.018	0.335	0.017	0.374
Diluted EPS (₹)	0.018	0.335	0.017	0.374
Paid-up Equity Share Capital	73.59	73.59	73.59	73.59

No tax expense was recorded for the current quarter, consistent with the year-ago period. Basic and diluted earnings per share stood at ₹0.018 each, compared to ₹0.017 in Q1 FY25. The paid-up equity share capital remained unchanged at ₹73.59 lakhs.

Strategic Shifts and Corporate Actions

The Board resolved to alter the main objects clause of the company, citing a strategic shift in business direction. Management noted that the existing name is closely associated with the rubber industry, whereas the proposed business activities are substantially different. Consequently, the Board deemed it appropriate to adopt a new name that accurately reflects the company's proposed objects and provides a suitable corporate identity for its future operations.

AGM Details and Shareholder Information

The 37th Annual General Meeting (AGM) is scheduled for Thursday, September 10, 2026, at 11:30 A.M., to be held via Video Conferencing or Other Audio Visual Means. Key dates for shareholders are as follows:

Record Date: September 3, 2026, for determining eligibility to vote at the AGM.
Book Closure: September 4, 2026, to September 10, 2026 (both days inclusive).
E-Voting Period: Commences on Monday, September 7, 2026, at 9:00 A.M., and concludes on Wednesday, September 9, 2026, at 5:00 P.M.

Mr. Satyaki Praharaj (M.No: F6458; CP No: 10755), Company Secretary in Practice, has been appointed as the scrutinizer for the e-voting process. The financial results were prepared in accordance with Indian Accounting Standard 34 (Ind AS 34).