Sreechem Resins FY26 results: Net loss narrows 38% to ₹22.9 lakh
- Net loss narrowed 38% YoY to ₹22.9 lakh from ₹36.9 lakh in FY25
- Revenue from operations declined 16% to ₹2,975.3 lakh due to subdued demand
- Other income surged 75% to ₹28.8 lakh driven by gains on investment sales
- Inventory turnover slowed to 61 days from 38 days as stock levels rose
- Borrowings increased to ₹285.2 lakh while finance costs fell to ₹21.5 lakh
*this image is generated using AI for illustrative purposes only.
Sreechem Resins reported a net loss of ₹22.9 lakh for the financial year ended March 31, 2026, narrowing from the ₹36.9 lakh loss recorded in FY25. The improvement reflects cost rationalization efforts despite a challenging demand environment for its specialty chemicals business.
Revenue from operations fell 16% year-on-year to ₹2,975.3 lakh, down from ₹3,550.3 lakh in the prior period. The decline was driven by subdued order inflows for products used in coal and coke applications, a trend the company attributes to volatility in global coal prices affecting customer viability.
Financial Performance
The company’s total income decreased to ₹3,004.1 lakh from ₹3,566.7 lakh in FY25. Total expenses also contracted to ₹3,034.4 lakh, compared to ₹3,618.7 lakh previously. While revenue declined, operating profit margins improved slightly to -1.0% from -1.5% in the prior year, indicating better cost management relative to sales volume.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue from Operations | ₹2,975.3 lakh | ₹3,550.3 lakh | -16.2% |
| Net Loss | ₹22.9 lakh | ₹36.9 lakh | -37.9% |
| Other Income | ₹28.8 lakh | ₹16.4 lakh | +75.2% |
| Earnings Per Share (Loss) | ₹0.55 | ₹0.88 | +37.5% |
Other income rose significantly to ₹28.8 lakh from ₹16.4 lakh, primarily due to gains on the sale of investments and mutual funds. This non-operating income helped cushion the bottom line against the operational losses.
Balance Sheet and Cash Flow
As of March 31, 2026, Sreechem Resins held total assets of ₹1,766.6 lakh, an increase from ₹1,726.5 lakh in the previous year. Current assets stood at ₹932.2 lakh, with inventories rising to ₹500.3 lakh from ₹375.0 lakh. This inventory buildup coincided with lower sales, resulting in an inventory turnover period extending to 61 days from 38 days in FY25.
Borrowings increased to ₹285.2 lakh from ₹223.3 lakh, leading to a debt-equity ratio of 0.20 times, up from 0.16 times. Despite higher borrowings, finance costs declined to ₹21.5 lakh from ₹32.1 lakh, aided by lower interest rates and controlled inventory levels. The company maintained a current ratio of 2.60, down from 3.00 in the prior year.
What the Numbers Show
A key divergence in the results is the improvement in net loss alongside declining revenue. While top-line pressure persisted due to weak demand for resin products used in refractories and steel plants, the company successfully reduced its loss magnitude by nearly 38%. This was achieved through a combination of lower employee benefit expenses (₹350.8 lakh vs ₹359.7 lakh) and reduced finance costs. However, the rise in inventory levels suggests potential working capital strain as production outpaced sales realization during the period.
Historical Stock Returns for Sreechem Resins
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | +4.54% | 0.0% | -31.82% | -20.88% | 0.0% |
How might the recent stabilization in global coal prices impact Sreechem Resins' order inflows and revenue recovery in the upcoming fiscal year?
What specific strategies is the company implementing to reduce the extended inventory turnover period from 61 days back to healthier levels?
Could the increased reliance on other income, such as gains from mutual fund sales, become a recurring buffer for operational losses, or was this a one-time event?
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