Sri Ramakrishna Mills (Coimbatore) Ltd reported a standalone net profit of ₹2.06 crore for the quarter ended June 30, 2026, marking a significant improvement from the ₹0.72 crore loss recorded in the corresponding period of FY25. The company’s revenue from operations remained largely unchanged at ₹16.46 crore, down marginally from ₹16.47 crore in Q1FY25.

The turnaround was primarily driven by the textile segment, which returned to profitability. Segment results for textiles stood at ₹2.89 crore before tax and finance costs, contrasting sharply with the ₹0.19 crore loss reported in Q1FY25. In contrast, the real estate segment contributed no revenue or profit in the current quarter, following a significant one-off recognition in the previous fiscal year.

Financial Performance

The Board of Directors approved the unaudited financial results on August 13, 2026. Total income for the quarter was ₹16.68 crore, comprising ₹16.46 crore from operations and ₹0.22 crore from other income. Total expenses were contained at ₹14.68 crore, leading to a profit before exceptional items and tax of ₹1.99 crore.

Finance costs increased to ₹0.89 crore from ₹0.78 crore in the prior year quarter. Depreciation and amortization expenses decreased slightly to ₹0.63 crore from ₹0.65 crore. The company recorded a deferred tax benefit of ₹0.06 crore, resulting in the final net profit figure.

What the Numbers Show

A key divergence exists between the company’s operational segments. While the textile business has stabilized and returned to generating positive segment margins, the real estate segment remains dormant in terms of quarterly revenue recognition. This suggests the company’s near-term earnings visibility is currently dependent on the cyclical performance of its textile operations rather than project-based real estate income, which appears to have been fully recognized in the prior fiscal year’s annual figures.

Segment Analysis

The textile segment assets stood at ₹50.96 crore, while liabilities were ₹38.92 crore, resulting in capital employed of ₹12.03 crore. The real estate segment held assets of ₹49.93 crore against liabilities of ₹10.00 crore, with capital employed at ₹39.93 crore. Total capital employed across all segments rose to ₹51.97 crore from ₹21.44 crore in Q1FY25, reflecting the balance sheet impact of the real estate joint development agreement.

Regulatory and Audit Details

The financial statements were prepared in accordance with Ind AS and reviewed by the statutory auditors, M/s. CSK Prabhu & Co LLP. The auditors issued an unmodified opinion on the unaudited financial results. The company confirmed compliance with the new Labour Codes notified by the Government of India, stating that current provisions do not materially impact financial results. Previous year figures have been regrouped to ensure comparability.

Sri Ramakrishna Mills (Coimbatore) Ltd reported a net profit of ₹2,745.37 lakh for the financial year ended March 31, 2026, a significant increase from ₹364.82 lakh in the prior year. The company’s total income for the year rose to ₹9,811.94 lakh from ₹8,725.93 lakh in FY25, driven largely by a surge in revenue from its real estate segment following a joint development agreement. This strong performance underscores the strategic impact of the company's diversification into real estate development alongside its traditional textile operations.

For the quarter ended March 31, 2026, the company recorded a net profit of ₹3,019.81 lakh, reversing the net loss of ₹28.29 lakh reported in the corresponding quarter of the previous year. Revenue from operations for Q4FY26 stood at ₹5,140.16 lakh, a sharp increase compared to ₹1,216.02 lakh in Q4FY25. The Board of Directors approved the standalone audited financial results at a meeting held on May 29, 2026.

Segment Performance

The financial performance for the year was bolstered by the real estate segment, which reported revenue of ₹3,502.34 lakh. This revenue stems from a Joint Development Agreement with a real estate developer for land located at Ganapathy, Coimbatore. The company recognised revenue on the portion of land transferred to the developer upon losing control over it. In contrast, the textile segment reported revenue of ₹6,271.37 lakh for the year, a decrease from ₹7,574.45 lakh in the previous year.

Financial Position and Audit

The company’s total assets as of March 31, 2026, stood at ₹10,303.63 lakh, up from ₹6,922.13 lakh a year earlier. This increase was largely due to a rise in contract assets, which amounted to ₹4,246.91 lakh. Total equity improved to ₹4,985.01 lakh from ₹2,217.80 lakh in FY25. The statutory auditors, M/s. CSK Prabhu and Co LLP, issued an unmodified opinion on the audited financial results. The company stated that the new Labour Codes notified by the Government of India do not have a material impact on its financial results.