super spinning mills reported a consolidated net profit of ₹55.89 lakh for the quarter ended June 30, 2026, marking a sharp recovery from a net loss of ₹5.19 lakh recorded in the same quarter of the previous fiscal year. The Board of Directors approved the unaudited financial results on August 6, 2026, highlighting that the profit was primarily driven by the company’s continuing rental services segment, which posted robust operational performance despite ongoing losses from discontinued textile activities.

The statutory auditors, C S K Prabhu and Co LLP, issued a limited review report dated August 6, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were prepared in accordance with Ind AS 34 and other generally accepted accounting principles in India. No dividend was declared during the quarter.

Financial Performance Overview

The company’s total income from operations stood at ₹149.51 lakh, comprising net sales from rental services. Other income contributed ₹8.53 lakh, primarily from interest income. Total expenses for the quarter amounted to ₹102.13 lakh, including employee benefit expenses of ₹6.65 lakh, power and fuel costs of ₹4.87 lakh, and finance costs of ₹26.25 lakh. Depreciation and amortization expenses were recorded at ₹32.15 lakh.

Profit before tax from continuing operations rose to ₹55.92 lakh from ₹48.86 lakh in Q1FY26. After accounting for a deferred tax benefit of ₹5.81 lakh, profit from continuing operations reached ₹61.72 lakh. In contrast, discontinued textile operations incurred a loss of ₹5.83 lakh after tax, compared to a loss of ₹41.34 lakh in the prior year period.

Segment Analysis and Asset Position

The rental services segment remains the sole contributor to revenue, generating ₹149.51 lakh in sales. This segment reported a profit before tax and finance costs of ₹82.17 lakh, compared to a loss of ₹75.26 lakh in Q1FY26. The textile segment, classified as discontinued, reported no revenue but incurred expenses of ₹4.63 lakh, leading to a pre-tax loss of the same amount.

Total assets under continuing operations decreased slightly to ₹8,974.30 lakh from ₹8,980.59 lakh at the end of FY26. Liabilities associated with continuing operations fell to ₹1,667.84 lakh from ₹1,730.01 lakh. Conversely, assets related to discontinued operations remained minimal at ₹3.52 lakh, while liabilities stood at ₹2,315.07 lakh.

What the Numbers Show

The most significant development in Super Spinning Mills’ Q1FY27 results is the decoupling of profitability from its legacy textile business. With textile operations fully discontinued, the company’s financial health is now entirely dependent on its rental services segment. The shift from a consolidated net loss of ₹5.19 lakh in Q1FY26 to a profit of ₹55.89 lakh in Q1FY27 underscores the stabilizing effect of the rental portfolio. However, the persistence of liabilities totaling ₹2,315.07 lakh against negligible assets of ₹3.52 lakh in the discontinued segment indicates that the company still carries substantial residual obligations from its former textile activities, which may continue to impact cash flows through finance costs and potential restructuring charges.

Super Spinning Mills Limited will hold its 64th Annual General Meeting on Friday, August 28, 2026, at 3:30 P.M. through Video Conferencing or Other Audio Visual Means. The primary agenda includes receiving, considering, and adopting the Annual Audited Financial Statements for the fiscal year ended March 31, 2026, and seeking shareholder approval for the re-appointment of Mr. Sanjay Krishna Ramamurthi (DIN: 08730627) as a Non-Executive Non-Independent Director. He retires by rotation and is eligible for re-appointment. This meeting marks a critical juncture for shareholders as the company continues its strategic transition from textile manufacturing to real estate development and leasing.

The meeting will be conducted in compliance with Ministry of Corporate Affairs Circulars permitting virtual attendance, with the deemed venue at the company’s registered office in Coimbatore. Remote e-voting facilities are provided by MUFG Intime India Private Limited. The voting period for remote e-voting begins on Tuesday, August 25, 2026, at 9:00 A.M. IST and ends on Thursday, August 27, 2026, at 5:00 P.M. IST. Members holding shares as of the cut-off date, Friday, August 21, 2026, are eligible to vote. The Register of Members and share transfer books will remain closed from Saturday, August 22, 2026, to Friday, August 28, 2026, inclusive.

Financial Performance Overview

For the fiscal year ended March 31, 2026, Super Spinning Mills reported a total income of ₹687.06 lakhs. Revenue from operations stood at ₹662.73 lakhs, primarily derived from its continuing "Rental and Real Estate Services" segment after discontinuing its textile operations. Other income contributed ₹24.33 lakhs. However, the company incurred a significant net loss of ₹1,640.09 lakhs for the year. This loss includes a profit before tax from continuing operations of ₹172.41 lakhs, offset by a substantial loss of ₹1,413.94 lakhs from discontinued operations. The directors have not recommended any dividend for the year due to these losses.

Strategic Initiatives and Asset Monetization

The company is actively pursuing an asset-light growth strategy focused on monetizing its land bank. Key initiatives include leasing out properties at the Super Sara unit in Hindupur and developing a Grade-A commercial property in Coimbatore through a joint development partnership. Shareholders previously approved the sale of certain land parcels at the registered office to Mr. Sumanth Ramamurthi and Elgi Electric and Industries Limited to reduce indebtedness. Additionally, a joint development agreement for land in Hindupur is under negotiation with a potential non-related party developer.

Audit and Compliance Observations

Statutory Auditors C S K Prabhu & Co LLP highlighted specific compliance gaps regarding audit trails. The software used for payroll and property records lacks an audit trail feature at both application and database levels. Furthermore, the accounting software "Tally" did not enable the audit trail feature at the database level throughout the year. Management has committed to implementing these features in the current financial year. Secretarial Auditors MDS & Associates LLP noted delays in integrated financial filings and belated reporting of certain events on stock exchanges, attributing these to administrative reasons.

What the Numbers Show

The financial data reveals a sharp divergence between operational stability and historical baggage. While the continuing rental business generated a positive profit before tax of ₹172.41 lakhs, the overall bottom line was heavily impacted by losses from discontinued operations. This underscores the company's transitional phase, where legacy costs from the exited textile segment continue to weigh on consolidated results despite the new focus on real estate assets.