Supertex Industries reported a net profit of ₹16.15 lakh for the financial year ended March 31, 2026, reversing a net loss of ₹8.47 lakh recorded in FY25. The company’s revenue from operations fell 34.8% to ₹4,788.14 lakh, driven by a significant reduction in production volumes and subdued international trade conditions.

Financial Performance

The textile manufacturer saw its turnover drop from ₹7,339.73 lakh in FY25 to ₹4,788.14 lakh in FY26. Despite the decline in top-line growth, the company managed to improve its bottom line through better realizations and cost management. Profit before tax decreased slightly to ₹31.92 lakh from ₹37.59 lakh in the prior year. However, a lower deferred tax expense of ₹15.78 lakh, compared to ₹46.07 lakh in FY25, contributed to the turnaround in net profitability.

Operational Highlights

Production volumes declined by 34% to 2,771 metric tonnes in FY26, down from 4,193 metric tonnes in FY25. The company attributed this drop to a shift in product mix towards finer deniers, including nylon, and volatile international trade scenarios. Exports remained negligible during the year as price fluctuations and geopolitical tensions disrupted global supply chains. Management noted that margins continued to face strain but highlighted improved realizations despite rising input costs.

What the Numbers Show

A key divergence in the financials is the behavior of operating profits versus net profits. While profit before tax contracted by 15.1%, net profit swung from a loss to a gain. This reversal was primarily driven by a sharp reduction in deferred tax expenses, which fell by ₹30.29 lakh year-on-year. Additionally, finance costs increased to ₹284.78 lakh from ₹263.04 lakh, reflecting higher interest burdens that partially offset operational efficiencies.

Balance Sheet and Cash Flow

Total assets stood at ₹6,882.98 lakh as of March 31, 2026, down from ₹7,357.42 lakh in the previous year. Borrowings increased slightly, with total borrowings reaching ₹2,140.42 lakh (₹543.40 lakh non-current and ₹1,597.02 lakh current). The company generated ₹323.91 lakh from operating activities, compared to ₹420.00 lakh in FY25. Cash and cash equivalents rose to ₹85.31 lakh from ₹53.09 lakh, indicating improved liquidity management despite lower revenues.

Corporate Governance and AGM

The 40th Annual General Meeting is scheduled for September 30, 2026. Key agenda items include the re-appointment of Mr. Ramesh Kumar Mishra as Chairman and Managing Director and Mr. Piyush Patel as an Independent Director for a second term. The Board also recommended the re-appointment of M/s V.J. Talati & Co. as Cost Auditors for FY27. No dividend was declared for FY26, with profits retained to strengthen the capital base.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE881B01054/060317c1-0506-42f0-a2ae-2cda966de4ad.pdf

Supertex Industries Limited returned to profitability in the financial year ended March 31, 2026, posting a net profit of ₹16 lakh compared to a net loss of ₹8 lakh in the previous year. The company's revenue from operations fell 34.8% to ₹4,788 lakh from ₹7,340 lakh in FY25, while total income stood at ₹4,806 lakh. For the quarter ended March 31, 2026, the company reported a net profit of ₹3 lakh on revenue of ₹832 lakh.

Financial Performance

The turnaround to annual profitability was driven by a reduction in total expenses, which decreased to ₹4,774 lakh from ₹7,321 lakh in the prior year. Finance costs for the year amounted to ₹285 lakh, while employee benefits expense rose to ₹314 lakh from ₹238 lakh. The profit before tax for the year improved to ₹32 lakh from ₹38 lakh in the previous year.

Auditor Observations

The statutory auditors, M/s S.M. Gupta & Co., issued an unmodified opinion on the standalone financial results. However, the auditors drew attention to specific matters of emphasis regarding statutory dues. The company incurred expenses of ₹169.01 lakh during the year on which Tax Deducted at Source (TDS) of ₹20.84 lakh had not been paid. Additionally, the company had not paid Provident Fund dues of ₹10.33 lakh and Profession Tax dues of ₹2.00 lakh during the year under consideration.

Board Decisions

The Board of Directors approved the audited standalone financial results for the quarter and year ended March 31, 2026, following the recommendation of the Audit Committee. In addition to the financial results, the Board approved the re-appointment of Mr. Sanjay Sarju Mishra as the Internal Auditor for FY27. The firm M/s V.J. Talati & Co., Cost Accountants, was also re-appointed as Cost Auditors for the cost audit of the company for FY27.