Suryavanshi Spinning Mills Limited reported a net profit of ₹18.35 lakh for the quarter ended June 30, 2026 (Q1FY27), marking a significant turnaround from a net loss of ₹60.62 lakh in the corresponding period of FY26. The company’s revenue from operations surged 93% year-on-year to ₹217.36 lakh, driven by improved operational efficiency in its continuing business segments. This return to profitability is notable given the company’s accumulated losses of ₹2,464.23 lakh as of June 30, 2026, and a balance sheet where current liabilities exceed current assets. The Board of Directors approved these unaudited financial results on August 12, 2026, alongside key corporate governance changes.

The financial recovery stems primarily from the continuing operations segment, which generated a pre-tax profit of ₹34.26 lakh, compared to a profit of ₹14.39 lakh in Q4FY26 and a loss of ₹20.75 lakh in Q1FY25. However, the discontinued operations segment—specifically the spinning division classified as assets held for sale—reported a loss of ₹15.91 lakh after tax, largely due to a ₹17.44 lakh loss on the sale of non-current assets. Despite this drag, the overall bottom line turned positive, aided by lower employee benefit expenses and controlled material costs relative to the revenue surge.

Financial Performance Highlights

Revenue from operations rose to ₹217.36 lakh from ₹112.67 lakh in Q1FY26. Other income contributed ₹2.25 lakh, down significantly from ₹22.93 lakh in the prior year quarter. Total expenses increased to ₹185.35 lakh from ₹156.35 lakh, driven by higher finance costs of ₹14.03 lakh (up from ₹9.62 lakh QoQ but down from ₹20.12 lakh YoY) and other expenses of ₹92.37 lakh. Notably, cost of materials consumed stood at ₹59.20 lakh, while change in inventories provided a positive contribution of ₹13.25 lakh.

What the Numbers Show

The divergence between the continuing and discontinued operations reveals the strategic shift underway at Suryavanshi Spinning Mills. While the core continuing business delivered a robust pre-tax profit of ₹34.26 lakh, the discontinued spinning division incurred a loss of ₹15.91 lakh due to asset write-downs and sales losses. This indicates that the company’s profitability is increasingly dependent on its non-spinning activities or residual operations, as the spinning division—discontinued since November 2023 due to unviability—continues to drain resources through asset disposal costs. The absence of tax expense in Q1FY27, despite the profit, suggests the utilization of past loss carry-forwards or MAT credit entitlements, preserving cash flow.

Corporate Governance Changes

In addition to the financial results, the Board of Directors took note of the resignation of Mr. Rishabh Jain from the post of Company Secretary and Compliance Officer, effective August 12, 2026. Mr. Jain cited career advancement and professional growth as reasons for his departure. Simultaneously, the Board approved the appointment of Ms. Pratyansha Pandey as the new Company Secretary, effective the same date, based on the recommendations of the Nomination and Remuneration Committee. Ms. Pandey holds qualifications in Company Secretary, LL.B., and B.Com.

Auditor’s Qualified Conclusion

The statutory auditors, K.S. Rao & Co., Chartered Accountants, issued a qualified review report on the interim financial results. The qualification arises because no provision has been made in the books of account for interest payable on outstanding unpaid statutory dues of Tax Deducted at Source (TDS), amounting to ₹2.10 lakh (including arrears of ₹1.38 lakh up to March 31, 2026). Apart from this matter, the auditors stated that nothing came to their attention to suggest the statement does not disclose required information or contains material misstatement under Regulation 33 of the SEBI (LODR) Regulations, 2015.

The company’s total reserves excluding revaluation reserves stood at a negative ₹1,345.70 lakh at the end of FY26. The Board also approved the Directors’ Report for the fiscal year ended March 31, 2026. All figures are presented in accordance with Ind AS 34 and have been reviewed by the Audit Committee.

Rajender Kumar Agarwal, Promoter and Managing Director of Suryavanshi Spinning Mills Limited, has increased his shareholding in the company by acquiring 2,40,480 equity shares via an off-market transaction. This acquisition, executed on June 29, 2026, raises Agarwal's total stake to 47.26% of the company's total voting capital, strengthening his control over the textile manufacturer. The transaction was disclosed to the stock exchange in compliance with regulatory requirements governing substantial acquisitions of shares.

The shares were disposed of by Westend Developers Limited, a public shareholder, which held 4.90% of the total voting capital prior to the sale. Following the disposal, Westend Developers Limited's holding in Suryavanshi Spinning Mills Limited reduced to zero. The off-market transfer was settled on June 29, 2026, and reported to BSE Limited on June 30, 2026.

Prior to the acquisition, Agarwal held 20,79,253 shares, representing 42.36% of the total voting capital. Following the purchase of 2,40,480 shares, his holding has increased to 23,19,733 shares. The equity share capital of Suryavanshi Spinning Mills Limited stands at ₹4,90,85,760, divided into 49,08,576 equity shares of ₹10 each.

The filing was submitted to BSE Limited under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation requires promoters and shareholders to disclose changes in their shareholding to ensure transparency in the market. The mode of acquisition was specified as off-market, and there were no changes reported in the encumbered shares or other instruments such as warrants or convertible securities.

Shareholding Details

The following table outlines the changes in Rajender Kumar Agarwal's shareholding in Suryavanshi Spinning Mills Limited:

Suryavanshi Spinning Mills Limited, a government-recognised export house, is headquartered in Secunderabad, Telangana. The company operates in the textile sector and is registered with the Corporate Identification Number (CIN) L14220TG1978PLC002390.