Swadeshi Polytex Limited reported a net profit of ₹91.52 lakh for the quarter ended June 30, 2026, rising 7.3% year-on-year from ₹85.31 lakh in Q1FY25. The company’s Board of Directors approved the unaudited standalone financial results in a meeting held on August 13, 2026.

The Ghaziabad-based firm continued to report nil revenue from operations for the third consecutive quarter, maintaining its focus on investment income rather than core business activities. Total income for the quarter stood at ₹172.83 lakh, down slightly from ₹178.48 lakh in the corresponding period last year.

Financial Performance

The company’s profitability was sustained by non-operating income streams. Interest on deposits contributed ₹108.90 lakh, while gains on changes in the fair value of mutual funds added ₹63.93 lakh. These figures contrast with total expenses of ₹59.78 lakh, which included legal and professional expenses of ₹34.07 lakh and other expenses of ₹24.52 lakh.

Earnings per share (EPS) were reported at ₹0.23, compared to ₹0.22 in the previous year’s quarter. The tax expense for the period was ₹21.53 lakh, comprising current tax of ₹12.39 lakh and deferred tax of ₹9.14 lakh.

What the Numbers Show

A clear divergence exists between the company’s operational status and its financial health. With zero revenue from operations and minimal operational costs (cost of material consumed was only ₹2.36 lakh), the business model currently functions primarily as an investment holding entity. The fact that other income (interest and MF gains) constitutes nearly 100% of total income highlights a complete dependency on capital markets performance rather than industrial output. This structure allows the company to remain profitable despite having no active manufacturing or sales pipeline, as evidenced by the consistent nil operating revenue over the past three quarters.

Auditor Review

The financial results were subjected to a limited review by Sanmarks & Associates, Chartered Accountants. Partner S K Bansal issued the review report on August 13, 2026, stating that nothing came to their attention to cause them to believe the statement did not disclose the information required under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company operates under the "Real Estate" segment, which is considered the only reportable segment by management in line with Ind AS 108. Paid-up equity share capital remained unchanged at ₹390.00 lakh.

Swadeshi Polytex Limited reported a Profit After Tax (PAT) of ₹417.57 lakhs for the financial year 2025-26, a significant increase from ₹227.59 lakhs in the previous year. The improved performance was driven by efficient resource management and income from existing operations and investments. The company disclosed this during its 56th Annual General Meeting held on July 9, 2026, via video conferencing. Shareholders approved all ordinary resolutions, including the adoption of audited financial statements and the re-appointment of directors.

Financial Performance

The company's financial results for FY26 showed strong growth compared to the prior year. The Chairman highlighted the details of the operational performance and financial results, which were outlined in the Annual Report.

Meeting Proceedings

The meeting was convened through Video Conferencing or Other Audio-Visual Means in compliance with Ministry of Corporate Affairs and SEBI circulars. Ms. Anuradha Sharma, Company Secretary & Compliance Officer, confirmed the requisite quorum and declared the meeting duly convened. As the Chairman and Vice-Chairman were absent, the Directors present elected Mr. Atul Seksaria, Independent Director, to act as Chairman.

Statutory Auditors M/s Sanmark & Associates, Secretarial Auditor Mr. Baldev Singh Kashtwal, and Scrutinizer Ms. Shruti Garg were present via video conferencing. The Chairman noted a minor observation in the Statutory Auditor's Report regarding the audit trail feature in Tally Prime EL software, which was addressed in the Board's Report. The Secretarial Auditor's observation regarding 5,000 equity shares, representing 0.04% of the promoter's holding, was also explained, with over 99.96% of promoter shares already dematerialized.

Resolutions Passed

All ordinary resolutions listed in the notice were passed with the requisite majority. The resolutions included the adoption of audited financial statements for the year ended March 31, 2026, and the re-appointment of Mr. Gaurav Swarup and Mr. Ashutosh Gupta as directors liable to retire by rotation. Remote e-voting was conducted from July 6 to July 8, 2026, and results were announced within 48 hours of the meeting's conclusion.