Winsome Yarns Limited (BSE: WINSOME) reported a net loss of ₹3.32 crore for the quarter ended June 30, 2026 (Q1FY27), compared to a loss of ₹3.28 crore in the corresponding period last year. The textile company, currently undergoing Corporate Insolvency Resolution Process (CIRP), recorded zero revenue from operations during the quarter.

The Board of Directors approved the unaudited standalone financial results on September 23, 2026. The statutory auditors, Dhana & Associates, issued a qualified conclusion on the financials, citing accumulated losses exceeding net worth and negative cash flows. The company’s affairs are managed by a Monitoring Committee following the National Company Law Tribunal (NCLT) approval of a resolution plan submitted by Mohini Health & Hygiene Limited on April 16, 2026.

Financial Performance Overview

The company’s total revenue stood at ₹37 lakh, driven entirely by other income, as income from operations was nil. This contrasts with ₹48 lakh in total revenue for Q1FY26, which included ₹18 lakh from operations. Total expenses rose to ₹3.69 crore in Q1FY27, up from ₹3.77 crore in the prior year quarter, primarily due to depreciation and amortization costs.

Insolvency and Resolution Status

The NCLT Chandigarh Bench admitted Winsome Yarns into CIRP on December 22, 2023, following an application by Edelweiss Asset Reconstruction Company Limited. The approved resolution plan, valued at ₹162.90 crore, provides for the infusion of funds for revival and operations. Implementation is currently underway under the supervision of the Monitoring Committee.

The auditors noted that the financial results are prepared on a going concern basis considering the approved resolution plan. However, they highlighted that the accounts are understated due to pending reconciliations of receivables, payables, and bank balances. The company has not provided for interest and penalty on borrowings, pending final settlement under the resolution plan.

Operational and Legal Developments

The company reported a theft of approximately ₹59.20 lakh from a transformer at its spinning mill complex in Dera Bassi, Punjab. An FIR has been registered, and an insurance claim has been filed. Additionally, the registered office was vacated by the Chandigarh Administration on December 30, 2024, and the company is currently operating from its knitting unit in Mohali.

What the Numbers Show

A critical divergence exists between the company’s operational stagnation and its fixed cost burden. With zero revenue from operations in Q1FY27, the entire loss of ₹3.32 crore is attributable to fixed costs, primarily depreciation and amortization (₹2.42 crore) and other expenses (₹1.10 crore). The slight increase in net loss YoY (from ₹3.28 crore to ₹3.32 crore) despite lower total expenses indicates that the reduction in other operating costs was offset by the re-emergence of finance costs (₹7 lakh) and higher employee benefits, signaling that the company remains structurally unprofitable without immediate operational revival funded by the resolution plan.

Winsome Yarns Limited will keep its register of members and share transfer books closed from September 22, 2026 to September 28, 2026. The closure facilitates the determination of shareholders eligible for the company’s 36th Annual General Meeting (AGM).

The intimation was issued on September 4, 2026, pursuant to Section 91 of the Companies Act, 2013 and Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Dates

Shareholders registered in the company’s records as of the end of the closure period will be eligible to attend and vote at the AGM. The notice was signed by Riya Pawar, Company Secretary & Compliance Officer.