Yajur Fibres reported a 35% year-on-year decline in consolidated net profit to ₹7.52 crore for the financial year ended March 31, 2026, as revenue contracted by 11% to ₹101.04 crore. The decline was attributed to geopolitical tensions and global market slowdowns.

The Kolkata-based bast fibre manufacturer successfully completed its Initial Public Offering (IPO) in January 2026, raising gross proceeds of ₹120.41 crore. The funds are being deployed for capacity expansion at its existing Howrah unit and a greenfield project in Madhya Pradesh.

Financial Performance

Consolidated revenue from operations stood at ₹10,104.33 lakhs, down from ₹14,080.76 lakhs in the previous year. Earnings before interest, tax, depreciation, and amortization (EBITDA) fell to ₹10.18 crore from ₹15.14 crore. Net profit after tax (PAT) decreased to ₹7.52 crore compared to ₹11.64 crore in FY25.

Strategic Expansion

The company is advancing its forward integration strategy through subsidiary Yashoda Linen Yarn Limited. Civil construction for a premium wet-spun linen yarn facility in Ujjain is underway, with commercial operations targeted for April 2027. Yajur Fibres increased its stake in the subsidiary to approximately 98.5% using IPO proceeds.

What the Numbers Show

While top-line growth stalled, the company’s balance sheet strengthened significantly post-IPO. Cash and bank balances surged to ₹56.89 crore from ₹1.97 crore in the previous year. This liquidity position supports the ongoing capital expenditure for the new yarn plant and working capital requirements, mitigating near-term debt pressures despite the operational slowdown.

Yajur Fibres Limited reported a 35.4% decline in net profit to ₹75.24 crore for the financial year ended March 31, 2026, down from ₹116.43 crore in the previous year. Revenue from operations decreased by 11.3% to ₹1,009.72 crore compared to ₹1,138.59 crore in FY25. The operational and financial performance was impacted by adverse global market conditions, supply chain disruptions, and weak demand in the textile industry. The company's board approved the audited standalone and consolidated financial results at a meeting held on May 25, 2026.

The statutory auditors, M/s. R Kothari & Co LLP, issued an unmodified opinion on the financial results. The company recognized a gratuity liability of ₹1.27 crore in the current year following the implementation of the New Labour Codes effective from November 21, 2025.

Financial Performance

Total income for the year stood at ₹1,022.85 crore, a decrease from ₹1,148.65 crore in the previous year. Total expenses reduced to ₹920.99 crore from ₹997.28 crore. The basic earnings per share (EPS) for the year dropped to ₹4.36 from ₹7.39 in the prior year.

Capital and IPO Utilization

The paid-up equity share capital increased to ₹226.83 crore from ₹157.63 crore. The company raised ₹120.41 crore through its Initial Public Offering (IPO). As of March 31, 2026, ₹64.23 crore had been utilized, leaving ₹56.17 crore unutilized. The unutilized amount is invested in fixed deposits (₹56.10 crore) and held in current bank accounts (₹0.07 crore).

Consolidated Results

On a consolidated basis, the company reported a net profit of ₹75.21 crore for FY26, down from ₹116.76 crore in the previous year. Consolidated revenue from operations stood at ₹1,010.43 crore. The auditors noted that the financial results of subsidiary Yashoda Linen Yarn Limited were audited by another auditor. The consolidated operating margin was recorded at 15%. The company reduced consolidated borrowings by ₹20 crore, a 30% decline, while total assets grew by 64% to approximately ₹232 crore.

Management Commentary and Outlook

Management attributed the performance to US-centric trade tariffs since November 2025 and geopolitical tensions disrupting supply chains since February 2026. To prioritize the commissioning of the high-tech Ujjain manufacturing unit, the Board ceased all trading operations at subsidiary Yashoda Linen Yarn Limited, resulting in a planned reduction of approximately ₹27 crore in trading revenue.

The state-of-the-art facility at Vikram Udyogpuri (DMIC), Ujjain, is scheduled for completion by FY2027. Additionally, the installation of additional production capacity at the existing facility in Uluberia, West Bengal, is progressing and expected to be completed by December 2026, adding up to 4 tons per day of capacity. Management expects a recovery driven by macro stabilization, production ramp-up, and sustained domestic demand.