Mohit Industries Limited , a textile company, has reported a net loss for the quarter ended September 30, 2025, and announced plans for a rights issue to raise capital. The company's board has also approved the formation of a Rights Issue Committee to oversee the process.

Financial Performance

For the quarter ended September 30, 2025, Mohit Industries posted a net loss of Rs 15.09 lakhs, compared to a net loss of Rs 102.39 lakhs reported in the same period last year. The company's financial results reveal the following key points:

Despite the increase in revenue from operations, the company's profitability remains challenged. The management attributes this to various factors, including increased costs and market conditions.

Rights Issue Announcement

In a move to strengthen its financial position, Mohit Industries' board has approved a rights issue to raise up to Rs 25 crores from existing shareholders. Key details of the proposed rights issue include:

• Type of Securities: Equity Shares
• Issue Type: Rights Issue to eligible existing shareholders
• Maximum Amount: Not exceeding Rs. 25 Crores (Rupees Twenty Five Crores)

The company has constituted a Rights Issue Committee to determine the terms and conditions of the issue, including the price, ratio, and timing.

Management Commentary

Narayan Saboo, Managing Director & CFO of Mohit Industries Limited, commented on the company's performance and future plans: "While we face short-term challenges reflected in our quarterly results, we are taking proactive steps to improve our financial position. The proposed rights issue is aimed at strengthening our capital base and supporting our growth initiatives."

Operational Highlights

The company's management highlighted several operational aspects in their financial report:

1. Increased reliance on solar power generation to reduce energy costs.
2. Strategic cost-reduction initiatives influencing profitability.
3. Recent changes in BIS guidelines allowing for more competitive raw material imports.

Looking Ahead

Mohit Industries expects improvements in the coming months, with management citing the following factors:

• Anticipated increase in solar power output, potentially leading to further cost reductions.
• Potential for reduced raw material costs due to changes in import regulations.
• Ongoing efforts to enhance operational efficiency and profitability.

Investors and stakeholders will be closely watching the developments related to the rights issue and the company's efforts to improve its financial performance in the coming quarters.

Note: All financial figures are based on the unaudited consolidated financial results for the quarter ended September 30, 2025.

Mohit Industries Limited, a textile segment operator, has submitted a revised Limited Review Report for its Q1 FY2026 financial results, following a format-related request from BSE Limited. The company's performance shows a mixed picture with increased revenue but widened losses.

Financial Highlights

Standalone Performance

• Net loss increased to Rs 43.22 lacs, compared to Rs 40.32 lacs in Q1 FY2025
• Revenue from operations surged to Rs 3,224.49 lacs, up from Rs 2,117.56 lacs year-over-year

Consolidated Performance

• Net loss stood at Rs 42.83 lacs, versus Rs 40.89 lacs in the previous year's quarter

Key Financial Data

Auditor's Qualification

The company's auditor, Rajendra Sharma & Associates, noted a qualification regarding the accounting treatment of post-employment benefits. The report states that Mohit Industries has not provided for these benefits on an accrual basis as required by Ind AS-19 on Employee Benefits. Instead, the company accounts for these benefits when they become due for payment.

Management's Response

The board of Mohit Industries defended its approach, stating that the provision for post-employment benefits is determined based on actuarial valuation methods prescribed in Ind-AS. They have decided to pay these benefits as and when they become due, considering the amount to be negligible and unlikely to significantly impact the company's financial position.

Associate Companies

Mohit Industries has two associate companies:

1. Mohit Overseas Limited (49.25% stake)
2. Mohit Yams Limited (49.48% stake)

Additional Notes

• The company operates primarily in the textile segment.
• The revised report was submitted following a format-related request from BSE Limited on September 17, 2025.
• All other financial data remains unchanged from the previously submitted results dated August 12, 2025.

Mohit Industries Limited continues to face challenges in profitability despite revenue growth. The company's management will need to address the widening losses while maintaining its growth trajectory in the coming quarters.