Classic Filaments Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The company reported a net loss of ₹1.43 lakhs for the third quarter of FY26, showing an improvement from the ₹2.29 lakhs loss recorded in the corresponding quarter of the previous year.

Financial Performance Overview

The company's financial performance for Q3 FY26 reflects continued operational challenges, with zero revenue from operations recorded during the quarter. This pattern remained consistent across all reported periods, indicating the company's current non-operational status.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, Classic Filaments reported a net loss of ₹9.14 lakhs compared to ₹8.42 lakhs in the corresponding period of the previous year, representing an increase in losses of 8.55%. The company maintained zero revenue from operations throughout this period as well.

Expense Breakdown

The company's expenses during Q3 FY26 primarily consisted of employee benefits expenses of ₹0.80 lakhs and other expenses of ₹0.63 lakhs. This represents a reduction from the previous quarter's total expenses of ₹2.90 lakhs. The company reported no finance costs, depreciation, or material consumption expenses during the quarter.

Corporate Governance and Compliance

The Board of Directors approved these unaudited financial results at their meeting held on January 30, 2026, which commenced at 11:00 a.m. and concluded at 11:45 a.m. The results were prepared in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.

Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the company published its financial results in newspapers on Saturday, January 31, 2026. The publication appeared in Financial Express (Gujarati) and Financial Express (English) editions.

Lakhankiya & Dosi LLP, Chartered Accountants, conducted a limited review of the financial statements and issued an unqualified opinion. The company maintains its paid-up capital at ₹611.33 lakhs with a face value of ₹10 per equity share.

Business Segment Information

According to the company's disclosures, Classic Filaments operates as a wholesaler in textiles within a single primary business segment and geographical location. The company has adopted Indian Accounting Standards (Ind AS) since April 1, 2017, and continues to prepare its financial statements in accordance with these standards.

Classic Filaments Limited (CFL) has announced its financial results for the quarter ended September 30, 2025, revealing a net loss of ₹7.71 lakhs. This loss marks an improvement from the ₹10.96 lakhs loss reported in the same quarter of the previous year.

Financial Performance

The company reported no revenue from operations during the quarter, indicating continued challenges in its business activities. The financial results paint a picture of a company grappling with operational difficulties:

*As of the beginning of the year

The significant decrease in cash and cash equivalents from ₹70.90 lakhs at the beginning of the year to ₹3.71 lakhs is noteworthy, suggesting a substantial cash burn over the period.

Operational Challenges

The absence of revenue from operations for the quarter underscores the operational challenges faced by Classic Filaments. The company's net cash flow from operating activities stood at negative ₹8.96 lakhs, further highlighting the strain on its financial resources.

Income Tax Assessment

Adding to the company's concerns, the auditors have highlighted an ongoing income tax assessment under Section 263 of the Income Tax Act for FY 2018-19. The assessment pertains to alleged bogus purchases. However, the management of Classic Filaments maintains that the purchases are valid and expects no material impact on the current financial results.

Management Stance

Despite the challenges, the management's assertion regarding the validity of the purchases under scrutiny by tax authorities indicates their confidence in the company's financial practices. Their expectation of no material impact on current financial results suggests a belief in a favorable outcome of the tax assessment.

Investor Considerations

For investors and market watchers, these results and ongoing tax scrutiny present a complex picture:

• The reduction in net loss year-over-year may be seen as a marginal positive.
• The lack of operational revenue raises questions about the company's business model and future prospects.
• The significant decrease in cash reserves could be a concern for the company's liquidity position.
• The outcome of the income tax assessment could have implications for the company's financial standing and reputation.

As Classic Filaments navigates these challenges, stakeholders will be keenly watching for any signs of operational revival and the resolution of the tax assessment issue in the coming quarters.