NewsEarningsCosmo Ferrites Reports Profit Turnaround, Approves Rs 2 Crore Preference Share RedemptionCosmo Ferrites Reports Profit Turnaround, Approves Rs 2 Crore Preference Share Redemption
Cosmo Ferrites Limited announced a turnaround in its Q1 FY2026 results, reporting a profit of Rs 5.00 lakhs compared to a loss of Rs 169.00 lakhs in Q1 FY2025. Revenue from operations increased by 20.3% to Rs 2,692.00 lakhs. The company's Board approved the redemption of 200,000 Non-Convertible 10% Cumulative Redeemable Preference Shares worth Rs 2 crores, scheduled for August 01, 2025. Despite the improved quarterly performance, the company faces ongoing challenges as evidenced by losses in the previous quarter and the financial year ended March 31, 2025.
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Cosmo Ferrites Limited , a recognized export house by the Government of India, has announced its unaudited financial results for the quarter ended June 30, 2025, revealing a significant turnaround in its financial performance.
Financial Highlights
The company reported a profit of Rs 5.00 lakhs for the quarter, marking a substantial improvement from the loss of Rs 169.00 lakhs in the same quarter of the previous year. This positive shift demonstrates the company's efforts in enhancing its operational efficiency and financial management.
Revenue from operations saw a notable increase, rising to Rs 2,692.00 lakhs from Rs 2,237.00 lakhs year-over-year, indicating a growth of approximately 20.3%. The total revenue, including other income, stood at Rs 2,759.00 lakhs for the quarter.
Key Financial Metrics
| Particulars (Rs in lakhs) | Q1 FY2026 | Q1 FY2025 | Q4 FY2025 |
|---|---|---|---|
| Revenue from Operations | 2,692.00 | 2,237.00 | 1,948.00 |
| Total Revenue | 2,759.00 | 2,263.00 | 1,999.00 |
| Total Expenses | 2,751.00 | 2,488.00 | 2,205.00 |
| Profit/(Loss) Before Tax | 8.00 | (225.00) | (206.00) |
| Profit/(Loss) After Tax | 5.00 | (169.00) | (155.00) |
| EPS (Basic & Diluted) | 0.04 | (1.41) | (1.29) |
Operational Performance
The company's cost of materials consumed increased to Rs 909.00 lakhs, up from Rs 761.00 lakhs in the same quarter last year. Employee benefits expense saw a slight decrease to Rs 586.00 lakhs from Rs 621.00 lakhs year-over-year. Other expenses rose to Rs 853.00 lakhs from Rs 780.00 lakhs in the corresponding quarter of the previous year.
Preference Share Redemption
In a significant move, the Board of Directors has approved the redemption of 200,000 Non-Convertible 10% Cumulative Redeemable Preference Shares. These shares, with a face value of Rs 100 each, amount to a total of Rs 2 crores. The redemption is scheduled for August 01, 2025, and will be executed at par along with pro-rata dividend from the company's profits.
Management Commentary
Ambrish Jaipuria, Managing Director of Cosmo Ferrites Limited, stated, "We are pleased with the company's performance this quarter, which reflects our ongoing efforts to improve operational efficiency and financial stability. The approval for preference share redemption underscores our commitment to optimizing our capital structure and enhancing shareholder value."
Looking Ahead
While the company has shown improvement in its quarterly performance, it continues to face challenges, as evidenced by the loss reported in the previous quarter and the overall loss for the financial year ended March 31, 2025. The management remains focused on sustaining this positive momentum and further strengthening the company's financial position in the coming quarters.
Investors and stakeholders will be keenly watching how Cosmo Ferrites builds on this quarter's performance and navigates the evolving market conditions in the ferrite industry.
Historical Stock Returns for Cosmo Ferrites
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.12% | +4.69% | -7.51% | -12.32% | -18.39% | +3,662.22% |
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