E-Land Apparel Reports Widening Losses in Q2 FY2026, Raises Going Concern Issues
E-Land Apparel Limited reported a net loss of Rs 1,943.51 lakhs for Q2 FY2026, significantly higher than the Rs 506.85 lakhs loss in the previous quarter. Revenue from operations stood at Rs 3,374.68 lakhs. The company's accumulated losses have eroded its net worth, with total liabilities at Rs 79,767.91 lakhs against total assets of Rs 28,839.67 lakhs. Auditors have raised concerns about the company's ability to continue as a going concern. Despite this, management maintains a positive outlook based on industry prospects and support from the holding company.
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E-Land Apparel Limited , a player in the Indian garment industry, has reported a significant increase in losses for the quarter ended September 30, 2025, raising concerns about its financial stability. The company's unaudited financial results, approved by the Board of Directors on November 11, 2025, reveal a challenging fiscal landscape.
Financial Performance
E-Land Apparel reported a net loss of Rs 1,943.51 lakhs for Q2 FY2026, a substantial increase from the Rs 506.85 lakhs loss in the previous quarter. This widening loss comes despite a revenue from operations of Rs 3,374.68 lakhs for the quarter.
Here's a breakdown of the key financial metrics:
| Particulars (in Lakhs) | Q2 FY2026 (Sep 30) | Q1 FY2026 (Jun 30) | Q2 FY2025 (Sep 30) |
|---|---|---|---|
| Revenue from Operations | 3,374.68 | 7,270.75 | 4,439.22 |
| Other Income | 237.01 | 212.81 | 206.14 |
| Total Income | 3,611.70 | 7,483.56 | 4,645.36 |
| Total Expenses | 5,555.21 | 7,990.40 | 4,678.49 |
| Net Profit/(Loss) | (1,943.51) | (506.85) | (33.13) |
Going Concern Issues
The company's auditors have highlighted that accumulated losses have eroded E-Land Apparel's net worth, indicating material uncertainty about its ability to continue as a going concern. As of September 30, 2025, the company's balance sheet shows:
- Total assets: Rs 28,839.67 lakhs
- Total liabilities: Rs 79,767.91 lakhs
- Negative equity: Rs (50,928.24) lakhs
Despite these concerns, the company maintains it will continue operations based on a positive outlook for the garment industry and confirmed financial support from its holding company.
Management's Stance
E-Land Apparel's management has prepared the financial results under the going concern assumption. They cite a positive outlook for the garment industry and financial support from the holding company as reasons for their continued operations.
Cash Flow and Liquidity
The cash flow statement reveals some concerning trends:
- Net cash used in operating activities: Rs (189.71) lakhs
- Net cash used in investing activities: Rs (2,148.99) lakhs
- Net cash generated from financing activities: Rs 2,436.90 lakhs
The company's cash and cash equivalents stood at Rs 403.73 lakhs at the end of the period, down from Rs 2,230.47 lakhs in the previous comparable period.
Conclusion
E-Land Apparel's financial results for Q2 FY2026 paint a picture of a company facing significant challenges. The widening losses, eroded net worth, and going concern issues highlighted by auditors suggest a critical juncture for the company. While management remains optimistic about the future of the garment industry and cites support from its holding company, investors and stakeholders may need to closely monitor the company's performance and turnaround efforts in the coming quarters.
Historical Stock Returns for E Land Apparel
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.84% | -23.60% | -25.68% | -18.26% | -2.68% | +143.70% |
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