GTN Textiles Limited Reports Q3FY26 Results with Trading Revenue of ₹338 Lacs
GTN Textiles Limited reported Q3FY26 revenue of ₹338 lacs from cotton yarn trading operations, compared to ₹207 lacs in the previous quarter. The company recorded a net loss of ₹42 lacs from continuing operations. For nine months FY26, total revenue reached ₹674 lacs, reflecting the company's successful transition from manufacturing to trading business model following asset disposal and debt repayment.
*this image is generated using AI for illustrative purposes only.
GTN Textiles Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showcasing the company's transition to cotton yarn trading operations. The Board of Directors approved these results at their meeting held on February 7, 2026.
Financial Performance Overview
The company's financial performance for Q3FY26 reflects its new business model focused on cotton yarn trading:
| Metric | Q3FY26 | Q2FY26 | Nine Months FY26 |
|---|---|---|---|
| Revenue from Operations | ₹338 lacs | ₹207 lacs | ₹674 lacs |
| Net Loss (Continuing Operations) | ₹42 lacs | ₹39 lacs | ₹94 lacs |
| Basic EPS (Continuing Operations) | (0.36) | (0.34) | (0.80) |
Business Transformation and Trading Operations
GTN Textiles has successfully transitioned from manufacturing to trading in cotton yarn following the discontinuation of its cotton yarn manufacturing operations. The company has leveraged its existing client relationships to establish this new business model. Post discontinuation of manufacturing, the company sold its assets and utilized the proceeds to repay bank dues and other major liabilities.
Expense Structure and Operations
The company's expense breakdown for Q3FY26 demonstrates its trading-focused operations:
| Expense Category | Q3FY26 | Nine Months FY26 |
|---|---|---|
| Purchase of Stock in Trade | ₹336 lacs | ₹664 lacs |
| Employee Benefits Expense | ₹18 lacs | ₹44 lacs |
| Finance Cost | ₹7 lacs | ₹14 lacs |
| Other Expenses | ₹40 lacs | ₹71 lacs |
| Total Expenses | ₹380 lacs | ₹768 lacs |
The company recorded a positive change in inventories of ₹21 lacs during Q3FY26, indicating inventory build-up to support trading operations.
Asset Disposal and Land Sale
As part of its restructuring, GTN Textiles has been disposing of its landed property. The company entered into a revised MOU with a corporate buyer for the sale of 25.76 acres of landed property. Of this, 25.08 acres have been sold and consideration received. The remaining 0.68 acres with a book value of ₹2.05 crores is pending sale registration, which will be accounted for upon receipt of sale consideration and execution of the sale agreement.
Going Concern and Future Outlook
Despite reporting losses, the company has prepared its financial results on a going concern basis, citing improved demand conditions in the Indian textiles industry. The management expressed confidence in stepping up operations in the coming months to enhance the company's prospects. The company operates in a single segment - the yarn segment - and has no separate reportable segments as per Ind AS 108.
Corporate Governance and Compliance
The financial results were reviewed and recommended by the Audit Committee and approved by the Board of Directors. The company's statutory auditors, L.U. Krishnan & Co., Chartered Accountants, Chennai, conducted a limited review of these results pursuant to Regulation 33 of SEBI (LODR) 2015. The company maintains its paid-up equity share capital at ₹1164 lacs with a face value of ₹10 per share.
Historical Stock Returns for GTN Textiles
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.46% | +2.10% | +4.55% | -2.35% | -20.69% | +44.46% |
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