GTN Textiles Reports Q2 FY26 Loss, Transitions to Cotton Yarn Trading
GTN Textiles Limited, transitioning from yarn manufacturing to cotton yarn trading, reported a net loss of Rs 13.00 lakhs for Q2 FY26. Revenue increased to Rs 207.00 lakhs from Rs 129.00 lakhs in Q1, but expenses rose to Rs 246.00 lakhs. The company completed a Rs 87.14 crore land sale and plans to expand its cotton yarn trading operations. Management remains confident, preparing results on a going concern basis.
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GTN Textiles Limited , a company transitioning from yarn manufacturing to cotton yarn trading, has announced its unaudited financial results for the second quarter and half-year ended September 30, 2025. The company reported a net loss after tax of Rs 13.00 lakhs from continuing operations for the quarter, indicating ongoing challenges in its new business model.
Financial Performance
The company's financial results for Q2 FY26 paint a picture of a business in transition:
| Particulars (Rs. in lakhs) | Q2 FY26 | Q1 FY26 | H1 FY26 |
|---|---|---|---|
| Revenue from Operations | 207.00 | 129.00 | 336.00 |
| Total Expenses | 246.00 | 142.00 | 388.00 |
| Profit/(Loss) before Tax | (39.00) | (13.00) | (52.00) |
| Net Profit/(Loss) after Tax | (39.00) | (13.00) | (52.00) |
GTN Textiles' revenue from operations in Q2 FY26 stood at Rs 207.00 lakhs, showing an increase from Rs 129.00 lakhs in the previous quarter. However, total expenses also rose to Rs 246.00 lakhs, resulting in a loss before tax of Rs 39.00 lakhs for the quarter.
Business Transition
GTN Textiles has undergone a significant transformation in its business model. The company has:
- Transitioned to trading in cotton yarn after repaying bank dues and major liabilities from asset sale proceeds.
- Received full consideration of Rs 87.14 crores from the sale of 25.76 acres of landed property under a revised agreement with a corporate buyer.
- Pending sale deed registration for 0.68 acres (book value Rs 2.05 crores) of land.
Future Outlook
The management has expressed its intention to continue and expand its cotton yarn trading operations. This strategic shift aims to improve the company's prospects in the coming months. The financial results have been prepared on a going concern basis, reflecting the management's confidence in the new business model.
Corporate Actions
The Board of Directors approved these unaudited financial results at their meeting held on November 7, 2025. The results were also reviewed by the company's statutory auditors, L.U. Krishnan & Co., Chartered Accountants.
Investor Considerations
While GTN Textiles is navigating through a significant business transition, investors should consider the following:
- The company's ability to grow its cotton yarn trading business.
- The impact of the asset sale on the company's balance sheet and future operations.
- The timeline for achieving profitability in the new business model.
As GTN Textiles adapts to its new focus on cotton yarn trading, stakeholders will be closely watching how effectively the company manages this transition and returns to profitability in the coming quarters.
Historical Stock Returns for GTN Textiles
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.70% | -3.45% | +6.26% | +15.13% | -12.29% | +98.66% |
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