HP Cotton Textile Mills Limited announced its unaudited consolidated and standalone financial results for the quarter ended December 31, 2025, which were approved by the Board of Directors on February 11, 2026. The textile manufacturing company demonstrated improved financial performance across key metrics during the third quarter of fiscal year 2026.

Financial Performance Overview

The company's consolidated financial results showed steady growth in both revenue and profitability. Revenue from operations reached ₹3,358 lacs in Q3FY26, representing an increase from ₹3,265 lacs in the corresponding quarter of the previous year. Total income, including other income of ₹54 lacs, stood at ₹3,412 lacs for the quarter.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company recorded consolidated revenue from operations of ₹10,394 lacs, compared to ₹9,170 lacs in the same period of the previous year, marking a growth of 13.35%. The nine-month profit reached ₹228 lacs, substantially higher than ₹160 lacs achieved in the corresponding period of the previous year.

Expense Structure and Cost Management

The company's total expenses for Q3FY26 amounted to ₹3,321 lacs, compared to ₹3,251 lacs in Q3FY25. Key expense components included cost of materials consumed at ₹1,363 lacs, employee benefits expense of ₹869 lacs, and power and fuel costs of ₹445 lacs. The company benefited from a favorable change in inventories of finished goods and work-in-progress, which resulted in a credit of ₹90 lacs during the quarter.

Impact of Labour Code Implementation

The company disclosed the financial impact of new Labour Codes notified by the Government of India on November 21, 2025. These codes consolidate twenty-nine existing labour laws and introduce changes including uniform wage definitions and enhanced leave benefits. The implementation resulted in an increase in gratuity and leave liability by ₹29.25 lacs, which was recognized in the Statement of Profit and Loss for the quarter and nine months ended December 31, 2025.

Business Segment and Operations

HP Cotton Textile Mills operates in a single business segment of textile manufacturing, specifically spinning operations. The company's registered office and manufacturing facility are located at 15th Km Stone, Delhi Road, VPO Mayar, Hisar, Haryana. The corporate office is situated in New Delhi. The consolidated results include the parent company and its subsidiary, HP MMF Textiles Limited, which reported nil revenue and a net loss of ₹0.33 lacs for the quarter.

Regulatory Compliance and Audit

The financial results were prepared in accordance with Indian Accounting Standard 34 (Ind AS 34) for interim financial reporting and comply with SEBI Listing Regulations. D. Kothary & Co., Chartered Accountants, conducted a limited review of both consolidated and standalone financial results. The audit committee reviewed the results before Board approval, ensuring adherence to regulatory requirements and accounting standards.

HP Cotton Textile Mills Limited, a prominent player in the Indian textile industry, has released its unaudited financial results for the second quarter and half-year ended September 30, 2025. The company's performance shows signs of improvement, with a narrowed loss compared to the previous quarter.

Financial Highlights

Quarterly Performance

For the quarter ended September 30, 2025, HP Cotton Textile Mills reported a net loss of ₹78.00 lakhs, showing an improvement from the ₹84.00 lakhs loss in the previous quarter. The company's revenue from operations stood at ₹3,445.00 lakhs, compared to ₹3,591.00 lakhs in the first quarter of FY2026.

Half-Yearly Results

The half-yearly results show a different trend. For the six-month period ended September 30, 2025, the company recorded a loss of ₹260.00 lakhs, which is higher than the ₹204.00 lakhs loss reported in the corresponding period last year. However, the revenue from operations showed significant growth, reaching ₹7,036.00 lakhs compared to ₹5,905.00 lakhs in H1 FY2025.

Balance Sheet Position

As of September 30, 2025, HP Cotton Textile Mills' total assets stood at ₹9,707.00 lakhs.

Management Approval

The financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors in their meeting held on November 10, 2025. The meeting commenced at 3:30 PM and concluded at 3:52 PM.

Auditor's Review

The statutory auditors have carried out a limited review of the unaudited financial results, as per the regulatory requirements. The review report states that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with the applicable accounting standards and other recognized accounting practices and policies.

While the company's half-yearly loss has increased compared to the previous year, the narrowing of quarterly losses may indicate some positive momentum. The company's performance in the coming quarters will be crucial to assess if this trend of improvement continues.