Kamadgiri Fashion Limited has reported its unaudited financial results for the third quarter ended December 31, 2025, revealing a notable decline in both revenue and profitability compared to the corresponding period last year. The textile company's performance reflects challenging market conditions during the quarter.

Board Meeting and Regulatory Compliance

The company's Board of Directors convened on February 4, 2026, to approve the quarterly financial results under Regulation 33 of SEBI Listing Regulations. The meeting commenced at 11:30 AM and concluded at 1:00 PM, with the unaudited financial results being reviewed by the Audit Committee and statutory auditors DMKH & Co., Chartered Accountants.

Financial Performance Overview

The company's financial metrics for Q3FY26 showed mixed results across key parameters:

Quarterly Revenue and Profitability Analysis

Revenue from operations declined significantly to ₹3,501.74 lakhs in Q3FY26 from ₹4,463.99 lakhs in the same quarter last year. Other income remained minimal at ₹3.58 lakhs compared to ₹2.47 lakhs in the previous year. The company's profit before tax stood at ₹99.82 lakhs, down from ₹136.99 lakhs in Q3FY25.

Net profit for the quarter was ₹66.48 lakhs, representing a substantial decrease from ₹100.31 lakhs achieved in the corresponding quarter of FY25. This decline directly impacted the earnings per share, which dropped to ₹1.13 from ₹1.71 in the previous year.

Nine-Month Performance Comparison

The nine-month period ended December 31, 2025, also reflected similar trends:

Cost Structure and Operational Expenses

The company's expense management showed some positive developments despite revenue challenges. Total expenses for Q3FY26 were ₹3,405.50 lakhs compared to ₹4,329.47 lakhs in Q3FY25. Key expense components included:

• Cost of materials consumed: ₹2,016.00 lakhs (Q3FY26) vs ₹2,100.58 lakhs (Q3FY25)
• Employee benefits expense: ₹349.78 lakhs vs ₹263.88 lakhs
• Job charges: ₹845.42 lakhs vs ₹878.17 lakhs
• Finance costs: ₹56.74 lakhs vs ₹63.32 lakhs

Impact of New Labour Codes

A significant development affecting the company's financials was the implementation of new labour codes by the Government of India, effective November 21, 2025. Kamadgiri Fashion recognized incremental estimated obligations of ₹49.42 lakhs for employees' past services under employee benefits expense. This adjustment was made based on actuarial valuation and best estimates in accordance with Ind AS 19 guidelines.

Corporate Governance and Compliance

The financial results were reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meeting held on February 4, 2026. The results were also reviewed by statutory auditors DMKH & Co., Chartered Accountants, who provided their limited review report. The company maintains its focus solely on the textile business with no separate reportable segments as per Ind AS 108.

Kamadgiri Fashion Limited , a prominent player in the textile industry, has released its unaudited financial results for the second quarter and half-year ended September 30, 2025. The company's Board of Directors approved these results in a meeting held on November 4, 2025.

Financial Performance Highlights

The company's financial performance for Q2 FY2026 shows a decline in both revenue and profit compared to the previous quarter and the same period last year. Here's a detailed breakdown of the key financial metrics:

Key Observations

1. Revenue Decline: Kamadgiri Fashion's income from operations for Q2 FY2026 stood at ₹41.90 crores, marking a decrease of 4.97% compared to both the previous quarter and the same quarter last year, which reported ₹44.09 crores.

2. Profit Reduction: Net profit for Q2 FY2026 was ₹11.00 lakhs, showing a significant drop of 45.79% from ₹20.29 lakhs in Q1 FY2026 and a 55.96% decrease from ₹24.98 lakhs in Q2 FY2025.

3. Half-Year Performance: For the first half of FY2026, the company reported a total income from operations of ₹86.00 crores, down by 5.60% compared to ₹91.10 crores in H1 FY2025. The net profit for H1 FY2026 was ₹31.29 lakhs, a 37.28% decrease from ₹49.89 lakhs in H1 FY2025.

4. Earnings Per Share: The company's EPS for Q2 FY2026 was ₹0.22, a decrease from ₹0.40 in the previous quarter and ₹0.49 in Q2 FY2025. For H1 FY2026, the EPS stood at ₹0.62, down from ₹0.98 in H1 FY2025.

Business Focus

Kamadgiri Fashion Limited continues to operate exclusively in the textile business, with no separate reportable segments. This focus allows the company to concentrate its efforts on its core competencies in the textile industry.

Conclusion

The financial results indicate that Kamadgiri Fashion Limited is facing challenges, with declines in both revenue and profitability compared to previous periods. The company's performance in the coming quarters will be crucial as it navigates the current market conditions in the textile sector.