Loyal Textile Mills Narrows Losses in Q2 FY2025 Amid Business Realignment
Loyal Textile Mills Limited reported a significant reduction in standalone net loss for Q2 FY2025, narrowing from ₹25.14 crore to ₹9.66 crore, a 61.57% improvement. Revenue from operations decreased by 21.09% to ₹106.54 crore. The company recorded exceptional income of ₹10.72 crore from asset sales and made a ₹10.22 crore provision for export inventory. Business realignment efforts, including exiting low-margin operations and focusing on high-value segments, have led to positive EBITDA. Management expressed confidence in achieving profitability in the coming year. Consolidated performance showed a net loss of ₹11.34 crore, down 33.33% from the previous quarter.
*this image is generated using AI for illustrative purposes only.
Loyal Textile Mills Limited , a prominent player in the Indian textile industry, has reported a significant reduction in its standalone net loss for the quarter ended September 30, 2025. The company's strategic initiatives to streamline operations and focus on high-value segments have begun to show positive results, despite ongoing challenges in the export market.
Financial Performance
The company's standalone financial results for Q2 FY2025 reveal:
| Particulars | Q2 FY2025 | Q1 FY2025 | Change |
|---|---|---|---|
| Net Loss | ₹9.66 | ₹25.14 | ↓61.57% |
| Revenue from Operations | ₹106.54 | ₹135.02 | ↓21.09% |
While the revenue from operations decreased by 21.09% compared to the previous quarter, Loyal Textile Mills managed to significantly narrow its losses, indicating improved operational efficiency.
Exceptional Items and Strategic Moves
The quarter saw some notable exceptional items:
Sale of Assets: The company recorded an exceptional income of ₹10.72 crore from the sale of windmills and plant machinery, aligning with its asset monetization strategy.
Export Inventory Provision: A provision of ₹10.22 crore was made for export inventory affected by recent tariff developments on textile imports from India. The management is actively exploring alternate export markets and pricing strategies to mitigate this impact.
Business Realignment and Future Outlook
Loyal Textile Mills has made significant progress in its business realignment plan:
- Exiting low-margin operations
- Consolidating production to enhance efficiency
- Focusing on high-value technical textiles and protective garments
These efforts have led to improved performance, with EBITDA turning positive during the quarter. The company continues to advance its asset monetization plan to strengthen liquidity and support the ongoing turnaround.
Management Commentary
The management expressed confidence in achieving profitability in the coming year, citing:
- Implemented measures showing positive results
- Further planned actions
- A strong order book
Consolidated Performance
On a consolidated basis, which includes the company's joint venture Gruppo P&P Loyal SPA Italy, the results show:
| Particulars | Q2 FY2025 | Q1 FY2025 | Change |
|---|---|---|---|
| Net Loss | ₹11.34 | ₹17.01 | ↓33.33% |
| Revenue from Operations | ₹106.54 | ₹135.42 | ↓21.33% |
The joint venture contributed a share of profit of ₹3.98 crore for the quarter, partially offsetting the standalone losses.
Auditor's Review
The statutory auditors, Brahmayya & Co., have conducted a limited review of the financial results. They emphasized the company's initiatives towards asset monetization and operational rationalization, noting management's confidence in achieving operational profitability in the near term.
As Loyal Textile Mills navigates through its transformation phase, the market will be closely watching the company's ability to sustain its improved performance and successfully execute its turnaround strategy in the coming quarters.
Historical Stock Returns for Loyal Textile Mills
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.45% | -7.91% | -19.02% | -23.52% | -31.30% | -77.55% |
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