Ludlow Jute & Specialities Limited has announced its unaudited financial results for the third quarter of fiscal year 2026, demonstrating strong operational performance and a significant turnaround in profitability. The Board of Directors approved these results on February 11, 2026, following review by the Audit Committee and limited review by statutory auditors J K V S & Co.

Strong Revenue Growth Drives Performance

The company delivered exceptional revenue growth during Q3FY26, with key performance metrics showing substantial improvement:

The revenue surge reflects strong operational momentum, with the company achieving its highest quarterly revenue performance. Other income remained modest at ₹43 lakhs compared to ₹9 lakhs in the previous year quarter.

Cost Management and Operational Efficiency

Total expenses for Q3FY26 stood at ₹13,172 lakhs compared to ₹5,600 lakhs in Q3FY25. The major expense components included:

• Cost of materials consumed: ₹9,316 lakhs (Q3FY25: ₹2,222 lakhs)
• Employee benefits expense: ₹2,110 lakhs (Q3FY25: ₹724 lakhs)
• Other expenses: ₹1,970 lakhs (Q3FY25: ₹914 lakhs)
• Finance costs: ₹377 lakhs (Q3FY25: ₹319 lakhs)

Notably, the company benefited from favorable inventory changes of ₹775 lakhs compared to an adverse impact of ₹1,226 lakhs in the corresponding quarter last year.

Nine-Month Performance Shows Sustained Growth

The nine-month period ended December 31, 2025, reinforced the company's strong performance trajectory:

The company achieved total comprehensive income of ₹1,601 lakhs for the nine-month period compared to a loss of ₹1,196 lakhs in the previous year, demonstrating sustained operational improvements.

Financial Position and Capital Structure

Ludlow Jute & Specialities maintains a stable capital structure with paid-up equity share capital of ₹1,080 lakhs, consisting of shares with a face value of ₹10 each. The company reported deferred tax expense of ₹80 lakhs for Q3FY26 and ₹469 lakhs for the nine-month period.

Business Focus and Regulatory Compliance

The company operates in a single business segment focused on manufacturing and sale of jute goods, ensuring compliance with Ind AS 108 regarding segment reporting requirements. Management noted the implementation of new labor codes effective from November 21, 2025, stating that preliminary assessment does not indicate any material incremental liability, though evaluation continues for potential impacts in FY26.

The statutory auditors confirmed that the financial results comply with Indian Accounting Standards and regulatory requirements, with no modified opinions expressed in their limited review report.

Union Textiles Minister Giriraj Singh has announced significant policy changes to address rising raw jute costs, including increased stock limits for mills while reducing limits for traders and balers. These measures aim to protect jute farmers' interests and ensure fair pricing in an industry where approximately 80% of workers and farmers reside in West Bengal.

Government Price Support Measures

The government has implemented a systematic approach to support the jute industry through regular price adjustments. The purchase prices of B. Twill jute bags have seen substantial increases to help the industry cope with rising raw material costs.

Enhanced Enforcement and Industry Support

The Office of the Jute Commissioner will intensify efforts to identify and penalise those hoarding beyond allowed limits, as violations have already been detected. In a meeting with Neelam Shami Rao, Secretary of the Ministry of Textiles, Singh emphasised ensuring sufficient raw jute availability for mills and MSMEs to facilitate smooth industry operations.

The government plans to issue an official notification soon regarding these stock limit changes. Additionally, Singh instructed an increase in subsidised certified jute seeds under the Jute ICARE Scheme by the National Jute Board, aimed at boosting productivity, quality, and farmers' income while ensuring greater raw jute availability for mills.

Strong Financial Performance of Jute Corporation

The Jute Corporation of India Limited (JCI) serves as the central government agency responsible for procuring raw jute from farmers when market prices fall below Minimum Support Price (MSP). The corporation has demonstrated robust financial performance over recent years.

The FY 2024-25 dividend payment of ₹17.04 crore represents an unprecedented amount distributed to the Government of India as JCI's sole shareholder. The Government of India remains committed to supporting JCI's infrastructure and operations for effective MSP implementation.

Comprehensive Industry Stabilisation Strategy

These measures reflect a comprehensive government approach to stabilise the jute industry while ensuring fair practices and support for all stakeholders. By adjusting stock limits and enhancing seed subsidies, the government aims to balance market dynamics and secure livelihoods within this vital sector that plays a crucial role in India's agricultural economy.