LWS Knitwear Reports 24.8% Revenue Decline in Q1 FY2026, Improves Margins

LWS Knitwear Limited announced its financial results for the first quarter of fiscal year 2026, revealing a significant revenue decline but improved profitability margins.

Revenue and Profit

The textile company reported a revenue of ₹13.07 crore for Q1 FY2026, marking a 24.8% decrease from ₹17.38 crore in the same quarter of the previous fiscal year. Despite the revenue drop, LWS Knitwear managed to limit the impact on its bottom line, with net profit declining by 15.8% to ₹27.23 lakh compared to ₹32.33 lakh in Q1 FY2025.

Margin Improvements

LWS Knitwear demonstrated operational improvements in the face of revenue challenges:

• Gross profit margin increased to 9.40% from 5.10% year-over-year
• Operating margins slightly improved to 2.70% from 2.50%

These improvements suggest effective cost management strategies implemented by the company.

Cost Optimization

The company's efforts in cost optimization were evident in several areas:

• Material costs decreased to ₹11.85 crore from ₹16.50 crore
• Other expenses reduced significantly to ₹0.09 crore from ₹0.54 crore

These reductions helped offset the pressure from declining revenues.

Financial Position

LWS Knitwear's financial position showed some notable changes:

• Paid-up equity share capital increased to ₹14.63 crore from ₹5.06 crore
• Reserves grew to ₹15.99 crore from ₹7.45 crore

However, earnings per share (EPS) dropped to ₹0.19 from ₹0.64 in the previous year, primarily due to the increase in share capital.

Segment Information

The company continues to operate in a single segment, focusing solely on textiles.

Board Meeting and Auditor's Review

The Board of Directors approved the unaudited financial results for Q1 FY2026 in a meeting held on August 14, 2025. The meeting commenced at 10:00 A.M. and concluded at 11:30 A.M. The limited review report by the statutory auditor, Parmod G. Gupta & Associates, stated 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 applicable accounting standards and other recognized accounting practices and policies.

LWS Knitwear's ability to improve margins and manage costs in a challenging revenue environment demonstrates the company's resilience. However, the significant revenue decline may prompt investors to closely monitor the company's performance in the coming quarters for signs of a potential turnaround in top-line growth.