Mahalaxmi Fabric Mills Limited has announced its unaudited financial results for the third quarter ended December 31, 2025, showing continued challenges in its standalone operations despite receiving insurance settlements related to the fire incident that occurred in November 2024. The traditional textiles manufacturer reported widened losses on a standalone basis while showing some improvement in consolidated performance.

Standalone Financial Performance

The company's standalone operations reflected significant pressure during Q3FY26. Revenue from operations declined to ₹1360.93 lakhs compared to ₹1607.15 lakhs in Q3FY25, representing a decrease in operational income. The net loss widened substantially to ₹317.64 lakhs from ₹206.10 lakhs in the corresponding quarter of the previous year.

The company's total expenditure for the quarter stood at ₹1496.63 lakhs compared to ₹1999.77 lakhs in Q3FY25, showing reduced operational costs.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the standalone performance showed mixed results. Revenue from operations reached ₹3837.95 lakhs compared to ₹5866.48 lakhs in the corresponding nine-month period of FY25. The net loss for nine months widened to ₹934.30 lakhs from ₹295.17 lakhs in the previous year.

Consolidated Results Show Improvement

On a consolidated basis, which includes the performance of wholly-owned subsidiary Mahalaxmi Exports Private Limited, the company demonstrated better performance. The consolidated net loss for Q3FY26 was ₹75.65 lakhs compared to ₹106.90 lakhs in Q3FY25, showing improvement in overall group performance.

For the nine-month period, consolidated operations showed a net loss of ₹157.43 lakhs compared to a net profit of ₹68.11 lakhs in the corresponding period of FY25.

Insurance Settlement and Fire Impact

The company received significant insurance settlement during the quarter related to the fire incident that occurred at its factory premises on November 24, 2024. The final assessment and settlement of insurance claims relating to inventories, including third-party stock and accrued job work charges, was completed during Q3FY26. The net amount of ₹2.97 crores was disclosed as exceptional income in the Statement of Profit and Loss.

This follows the previous quarter's settlement where ₹4.44 crores was received for fixed assets damaged in the fire. The company continues reconstruction and restoration activities, including construction of a new factory building, installation of plant and machinery, and development of related infrastructure. Production operations have recommenced on a gradual basis.

Operational Highlights

Mahalaxmi Fabric Mills operates in the traditional textiles segment, which represents its only reportable operating segment. The company's paid-up equity share capital remains at ₹1062.03 lakhs with a face value of ₹10 per share. The financial results were reviewed by the Audit Committee and approved by the Board of Directors on February 13, 2026, with limited review conducted by statutory auditors Jain Chowdhary & Co.

Mahalaxmi Fabric Mills Limited has announced its unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, along with a significant update on its insurance claim settlement following a fire incident last year.

Insurance Claim Settlement

The company has received the final assessment and settlement of insurance claims for fixed assets, including building, plant and machinery, and furniture fixtures equipment. This settlement is related to a fire that occurred at the company's factory premises on November 24, 2024. The settled amount has been presented as an exceptional item in the profit and loss statement.

Financial Performance

For the quarter ended September 30, 2025, Mahalaxmi Fabric Mills reported the following consolidated results:

The company's performance shows a significant decline in revenue and profitability compared to the same quarter last year, likely impacted by the aftermath of the fire incident.

Operational Update

Mahalaxmi Fabric Mills operates in the traditional textiles segment. Following the fire incident, the company has commenced reconstruction and restoration activities, including the construction of a new factory building and installation of plant machinery. The management expects to resume production operations in due course.

Ongoing Claims Process

While the fixed asset claims have been settled, the final assessment and receipt of claims relating to stocks is still awaited. This pending settlement may have further implications for the company's financial position in future quarters.

Future Outlook

The company's focus on rebuilding its manufacturing capabilities suggests a commitment to restoring its operational capacity. However, the timeline for full resumption of production and the potential impact on future financial performance remain uncertain.

Investors and stakeholders should note that the company's financial results reflect the ongoing challenges from the fire incident and subsequent reconstruction efforts. The coming quarters may provide more clarity on the company's recovery trajectory and return to normal operations.