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.

Mahalaxmi Fabric Mills Limited (MFML) has reported a strong performance for the first quarter, marking a significant turnaround in its financial results.

Financial Highlights

• Total income from operations surged 78% to Rs. 3,351.78 crore, up from Rs. 1,881.54 crore in the same quarter last year.
• The company turned profitable with a net profit after tax of Rs. 25.86 crore, compared to a loss of Rs. 129.89 crore in the previous year's corresponding quarter.
• EBITDA margin expanded to 5.8% from 3.8% year-on-year.

Operational Performance

• Volume growth of approximately 45% year-on-year.
• Capacity utilization improved to 78% from 65%.

Strategic Developments

1. New Product Line: MFML commissioned a new technical textiles product line.
2. Distribution Network Expansion: Added 50 new dealers to strengthen market presence.
3. Cost Efficiency: Reduced power costs by 8% through energy efficiency measures.

Management Outlook

• The company expects 20-25% revenue growth for the full year.
• MFML targets an EBITDA margin of 8-9%.
• Plans for Rs. 50 crore capex over the next two years for modernization and capacity enhancement.

Financial Results Publication

According to the LODR filing dated August 18, 2025, Mahalaxmi Fabric Mills Limited has published its unaudited financial results for the first quarter ended June 30, 2025, in compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were published in 'The Indian Express' (English) and 'The Financial Express' (Gujarati) on August 15, 2025.

The company's strong performance in Q1 reflects a robust recovery and effective implementation of strategic initiatives. With improved operational efficiency and a positive outlook, Mahalaxmi Fabric Mills Limited appears well-positioned for sustained growth in the coming quarters.