Padam Cotton Yarns Limited announced its unaudited financial results for the quarter ended December 31, 2025, along with significant board changes during its meeting held on February 09, 2026. The company reported strong operational performance with substantial revenue growth compared to the previous year.

Financial Performance Overview

The company's financial results for Q3FY26 demonstrate robust business performance across key metrics:

Nine Months Performance

For the nine months ended December 31, 2025, the company achieved strong financial results:

Cost Structure and Expenses

The company's expense breakdown for Q3FY26 shows:

• Cost of materials consumed: ₹1,868.50 lakhs
• Change in inventories: ₹(347.74) lakhs
• Employee benefits expense: ₹6.44 lakhs
• Finance costs: ₹0.01 lakhs
• Depreciation and amortisation: ₹0.68 lakhs
• Other expenses: ₹21.39 lakhs

Total expenses for the quarter amounted to ₹1,549.28 lakhs, resulting in a profit before tax of ₹305.49 lakhs.

Board Changes and Corporate Governance

The Board of Directors approved several important changes during the February 09, 2026 meeting:

Director Resignation:

• Mr. Mahendra Singh (DIN: 07684132) resigned as Non-Executive Director effective from the closure of business hours on February 09, 2026

Category Change:

• Mr. Ashutosh Allaru (DIN: 07618648) category changed from Non-Executive Independent Director to Non-Executive Non Independent Director effective February 09, 2026
• His office shall be liable to retire by rotation under the new category

Audit and Compliance

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors. S V J K and Associates, Chartered Accountants (FRN: 135182W), conducted a limited review of the financial statements. The auditors confirmed that nothing came to their attention suggesting the financial results were not prepared in accordance with applicable Indian Accounting Standards.

The company operates in a single segment, and the financial statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules 2015 prescribed under Section 133 of the Companies Act 2013. The Board meeting commenced at 05:00 P.M. (IST) and concluded at 05:30 P.M. (IST) on February 09, 2026.

Padam Cotton Yarns Limited , a key player in the textile industry, has reported significant growth in its financial performance for the quarter ended September 30, 2025. The company's Board of Directors approved the unaudited standalone and consolidated financial results, showcasing substantial improvements across various financial metrics.

Financial Highlights

The company's financial position has strengthened considerably, with total assets rising to Rs 5,271.58 crore as of September 30, 2025, compared to Rs 3,688.00 crore in the previous period. This represents a notable increase of 42.9% in the company's asset base.

*All figures in Rs crore

Key Observations

1. Trade Receivables: The company witnessed a substantial increase in trade receivables, which more than doubled to Rs 2,769.23 crore from Rs 1,328.46 crore. This significant rise may indicate strong sales growth or changes in credit policies.

2. Equity Position: While the equity share capital remained constant at Rs 1,291.00 crore, other equity saw a remarkable growth of 107.6%, increasing to Rs 824.67 crore from Rs 397.25 crore. This boost in other equity suggests improved profitability and retention of earnings.

3. Trade Payables: Trade payables due to others also saw a significant increase, rising to Rs 2,244.92 crore from Rs 1,036.43 crore, indicating expanded business operations or changes in payment terms with suppliers.

Operational Performance

For the quarter ended September 30, 2025, Padam Cotton Yarns reported:

• Revenue from operations: Rs 1,708.79 crore
• Profit before tax: Rs 320.86 crore
• Net profit: Rs 224.48 crore

Audit and Compliance

The financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors in their meeting held on November 5, 2025. The statutory auditors have conducted a limited review and confirmed that the results comply with applicable accounting standards.

Conclusion

Padam Cotton Yarns Limited's Q2 FY2026 results demonstrate robust growth across key financial metrics. The significant increases in total assets, trade receivables, and other equity indicate a period of expansion and improved financial health for the company. However, investors and analysts may want to closely monitor the rise in trade payables and receivables to ensure they align with the company's growth strategy and working capital management.

As the textile industry continues to evolve, Padam Cotton Yarns appears to be positioning itself for further growth, capitalizing on market opportunities while maintaining compliance with regulatory standards.