NewsEarningsPatspin India Reports Q1 Loss, Announces Leadership Transition as B.K. Patodia RetiresPatspin India Reports Q1 Loss, Announces Leadership Transition as B.K. Patodia Retires
Patspin India Limited reported a net loss of Rs 236.00 lakhs for Q1, with revenue declining to Rs 1,119.00 lakhs. B.K. Patodia retired as Chairman, with Umang Patodia appointed as the new Chairman. The company faces liquidity challenges and has submitted a debt restructuring plan to lenders, which includes moratorium on interest payments and fresh working capital facility. Patspin plans to resume cotton yarn manufacturing, anticipating improved demand in the Indian Textiles Industry.
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Patspin India Limited , a manufacturer and exporter of fine cotton yarns, knitted fabrics, and garments, has reported its financial results for the first quarter, along with significant leadership changes.
Financial Performance
The company reported a net loss of Rs 236.00 lakhs for Q1, slightly improving from a loss of Rs 237.00 lakhs in the same period last year. Revenue from operations declined to Rs 1,119.00 lakhs from Rs 1,365.00 lakhs year-over-year, indicating continued challenges in the business environment.
Key Financial Highlights
| Particulars (Rs. in lakhs) | Q1 FY2026 | Q1 FY2025 | Change (%) |
|---|---|---|---|
| Revenue from Operations | 1,119.00 | 1,365.00 | -18.02% |
| Total Revenue | 1,143.00 | 1,443.00 | -20.79% |
| Total Expenses | 1,379.00 | 1,680.00 | -17.92% |
| Net Loss | 236.00 | 237.00 | -0.42% |
| Basic EPS (Rs.) | (0.76) | (0.77) | -1.30% |
Leadership Transition
In a significant development, Patspin India announced the retirement of B.K. Patodia as Non-Executive Director and Chairman due to advancing age and health concerns. The Board has conferred upon him the lifetime title of Chairman Emeritus, effective August 6.
Umang Patodia, the current Managing Director and elder son of B.K. Patodia, has been appointed as the new Chairman of the Board. This appointment is effective from August 6, for a period of five years.
Other Board Changes
- C.K. Gopalakrishnan Nair has been re-appointed as a Non-Executive Independent Director for a second consecutive term of 5 years.
- V.N. Balakrishnan has resigned as Non-Executive Independent Director, citing age and personal reasons.
Operational Challenges and Future Plans
Patspin India continues to face liquidity challenges due to the absence of working capital facilities pending debt restructuring. The company is currently operating only job work activities where revenues cover variable costs.
To address these challenges, Patspin has submitted a new resolution plan to lenders for debt restructuring. The proposal includes:
- Moratorium on interest payments
- Restructuring of outstanding debts (WCTL)
- Reduction in interest rates
- Fresh working capital facility
The company's bankers have conducted a Techno-Economic Viability (TEV) study, which has confirmed the viability of the proposal. The plan is currently under consideration by the lenders.
Future Outlook
Patspin India plans to resume its own manufacturing of cotton yarn, anticipating improved demand in the Indian Textiles Industry. The company expects better EBITDA levels and improved debt servicing capabilities with the implementation of the new resolution plan.
As Patspin India navigates through these challenging times, the new leadership under Umang Patodia will be crucial in steering the company towards financial stability and growth. The success of the debt restructuring plan and the revival of manufacturing operations will be key factors to watch in the coming quarters.
Historical Stock Returns for Patspin
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.97% | +4.09% | -4.78% | -18.58% | -31.23% | +97.41% |
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