Patspin India Limited , a player in the textile industry, has reported a significant increase in net loss for the quarter ended September 30, as the company grapples with financial challenges and seeks debt restructuring to improve its financial health.

Financial Performance

The company's financial results for the quarter paint a concerning picture:

Patspin India reported a net loss of Rs 3.03 crore for the quarter, compared to Rs 2.17 crore loss in the same quarter last year, marking a 39.63% increase in losses year-over-year. The loss also widened by 28.39% compared to the previous quarter's loss of Rs 2.36 crore.

Despite the increase in losses, the company's revenue from operations showed improvement, rising to Rs 13.75 crore from Rs 11.19 crore in the previous quarter, representing a 22.88% increase. Year-over-year, revenue grew by 18.84% from Rs 11.57 crore in the same quarter of the previous year.

Half-Year Performance

For the half-year period ended September 30, Patspin India posted a cumulative net loss of Rs 5.39 crore with revenues of Rs 5.27 crore. The company's financial situation remains challenging, with its net worth eroded and accounts with lenders classified as sub-standard due to irregular debt servicing.

Debt Restructuring Efforts

In response to its financial difficulties, Patspin India has submitted a new resolution plan to lenders for debt restructuring. The plan includes:

1. Moratorium on interest and installment payments
2. Reduction in interest rates
3. Fresh working capital facility

The company reports that banks have conducted a Technical Economic Viability (TEV) study, which has confirmed the viability of the restructuring proposal. The proposal is currently under consideration by the lenders.

Future Outlook

Patspin India plans to resume its own manufacturing of cotton yarn, aiming to improve EBITDA levels and enhance its debt servicing capabilities. The company cites improved demand situations and various government initiatives to support the Indian Textiles Industry as factors that may contribute to its recovery.

However, the company's ability to continue as a going concern remains uncertain, given its eroded net worth and classification of accounts as sub-standard. The success of the debt restructuring plan and the company's ability to improve its operational performance will be crucial for its future viability.

Conclusion

While Patspin India faces significant financial challenges, its efforts to restructure debt and plans to resume manufacturing operations provide a glimmer of hope. Investors and stakeholders will be closely watching the outcome of the debt restructuring proposal and the company's ability to turn around its performance in the coming quarters.

Note: All financial figures are in Indian Rupees (INR) crore unless otherwise stated.

Patspin India Limited , a key player in the Indian textile industry, has announced significant leadership changes and released its financial results for the first quarter ended June 30. The company, known for manufacturing and exporting fine cotton yarns, knitted fabrics, and garments, is undergoing a transition in its top management while facing financial challenges.

Leadership Transitions

The Board of Directors has approved the appointment of Shri Umang Patodia as the new Chairman of the Board, effective August 6. Patodia, who has been serving as the Managing Director, will replace Shri B.K. Patodia. Umang Patodia brings over three decades of experience in the textile industry and has been an integral part of the GTN Group since joining in 1989.

In a move to retain valuable experience, Shri B.K. Patodia has been conferred the lifetime title of Chairman Emeritus. While he will no longer be a member of the Board of Directors, he will serve as a permanent invitee to all Board meetings, albeit without voting rights.

The company has also approved the re-appointment of Shri C.K. Gopalakrishnan Nair as Non-Executive Independent Director for a second consecutive five-year term. Nair, a Textile Engineer with over 35 years of experience in senior positions within the textile industry, will continue to contribute his expertise to Patspin India's operations.

Q1 Financial Performance

Patspin India's financial results for the quarter ended June 30 reflect the ongoing challenges in the textile sector:

The company reported a total revenue of Rs. 1,143.00 lakhs for Q1 FY2026, down 20.79% from Rs. 1,443.00 lakhs in the same quarter last year. Despite a reduction in total expenses, Patspin India posted a net loss of Rs. 236.00 lakhs, marginally lower than the Rs. 237.00 lakhs loss in Q1 FY2025.

Future Outlook and Restructuring Plans

Facing financial headwinds, Patspin India has outlined plans to improve its performance. The company intends to resume its own manufacturing of cotton yarn, anticipating better EBITDA levels and improved debt servicing capabilities. To support this transition, Patspin has submitted a new resolution plan to its lenders, proposing to restructure outstanding debts with a moratorium on interest and installment payments, reduced interest rates, and fresh working capital facilities.

The management noted that 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.

As Patspin India navigates through these changes, the new leadership team faces the challenge of steering the company towards financial stability and growth in a competitive textile market. Stakeholders will be closely watching how the proposed restructuring and strategic shifts under the new chairman unfold in the coming quarters.