Rajapalayam Mills Reports Mixed Q3FY26 Results with Standalone Loss but Strong Consolidated Performance
Rajapalayam Mills Limited reported mixed Q3FY26 results with standalone net loss of ₹791.68 lakhs versus Q2FY26 profit of ₹847.82 lakhs, while revenue remained stable at ₹24,267.62 lakhs. Consolidated performance was strong with net profit of ₹5,953.22 lakhs driven by ₹6,744.90 lakhs contribution from associates. Nine-month consolidated EPS improved significantly to ₹92.08 from ₹23.56 in the previous year, demonstrating the company's diversified business strength through its associate investments.

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Rajapalayam Mills Limited announced its Q3FY26 financial results for the quarter ended December 31, 2025, presenting a mixed performance with contrasting outcomes between standalone and consolidated operations. The textile manufacturer's board approved the unaudited financial results during their meeting held on February 12, 2026.
Standalone Financial Performance
The company's standalone operations faced challenges during Q3FY26, reporting a net loss despite maintaining steady revenue levels. The financial metrics reflect operational pressures across various expense categories.
| Metric | Q3FY26 | Q2FY26 | Q3FY25 | Change (QoQ) | Change (YoY) |
|---|---|---|---|---|---|
| Revenue from Operations | ₹24,267.62 lakhs | ₹24,145.53 lakhs | ₹22,934.34 lakhs | +0.51% | +5.81% |
| Total Income | ₹24,663.93 lakhs | ₹25,355.09 lakhs | ₹23,415.67 lakhs | -2.72% | +5.33% |
| Net Loss/Profit | ₹(791.68) lakhs | ₹847.82 lakhs | ₹(1,921.06) lakhs | Loss vs Profit | Reduced Loss |
| Earnings per Share | ₹(8.59) | ₹9.20 | ₹(20.84) | - | - |
Expense Analysis and Operational Metrics
The company's expense structure showed mixed trends across different categories. Total expenses increased to ₹25,771.81 lakhs in Q3FY26 compared to ₹24,225.38 lakhs in the previous quarter. Notable changes included a significant increase in power and fuel costs to ₹2,110.48 lakhs from ₹415.09 lakhs in Q2FY26.
Key Expense Components (Q3FY26):
- Cost of materials consumed: ₹11,122.49 lakhs
- Employee benefits expenses: ₹3,214.94 lakhs
- Finance costs: ₹2,322.00 lakhs
- Depreciation and amortization: ₹1,901.54 lakhs
Consolidated Results Show Strong Performance
In stark contrast to standalone performance, the consolidated results demonstrated robust profitability, primarily driven by contributions from associate companies.
| Parameter | Q3FY26 | Q2FY26 | Q3FY25 |
|---|---|---|---|
| Consolidated Net Profit | ₹5,953.22 lakhs | ₹1,709.70 lakhs | ₹3,429.65 lakhs |
| Share of Associates' Profit | ₹6,744.90 lakhs | ₹1,623.20 lakhs | ₹5,350.71 lakhs |
| Consolidated EPS | ₹64.68 | ₹18.58 | ₹37.26 |
Nine-Month Performance Overview
For the nine-month period ended December 31, 2025, the company showed improved performance compared to the corresponding period last year. Standalone operations reported a net loss of ₹1,168.16 lakhs compared to ₹3,653.51 lakhs in the previous year, indicating significant improvement in operational efficiency.
The consolidated nine-month results were particularly strong, with net profit reaching ₹8,475.30 lakhs compared to ₹2,168.83 lakhs in the corresponding period last year. The consolidated earnings per share for nine months stood at ₹92.08 compared to ₹23.56 in the previous year.
Segment Performance and Business Operations
The company operates primarily in two segments: textiles and wind mills. The textile segment generated revenue of ₹24,267.62 lakhs in Q3FY26, while the wind mills segment contributed ₹585.53 lakhs. The textile segment showed a profit before finance cost and tax of ₹990.79 lakhs, while wind mills contributed ₹136.42 lakhs.
Financial Position and Exceptional Items
The company's net worth stood at ₹41,943.36 lakhs for the nine-month period. Exceptional items during Q3FY26 included a profit of ₹54.34 lakhs from the sale of property, plant, and equipment. The company also reported other comprehensive income of ₹99.86 lakhs, primarily from remeasurement gains on defined benefit obligations.
The financial results were reviewed by the audit committee and approved by the board of directors, with statutory auditors providing an unmodified opinion on the limited review conducted.
Historical Stock Returns for Rajapalayam Mills
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.87% | +2.21% | +3.75% | -5.61% | -2.67% | +22.11% |


































