Samtex Fashions Reports Deepening Losses Amid Ongoing Financial Challenges
Samtex Fashions Limited, a government-recognized export house, released unaudited financial results for Q2 and H1 ending September 30, 2025, showing continued financial distress. The company reported a loss of 20.55 lakh rupees, up from 19.22 lakh rupees in the same period last year. Total equity stands at negative 23,968.94 lakh rupees, with a corporate guarantee of 807.46 crore rupees classified as a non-performing asset. The company reported no business activity during the period, facing multiple audit qualifications and classification as a willful defaulter by IDBI Bank.
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Samtex Fashions Limited , a government-recognized export house, has released its unaudited financial results for the second quarter and half-year ended September 30, 2025, revealing a continuation of financial distress and operational inactivity.
Financial Performance
The company's consolidated financial statements paint a grim picture of its current state:
| Particulars | Half Year Ended Sept 30, 2025 (Unaudited) | Half Year Ended Sept 30, 2024 (Unaudited) |
|---|---|---|
| Profit for the year | (20.55) | (19.22) |
| Cash generated from operations | (7.99) | (4.73) |
| Net cash generated from operations | (8.16) | (4.78) |
The figures, presented in lakhs of rupees, demonstrate a worsening financial situation compared to the previous year.
Key Concerns
Continued Losses
Samtex Fashions reported a loss of 20.55 lakh rupees for the half-year ended September 30, 2025, compared to a loss of 19.22 lakh rupees in the same period last year.
Negative Equity
As of September 30, 2025, the company's total equity stands at a negative 23,968.94 lakh rupees, indicating severe financial distress.
Corporate Guarantee
A significant corporate guarantee of 807.46 crore rupees has been classified as a non-performing asset, further complicating the company's financial position.
Audit Qualifications
The financial results are subject to multiple audit qualifications, raising concerns about asset impairment, the company's ability to continue as a going concern, and its classification as a willful defaulter by IDBI Bank.
Operational Standstill
The company reported no business activity during the period under review, highlighting the severity of its operational challenges.
Balance Sheet Overview
The consolidated balance sheet as of September 30, 2025, reveals:
| Particulars | Amount (in Lakhs) |
|---|---|
| Total Assets | 35,867.73 |
| Total Equity | (23,968.94) |
| Total Current Liabilities | 59,131.78 |
The negative equity and high current liabilities underscore the company's precarious financial position.
Looking Ahead
The company's ability to overcome its current financial difficulties remains uncertain. Stakeholders, including investors and creditors, may need to closely monitor Samtex Fashions' future actions and any potential restructuring efforts to address its mounting losses and liabilities.
As the fashion industry continues to evolve, Samtex Fashions' path to recovery appears challenging, given its current financial state and operational inactivity.
Historical Stock Returns for Samtex Fashions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.35% | 0.0% | -1.35% | -18.22% | -23.61% | +348.98% |
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