Santosh Fine Fab Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, under Regulation 33 of SEBI listing requirements. The Board of Directors approved these results at their meeting held on February 11, 2026, which commenced at 4:30 PM and concluded at 5:15 PM.

Quarterly Financial Performance

The company's Q3FY26 performance showed a decline across key metrics compared to the same quarter in the previous year. Revenue from operations decreased significantly, while profitability also contracted during the quarter.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the company showed mixed results with improved revenue but continued losses. The company managed to reduce its losses significantly compared to the previous year's nine-month period.

Cost Structure and Operational Metrics

The company's expense breakdown for Q3FY26 revealed cost of materials consumed at ₹147.86 lakhs, employee benefits expenses at ₹60.14 lakhs, and finance costs at ₹17.39 lakhs. Other expenses accounted for ₹111.13 lakhs during the quarter. Purchase of stock-in-trade was ₹25.62 lakhs, while the company benefited from a positive change in inventories of ₹21.05 lakhs.

Capital Structure and Share Information

The company maintained its paid-up equity share capital at ₹352.46 lakhs with a face value of ₹10.00 per share. However, calls in arrears of ₹9.14 lakhs on 305,400 shares resulted in a net paid-up capital of ₹343.32 lakhs. The company operates in the manufacturing of fabrics segment and has only one reportable business segment.

Audit and Compliance

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors on February 11, 2026. Jhunjhunwala Jain & Associates LLP, the company's statutory auditors, conducted a limited review of the results. The auditors confirmed that nothing came to their attention suggesting material misstatements in the financial results prepared in accordance with Indian Accounting Standards.

Santosh Fine Fab Limited, a fabric manufacturing company, has reported a turnaround in its financial performance for the quarter ended September 30, 2025. The company's latest financial results indicate a shift from loss to profit, alongside an increase in net sales.

Q2 FY26 Performance Highlights

• Profit Recovery: Santosh Fine-Fab posted a profit of Rs 1.45 lakhs for Q2 FY26, a significant improvement from the loss of Rs 4.87 lakhs in the previous quarter.
• Revenue Growth: Net sales increased to Rs 493.55 lakhs in Q2 FY26, up from Rs 419.99 lakhs in the previous quarter, marking a growth of about 17.5%.
• Half-Year Results: For H1 FY26, the company reported a reduced loss of Rs 3.42 lakhs, compared to a loss of Rs 17.31 lakhs in the corresponding period of the previous year.

Financial Performance Table

Operational Insights

The company's financial statements reveal several key points:

• Cost Management: The cost of materials consumed stood at Rs 339.53 lakhs in Q2 FY26.
• Employee Expenses: Employee benefits expenses were Rs 35.76 lakhs for the quarter.
• Finance Costs: The company incurred finance costs of Rs 32.88 lakhs in Q2 FY26.
• Depreciation: Depreciation and amortization expenses amounted to Rs 7.30 lakhs.

Balance Sheet Overview

As of September 30, 2025:

• Total Assets: Rs 1,662.63 crores
• Equity Share Capital: Rs 343.33 crores
• Other Equity: Rs 226.68 crores

Cash Flow Highlights

For the half-year ended September 30, 2025:

• Net Cash Flow from Operating Activities: Rs (1.01) lakhs
• Net Cash Flow from Investing Activities: Rs (0.76) lakhs
• Net Cash Flow from Financing Activities: Rs (0.30) lakhs

Future Outlook

While the company has shown signs of recovery, it continues to face challenges as evidenced by the half-yearly loss. The increase in net sales and the return to profitability in Q2 FY26 may indicate a positive trend, but sustained performance in the coming quarters will be crucial for long-term stability.

Investors and stakeholders may want to monitor the company's ability to maintain profitability, manage costs, and capitalize on market opportunities in the fabric manufacturing sector.

Note: All financial figures are based on the unaudited financial results for the quarter and half-year ended September 30, 2025, as reported by Santosh Fine-Fab Limited.