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.

Santosh Fine Fab Limited , a Mumbai-based textile manufacturing company, has reported a significant improvement in its financial performance for the first quarter. The company's unaudited financial results show a robust revenue growth and a substantial reduction in losses.

Revenue Growth

The company's total income from operations for the quarter stood at Rs 4.20 crores, marking a 24.3% year-over-year increase from Rs 3.38 crores in the same quarter of the previous year. This growth in revenue is attributed to a recovery in textile demand, indicating a positive trend in the industry.

Narrowing Losses

Santosh Fine Fab has made significant progress in reducing its losses. The net loss for the quarter narrowed to Rs 4.87 lakhs, compared to a loss of Rs 18.25 lakhs in the corresponding quarter of the previous year. This represents a substantial improvement of 73.3% in the company's bottom line.

Financial Highlights

The company's net profit margin, although still negative, has improved significantly from -5.40% to -1.16%, indicating enhanced operational efficiency.

Capital Structure

Santosh Fine Fab's equity share capital remains unchanged at Rs 352.46 lakhs, with a net paid-up capital of Rs 343.32 lakhs after accounting for calls in arrears on 305,400 shares.

Earnings Per Share

The basic and diluted earnings per share (EPS) for the quarter stood at Rs (0.14), showing an improvement from Rs (0.52) in the same quarter of the previous year.

While the company has not provided specific operational metrics or forward-looking guidance, the significant improvement in financial performance suggests that Santosh Fine Fab is on a path to recovery. The management's efforts in improving operational efficiency and capitalizing on the recovering textile demand appear to be yielding positive results.