Simplex Mills Company Limited announced its unaudited financial results for the third quarter ended 31st December, 2025, showing a deterioration in financial performance compared to the corresponding period of the previous year. The Board of Directors approved these results at their meeting held on 10th February, 2026, which commenced at 3.00 p.m. and concluded at 3.45 p.m.

Financial Performance Overview

The company reported a net loss of ₹1.81 lakhs for Q3FY26, marking a significant decline from the profit of ₹0.68 lakhs recorded in Q3FY25. This represents a swing from profitability to loss, highlighting operational challenges faced by the textile company.

Revenue and Income Analysis

Revenue from operations declined to ₹6.35 lakhs in Q3FY26 from ₹8.98 lakhs in Q3FY25, representing a decrease of approximately 29%. Other income remained relatively stable at ₹15.62 lakhs compared to ₹15.79 lakhs in the previous year. Total income for the quarter stood at ₹21.97 lakhs against ₹24.77 lakhs in Q3FY25.

Expense Structure

Total expenses increased to ₹23.78 lakhs in Q3FY26 from ₹24.09 lakhs in Q3FY25. Key expense components included:

• Purchases of stock-in-trade: ₹5.93 lakhs (Q3FY25: ₹8.38 lakhs)
• Employee benefits expense: ₹2.05 lakhs (Q3FY25: ₹0.93 lakhs)
• Finance costs: ₹6.31 lakhs (Q3FY25: ₹5.78 lakhs)
• Other expenses: ₹9.28 lakhs (Q3FY25: ₹8.77 lakhs)

Nine-Month Performance

For the nine months ended 31st December, 2025, the company's performance showed further deterioration. The net loss widened to ₹5.91 lakhs compared to ₹1.41 lakhs in the corresponding period of the previous year.

Corporate Governance and Compliance

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.

Khandelwal & Mehta LLP, Chartered Accountants, conducted a limited review of the financial results. The auditors highlighted in their emphasis of matter that the company has accumulated losses and its net worth has been fully eroded, indicating uncertainty about the company's ability to continue as a going concern. However, the management has prepared the financial statements on a going concern basis.

Key Financial Indicators

The company maintains a paid-up equity share capital of ₹300.04 lakhs with a face value of ₹1,000 per share. The basic and diluted earnings per share for Q3FY26 stood at negative ₹6.04 compared to positive ₹2.27 in Q3FY25. The company operates primarily in the textile segment as its single reportable business segment.

Simplex Mills Company Limited has released its unaudited financial results for the half-year ended September 30, 2025, revealing a deterioration in its financial position. The textile segment operator, headquartered in Akola, Maharashtra, continues to face significant challenges as it grapples with mounting losses and eroded net worth.

Financial Performance

The company's financial results, approved by the Board of Directors on November 12, 2025, paint a concerning picture:

*As of the beginning of the year

Key Concerns

Widening Losses

The net loss for the half-year has nearly doubled compared to the same period last year, indicating a significant deterioration in the company's financial performance.

Eroded Net Worth

The company's net worth has been fully eroded, with accumulated losses and other equity standing at negative ₹651.97 as of September 30, 2025.

Liquidity Crunch

Cash and cash equivalents have drastically decreased from ₹10.20 at the beginning of the year to ₹1.35, suggesting potential liquidity issues.

Going Concern Uncertainty

The auditors have noted uncertainty about the company's ability to continue as a going concern due to accumulated losses and eroded net worth.

Management's Stance

Despite these challenges, the company's management maintains that the financial statements have been prepared on a going concern basis. They assert that loans and advances recoverable from a company with eroded net worth are not impaired, based on projections submitted to the auditors.

Auditor's Review

Khandelwal & Mehta LLP, the company's auditors, conducted a limited review of the financial results. While they did not express an audit opinion, they emphasized the material uncertainty related to the going concern status of the company.

Outlook

The financial results and auditor's notes highlight significant challenges for Simplex Mills Company Limited. The company's ability to reverse its fortunes and address its financial difficulties will be crucial for its future operations and stakeholder confidence.

Investors and stakeholders are advised to closely monitor the company's future announcements and any strategic initiatives that may be undertaken to improve its financial position.