Simplex Mills Reports Widening Losses Amid Ongoing Financial Challenges
Simplex Mills Company Limited's unaudited financial results for H1 FY2026 show deteriorating financial health. Net loss nearly doubled to ₹4.10 crore, while total income marginally increased to ₹32.08 crore. The company's net worth is fully eroded with accumulated losses and other equity at negative ₹651.97 crore. Cash and cash equivalents dropped significantly from ₹10.20 crore to ₹1.35 crore. Auditors have raised concerns about the company's ability to continue as a going concern, though management maintains a positive outlook based on projected recoveries.
*this image is generated using AI for illustrative purposes only.
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:
| Metric | Half-Year Ended Sept 30, 2025 | Half-Year Ended Sept 30, 2024 | Change |
|---|---|---|---|
| Net Loss | ₹4.10 | ₹2.09 | 96.17% |
| Total Income | ₹32.08 | ₹31.24 | 2.69% |
| Cash and Cash Equivalents | ₹1.35 | ₹10.20* | -86.76% |
*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.
Historical Stock Returns for Simplex Mills Company
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -100.00% | 0.0% | -100.00% | -100.00% | -100.00% | -100.00% |
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