Wires & Fabriks (S.A.) Limited, a key player in the textile and paper manufacturing industry, has announced its financial results for the second quarter and half-year ended September 30, 2025, alongside significant changes to its board composition.

Financial Performance

The company reported a mixed financial performance for Q2 FY2026:

While the company saw a year-on-year increase in revenue, profitability declined significantly. The revenue from operations for Q2 FY2026 stood at Rs. 2,934.16 lakhs, up from Rs. 2,779.26 lakhs in the same quarter last year. However, net profit for the quarter decreased to Rs. 2.49 lakhs from Rs. 42.98 lakhs in Q2 FY2025.

For the half-year, total income increased to Rs. 5,760.25 lakhs from Rs. 5,433.84 lakhs in H1 FY2025. Despite this growth, the company's net profit for H1 FY2026 declined to Rs. 3.70 lakhs compared to Rs. 50.47 lakhs in the previous year.

Balance Sheet Highlights

As of September 30, 2025, the company's total assets stood at Rs. 20,451.12 lakhs, a slight decrease from Rs. 20,804.12 lakhs as of March 31, 2025. Notably, cash and cash equivalents improved to Rs. 243.12 lakhs from Rs. 28.88 lakhs at the end of the previous fiscal year.

Board Changes and Corporate Governance

In a significant development, the company's board of directors approved the appointment of Mrs. Shailja Khaitan as an Additional Director (Non-Executive Non-Independent) effective November 13, 2025. Mrs. Khaitan, 62, brings over 25 years of experience in the textile sector to the board.

Simultaneously, Mrs. Pranika Khaitan Rawat resigned from her position as Non-Executive Non-Independent Director, citing pre-occupation and other professional commitments.

The Nomination and Remuneration Committee was also reconstituted following these changes, with Dr. Sudhir Bhandhari appointed as Chairman, and Mr. Rishi Bajoria and Mrs. Shailja Khaitan serving as members.

Outlook

Wires & Fabriks has shown revenue growth, but the decline in profitability may be a point of focus for investors. The company's improved cash position could provide flexibility in managing operations. The recent board changes and restructuring of key committees might bring new perspectives to the company's strategies.

Wires & Fabriks (S.A.) Limited , a prominent player in the industrial fabrics sector, has released its unaudited financial results for the quarter ended June 30, revealing a mixed performance with revenue growth but a decline in profitability.

Financial Highlights

The company reported a notable increase in revenue from operations, which rose to Rs 2794.78 lakh, up from Rs 2544.47 lakh in the same quarter last year, marking a 9.8% year-over-year growth. Total income for the quarter reached Rs 2815.22 lakh, compared to Rs 2650.46 lakh in the previous year's corresponding period.

However, despite the revenue growth, Wires & Fabriks experienced a significant decline in profitability. The company's profit for the period dropped to Rs 1.21 lakh from Rs 7.49 lakh year-over-year, representing a substantial decrease of 83.8%.

Key Financial Metrics

The company's earnings per share (EPS) also reflected the profit decline, dropping to Rs 0.04 from Rs 0.25 in the same period last year.

Operational Performance

The increase in revenue was accompanied by a rise in total expenses, which grew to Rs 2811.89 lakh from Rs 2628.64 lakh in the previous year. This 7.0% increase in expenses outpaced the revenue growth, contributing to the squeeze on profitability.

Corporate Governance Update

In a separate announcement, Wires & Fabriks disclosed that Mr. Saroj Khemka (DIN: 00489838) will complete his second consecutive term as a Non-Executive Independent Director on August 11. Consequently, Mr. Khemka will cease to be an Independent Director of the company effective August 12.

Management Commentary

The financial results were approved by the Board of Directors in a meeting held on August 8, which was reviewed by the Audit Committee and accompanied by a Limited Review Report from statutory auditors.

While the company has shown resilience in growing its top line amidst challenging market conditions, the significant drop in profitability may raise concerns among investors. The management will likely need to address cost pressures and operational efficiencies in the coming quarters to improve bottom-line performance.

Investors and stakeholders will be watching closely to see how Wires & Fabriks navigates these challenges and capitalizes on its revenue growth momentum in the subsequent quarters of the fiscal year.