Cravatex achieved a significant financial turnaround in the quarter ended June 2026, reporting a consolidated net profit of ₹43.81 lakh compared to a net loss of ₹136.77 lakh in the corresponding quarter of the previous year. According to the latest financial results approved by the Board of Directors on August 12, 2026, this represents a complete reversal of the company's financial performance from the same period last year. The profit turnaround was aided by a ₹202.36 lakh positive inventory adjustment at the group level, offsetting higher operational costs and enabling the company to return to profitability.
The company's consolidated revenue from operations increased by 39.3% to ₹3,222.45 lakh in Q1 FY27, as compared to ₹2,312.69 lakh recorded in the same quarter of the previous financial year. As reported in the unaudited standalone and consolidated financial results, consolidated total income reached ₹3,662.63 lakh, driven by operating revenue of ₹440.18 lakh and other income of ₹2,222.45 lakh. The substantial revenue growth contributed to the overall improvement in the company's financial position during the quarter.
The company's operating profit margin (OPM) improved to -10.15% in Q1 FY26 from -26.37% in the corresponding quarter of the previous year. According to the financial data, total expenses increased to ₹3,595.70 lakh from ₹2,969.81 lakh in the same period last year, primarily due to higher purchase of stock-in-trade which rose to ₹1,799.53 lakh. However, a favorable change in inventories of stock-in-trade amounting to ₹202.36 lakh significantly reduced total expenses and enabled the overall profitability turnaround despite the negative margins still being recorded.
PBDT (Profit Before Depreciation and Tax) increased to ₹1.05 crore in Q1 FY26 from ₹0.99 crore in the previous year's corresponding quarter. As reported in the financial results, PBT (Profit Before Tax) rose to ₹0.67 crore from ₹1.36 crore in the same period last year. The company's net profit of ₹43.81 lakh demonstrates the successful turnaround from the previous year's losses, with basic EPS improving to ₹1.70 from ₹(5.29) in Q1 FY26. The results were audited by GPS & Associates who issued an unmodified limited review report on the statements prepared in accordance with Ind AS.
