Lakshmi Mills Company achieved a significant financial turnaround in the quarter ended March 2026, reporting a standalone net profit of ₹1.92 crore compared to a net loss of ₹0.66 crore in the corresponding quarter of the previous year. According to reports from Business Standard, this represents a complete reversal in the company's quarterly performance, demonstrating improved operational efficiency and financial management during the quarter. The company's revenue from operations stood at ₹66.24 crore in Q4 FY2026, showing a 6.11% decline from ₹70.55 crore in Q4 FY2025, reflecting market conditions or operational adjustments that impacted the top-line performance.
For the complete financial year 2026, Lakshmi Mills reported a net loss of ₹15.55 crore compared to a net loss of ₹4.68 crore in the previous financial year. The widened loss was significantly influenced by a deferred tax expense of ₹2,119.53 lakhs for the year, consequent to the adoption of the new tax regime under Section 115BAA of the Income Tax Act, 1961. This required adjustments to deferred tax assets relating to brought-forward unabsorbed additional depreciation and MAT credit entitlement amounting to ₹1,948.70 lakhs. Despite this impact, the company achieved a profit before tax of ₹730.22 lakhs in FY26, reversing a pre-tax loss of ₹718.91 lakhs in the prior year, indicating an improvement in underlying operational performance. Revenue from operations for FY26 stood at ₹24,183.48 lakhs, compared to ₹26,316.27 lakhs in FY25, while total expenses declined to ₹23,787.97 lakhs from ₹27,693.95 lakhs in FY25, reflecting cost moderation across key line items.
The company demonstrated improved operational performance with operating profit margin (OPM) improving to 11.31% in Q4 FY2026 from 9.00% in the corresponding quarter of the previous year. PBDT increased significantly by 77% to ₹6.28 crore from ₹3.55 crore year-on-year, while PBT improved to ₹2.73 crore compared to a loss of ₹0.99 crore in Q4 FY2025, indicating enhanced operational efficiency and cost management during the quarter. Finance costs for the year reduced to ₹1,026.36 lakhs from ₹1,540.23 lakhs, while depreciation and amortisation expenses declined to ₹1,375.86 lakhs from ₹1,753.05 lakhs, reflecting improved asset utilization and operational efficiency.
The company operates through two reportable business segments - Textiles (manufacturing and sale of yarn, and trading in fabrics) and Rental Services (letting out of properties). The Textiles segment reported a loss before interest and tax of ₹246.14 lakhs in FY26, a significant improvement from a loss of ₹1,150.68 lakhs in FY25. The Rental Services segment continued to deliver positive results, with a profit before interest and tax of ₹2,034.49 lakhs in FY26, up from ₹1,750.22 lakhs in FY25. Total segment assets as at March 31, 2026 stood at ₹89,839.99 lakhs, compared to ₹1,15,234.12 lakhs as at March 31, 2025, while total segment liabilities declined to ₹18,608.16 lakhs from ₹26,435.93 lakhs. The company's total assets as at March 31, 2026 stood at ₹89,839.99 lakhs, compared to ₹1,15,234.12 lakhs as at March 31, 2025, with total equity as ₹71,231.83 lakhs comprising equity share capital of ₹695.55 lakhs and other equity of ₹70,536.28 lakhs.
The Board of Directors announced the closure of the Register of Members for the upcoming Annual General Meeting scheduled on September 25, 2026. The key dates are as follows: Book Closure: September 19-25, 2026 and E-voting: September 22-24, 2026. The Board of Directors recommended a dividend of 10% (₹10/- per equity share) for the financial year ended March 31, 2026, subject to deduction of tax as applicable. The statutory auditors, M/s. Subbachar & Srinivasan, Chartered Accountants, Coimbatore, issued an unmodified and unqualified opinion on the audited standalone financial results for the year ended March 31, 2026, with the results reviewed and recommended by the Audit Committee and approved by the Board at their meeting held on May 18, 2026.
