Aanandalakshmi Spinning Mills Reports FY26 Net Loss of ₹299.11 Lakhs as Discontinued Spinning Operations Weigh on Results

Aanandalakshmi Spinning Mills Limited reported its audited financial results for the quarter and year ended March 31, 2026, at a Board of Directors meeting held on May 07, 2026. The company recorded a net loss of ₹299.11 lakhs for FY26, a sharp reversal from the net profit of ₹308.60 lakhs posted in FY25, as losses from discontinued spinning operations and exceptional charges weighed heavily on the overall performance.

Financial Performance: FY26 vs FY25

The company's continuing operations delivered a profit of ₹165.15 lakhs in FY26, down from ₹338.12 lakhs in FY25. Revenue from operations declined to ₹203.29 lakhs from ₹254.14 lakhs, while other income fell sharply to ₹45.96 lakhs from ₹177.63 lakhs, resulting in total income of ₹249.25 lakhs against ₹431.77 lakhs in the prior year. Total expenses from continuing operations also contracted to ₹81.03 lakhs from ₹93.65 lakhs. The following table summarises the key financial metrics for the full year:

Metric: FY26 (₹ Lakhs) FY25 (₹ Lakhs) Revenue from Operations: 203.29 254.14 Other Income: 45.96 177.63 Total Income: 249.25 431.77 Total Expenses (Continuing): 81.03 93.65 Profit from Continuing Operations (after tax): 165.15 338.12 Loss from Discontinued Operations (after tax): (464.26) (29.52) Net Profit / (Loss): (299.11) 308.60 Basic & Diluted EPS – Continuing Operations (₹): 4.72 9.66 Basic & Diluted EPS – Discontinued Operations (₹): (13.27) (0.84) Basic & Diluted EPS – Continuing & Discontinued (₹): (8.55) 8.82

Quarterly Performance: Q4 FY26

For the quarter ended March 31, 2026, the company reported total income of ₹64.49 lakhs, compared to ₹297.00 lakhs in Q4 FY25 and ₹76.27 lakhs in Q3 FY26. Profit from continuing operations stood at ₹44.68 lakhs for Q4 FY26, while the discontinued spinning division recorded a loss of ₹15.73 lakhs during the same quarter. The net profit for Q4 FY26 was ₹28.95 lakhs, against ₹340.48 lakhs in Q4 FY25.

Metric: Q4 FY26 (₹ Lakhs) Q3 FY26 (₹ Lakhs) Q4 FY25 (₹ Lakhs) Revenue from Operations: 64.12 31.49 147.11 Total Income: 64.49 76.27 297.00 Profit from Continuing Operations (after tax): 44.68 60.15 271.41 Loss from Discontinued Operations (after tax): (15.73) (186.00) 69.07 Net Profit / (Loss): 28.95 (125.85) 340.48

Discontinued Spinning Operations and Exceptional Items

The Board of Directors resolved to discontinue the spinning division with effect from September 22, 2020, following a resolution passed on August 13, 2020, citing continued cash losses that rendered the division unviable. The non-current assets of the spinning division have been classified as assets held for sale, with property, plant, and equipment valued at ₹15.08 lakhs as at March 31, 2026. For FY26, the discontinued spinning division reported total income of ₹21.06 lakhs against total expenditure of ₹121.44 lakhs, resulting in a pre-tax loss of ₹100.38 lakhs. Exceptional items of ₹363.88 lakhs were recorded, comprising:

Write-off of export duty credit: ₹176.02 lakhs (no longer realisable)

Provision for cross-subsidy payable: ₹187.85 lakhs

After exceptional items, the total loss from discontinued operations for FY26 stood at ₹464.26 lakhs.

Balance Sheet and Cash Flow Highlights

The company's total assets declined to ₹472.22 lakhs as at March 31, 2026, from ₹794.03 lakhs as at March 31, 2025. Total equity remained deeply negative at ₹(1,834.44) lakhs, reflecting accumulated losses of ₹3,748.69 lakhs. The financial statements have been prepared on a going concern basis, considering the market value of the company's new activity. Current liabilities stood at ₹2,306.66 lakhs, exceeding current assets of ₹305.01 lakhs. Non-current liabilities declined to nil from ₹345.50 lakhs in the prior year, as borrowings and other financial liabilities under that category were fully settled. The key balance sheet figures are presented below:

Metric: March 31, 2026 (₹ Lakhs) March 31, 2025 (₹ Lakhs) Total Non-Current Assets: 167.21 172.05 Total Current Assets: 305.01 621.98 Total Assets: 472.22 794.03 Total Equity: (1,834.44) (1,535.33) Total Non-Current Liabilities: — 345.50 Total Current Liabilities: 2,306.66 1,983.86

Net cash flow from operating activities was ₹254.13 lakhs for FY26, compared to ₹692.47 lakhs in FY25. Net cash used in investing activities was ₹(0.27) lakhs, while net cash used in financing activities was ₹(271.60) lakhs. Cash and cash equivalents at the end of the year declined to ₹2.38 lakhs from ₹20.12 lakhs at the beginning of the year.

Audit Qualifications and Impact on Financial Statements

Statutory auditors K.S. Rao & Co., Chartered Accountants, issued a qualified opinion on the financial results, citing two matters:

No provision has been made for interest payable on outstanding unpaid statutory dues of Tax Deducted at Source, amounting to ₹3.30 lakhs.

Long-pending payables aggregating to ₹136.57 lakhs have exceeded the limitation period under the Limitation Act, 1963, and the auditors were unable to determine whether adjustments to the financial statements are required. This qualification has been repetitive for five years.

The impact of these audit qualifications on the reported financials is summarised below:

Particulars: Audited Figures (₹ Lakhs) Adjusted Figures (₹ Lakhs) Turnover / Total Income: 270.31 270.31 Total Expenditure: 566.35 569.65 Net Profit / (Loss): (299.11) (302.41) Earnings Per Share (₹): (8.55) (8.64) Total Assets: 472.22 472.22 Total Liabilities: 2,306.66 2,327.64 Net Worth: (1,834.44) (1,853.53)

Corporate Developments

The Board also approved the appointment of M/s. LANS & CO., Chartered Accountants as internal auditors of the company for the financial year 2026-27. Additionally, commission income includes ₹0.17 lakhs for the year ended March 31, 2026, recognised without any agreement or customary confirmation. The company noted that segment reporting as per Ind-AS 108 is not applicable, as the Chief Operating Decision Maker reviews business performance at the overall company level as one segment.

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