Simplex Mills Company Limited Reports Wider Annual Loss in FY26; Board Approves Audited Financial Results

Simplex Mills Company Limited's Board of Directors convened on 19th May, 2026, and approved the audited financial results for the quarter and financial year ended 31st March, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee prior to board approval and are prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013.

Financial Performance: Annual Results

The company's full-year performance reflected a deterioration in both revenue and profitability. Total income for FY26 stood at ₹75.94 lakhs, declining from ₹78.56 lakhs in FY25. Revenue from operations fell to ₹12.65 lakhs from ₹15.90 lakhs, while other income rose marginally to ₹63.29 lakhs from ₹62.66 lakhs. Total expenses increased to ₹93.14 lakhs from ₹81.73 lakhs, driven primarily by higher finance costs and other expenses. As a result, the net loss for FY26 widened to ₹17.20 lakhs compared to ₹3.17 lakhs in FY25.

The following table summarises the key annual financial metrics:

Metric: FY26 (₹ in Lakhs) FY25 (₹ in Lakhs) Revenue from Operations: 12.65 15.90 Other Income: 63.29 62.66 Total Income: 75.94 78.56 Total Expenses: 93.14 81.73 Net Loss: (17.20) (3.17) Basic & Diluted EPS (₹): (57.31) (10.57)

Quarterly Performance: Q4 FY26

For the quarter ended 31st March, 2026, the company reported nil revenue from operations, compared to ₹3.89 lakhs in Q4 FY25. Total income for the quarter stood at ₹15.59 lakhs, against ₹19.52 lakhs in the corresponding quarter of the previous year. Total expenses for Q4 FY26 rose to ₹26.88 lakhs from ₹21.28 lakhs in Q4 FY25, resulting in a quarterly net loss of ₹11.29 lakhs, widening from ₹1.76 lakhs in Q4 FY25. The basic and diluted loss per share (face value ₹1,000 each) for Q4 FY26 stood at ₹37.62, compared to ₹5.87 in Q4 FY25.

Metric: Q4 FY26 Q3 FY26 Q4 FY25 Revenue from Operations (₹ Lakhs): - 6.35 3.89 Total Income (₹ Lakhs): 15.59 21.97 19.52 Total Expenses (₹ Lakhs): 26.88 23.78 21.28 Net Loss (₹ Lakhs): (11.29) (1.81) (1.76) EPS (₹): (37.62) (6.04) (5.87)

Balance Sheet and Cash Position

As at 31st March, 2026, total assets stood at ₹684.58 lakhs, compared to ₹709.26 lakhs as at 31st March, 2025. A notable development in the balance sheet was the reclassification of assets amounting to ₹395.64 lakhs as Assets Held for Sale, which contributed to a sharp decline in non-current assets from ₹397.42 lakhs to ₹0.94 lakhs, while total current assets rose to ₹683.64 lakhs from ₹311.84 lakhs. Total equity remained negative at ₹(365.02) lakhs, compared to ₹(347.83) lakhs in the prior year, reflecting the accumulated losses. Non-current borrowings increased to ₹300.15 lakhs from ₹275.21 lakhs. Cash and cash equivalents at year-end stood at ₹8.06 lakhs, down from ₹10.20 lakhs at the start of the year.

Auditor's Report and Key Observations

Statutory auditors Khandelwal and Mehta LLP issued an unmodified opinion on the audited financial results for the quarter and year ended 31st March, 2026. However, the auditors included an Emphasis of Matter, drawing attention to loans and advances recoverable from a company whose net worth is eroded. The management has represented that, based on projections submitted, these advances are considered recoverable. The auditors noted that their opinion is not modified in respect of this matter.

The company also noted that the Government of India has notified the implementation of the Code on Wages, 2019 and the Code on Social Security, 2020, with effect from 21st November, 2025, and that the impact of related rules will be evaluated and accounted for as and when notified.

Annual General Meeting

The Board also announced that the 28th Annual General Meeting of the company will be held on Tuesday, 4th August, 2026, through the permissible mode. The company operates in a single reportable segment, namely Textile, and the financial results are available on the company's website at https://simplex-group.com/ .

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