Amarjothi Spinning Mills Reports Lower Profit and Revenue in FY26
Textile manufacturer records decline in earnings while assets grow on higher inventory and receivables
Amarjothi Spinning Mills Ltd. reported a decline in its financial performance for FY26, with consolidated net profit falling 16% year-on-year to Rs 9.52 crore (US $952,340) from Rs 11.35 crore (US $1.13 million) in FY25.
The company’s consolidated revenue from operations also declined to Rs 222.15 crore (US $22.22 million), compared with Rs 230.30 crore (US $23.03 million) in the previous financial year, reflecting softer business performance during the period.
Standalone Performance Also Declines
On a standalone basis, Amarjothi Spinning Mills reported a net profit of Rs 9.37 crore (US $936,970), down from Rs 11.04 crore (US $1.10 million) recorded in FY25.
Standalone revenue from operations declined to Rs 206.05 crore (US $20.60 million) from Rs 212.61 crore (US $21.26 million) a year earlier.
The Tirupur-based company manufactures melange, dyed and fancy yarns, catering to the hosiery, woven fabric and home textile sectors.
Raw Material Costs Remain Largest Expense
Material costs continued to account for the largest share of the company’s expenditure during FY26.
Consolidated material costs stood at Rs 146.41 crore (US $14.64 million), reflecting the significant contribution of raw material expenses to overall operating costs.
Assets Increase Despite Lower Earnings
Despite weaker profitability, Amarjothi Spinning Mills strengthened its balance sheet during the year.
Total consolidated assets increased to Rs 309.39 crore (US $30.94 million), compared with Rs 276.33 crore (US $27.63 million) in FY25.
The increase was primarily driven by:
- Inventory, which rose to Rs 118.89 crore (US $11.89 million).
- Trade receivables, which increased to Rs 49.09 crore (US $4.91 million).
Borrowings and Cash Flow
The company reported total borrowings of Rs 55.96 crore (US $5.60 million) at the end of FY26.
These comprised:
- Non-current borrowings: Rs 55.56 crore (US $5.56 million)
- Current borrowings: Rs 0.40 crore (US $40,150)
Operating cash generation also weakened during the year.
Net cash generated from operating activities declined to Rs 8.76 crore (US $876,050) from Rs 14.06 crore (US $1.41 million) in FY25.
As of March 31, consolidated cash and cash equivalents stood at Rs 4.75 crore (US $475,330).
Labour Code Impact Recognised
During FY26, the company recognised a past service cost of Rs 0.15 crore (US $14,710) arising from the financial impact of implementing India’s new Labour Codes.
While profitability and revenue softened during the financial year, Amarjothi Spinning Mills continued to maintain investments in working capital, with higher inventories and receivables contributing to an expanded asset base.
