Ashnoor Textile Mills FY26 profit drops 47% as US tariff disruption hits exports
Ashnoor Textile Mills reported a 46.85% decline in FY26 net profit after tax, while operating income fell 36.34% to Rs 113.61 crore. The company cited tariff-related disruption to exports to the US, its largest export market.
What happened
Ashnoor Textile Mills reported a 46.85% FY26 PAT decline and a 36.34% fall in operating income to Rs 113.61 crore, citing tariff-related disruption to exports
Key facts
- Net profit after tax declined 46.85%
- Operating income declined 36.34% to Rs 113.61 crore (US$12.02 million)
Why this matters
The tariff-driven US export setback underscores the strategic need for market diversification, alternative sourcing structures, or partnerships that reduce single-market risk.
What to watch
- US tariff policy changes, exemptions, implementation timelines, and bilateral trade negotiations.
- Quarterly US export volumes, order-book commentary, cancellations, and customer inventory levels.
- Revenue mix between the US, other export markets, and domestic sales.
- Operating margin trend, capacity utilization, and management commentary on price pass-through.
- Receivable days, inventory levels, export incentive receipts, and operating cash-flow performance.
- Cotton, yarn, energy, freight, and currency movements that could offset or amplify tariff pressure.
- Prioritize retention of major US accounts through shared tariff-cost arrangements, revised delivery schedules, and selective pricing actions.
- Accelerate customer diversification across Europe, Middle East, domestic and other lower-tariff export markets.
- Reduce dependence on low-margin US orders by emphasizing higher-value textile products and customers with stronger pricing power.
- Tighten working-capital controls, particularly receivables and inventory tied to delayed export shipments.
- Adjust production planning and discretionary costs to protect cash flow during lower export utilization.