Lakshmi Mills’ FY26 net loss widens to Rs 15.55 crore as tax expense rises
Lakshmi Mills Company Ltd posted an FY26 net loss of Rs 15.55 crore, versus a Rs 4.68 crore loss in FY25. The yarn and fabric manufacturer returned to pre-tax profitability, but a higher tax expense drove the wider reported loss.
What happened
Lakshmi Mills Company Ltd · Lakshmi Mills reported an FY26 net loss of Rs 15.55 crore, widening from Rs 4.68 crore in FY25, as tax expense surged despite the
Key facts
- FY26 net loss: Rs 15.55 crore (US$1.64 million)
- FY25 net loss: Rs 4.68 crore (US$0.49 million)
Why this matters
Lakshmi Mills’ pre-tax recovery may indicate underlying asset and operating value, though its reported loss expansion highlights earnings-quality and tax-liability diligence requirements.
What to watch
- Management explanation and financial-statement notes on the Rs 15.55 crore tax expense.
- Operating cash flow versus reported loss, including changes in receivables, inventory, and payables.
- Quarterly EBITDA/PBT trend excluding other income and exceptional items.
- Cotton and power-cost movements relative to yarn and fabric realizations.
- Debt levels, finance costs, liquidity disclosures, and any refinancing or promoter-support actions.
- Order-book commentary, export demand, capacity utilization, and customer concentration.
- Any further deferred-tax write-downs, tax disputes, or audit qualifications.
- Clarify whether the tax expense was current tax, deferred tax, prior-period adjustment, or a reversal of tax assets.
- Tighten working-capital controls, particularly receivables and yarn/fabric inventory, to preserve operating cash flow.
- Limit debt-funded capex until recurring post-tax profitability and interest-cover improvement are visible.
- Focus sales mix on higher-margin fabric, value-added yarn, and customers with stronger payment discipline.
- Review tax-asset recognition and communicate a credible timeline for realizing deferred-tax benefits.