Lakshmi Mills Ltd Quarterly Results Q1 FY26

Lakshmi Mills Company Ltd, one of India’s venerable textile manufacturers, recently unveiled its Q1 FY26 financial performance. The results shed light on how the company is managing operations amid cost pressures and demand shifts. This article presents a revised, reader-friendly take on the key numbers, trends, and outlook for Lakshmi Mills.

Lakshmi Mills Q1 FY26 financial performance

In Q1 FY26 (June 2025 quarter), Lakshmi Mills reported total income of ₹55.45 crore, representing a decline of about 14.8% year-on-year (compared with Q1 FY25). INDmoney+2Moneycontrol+2

The company recorded a net loss of ₹22.03 crore in this quarter, in contrast to a smaller loss in the same quarter last year. Equity Right+3INDmoney+3INDmoney+3

On the operating front, Lakshmi Mills posted an operating profit (EBIT) of approximately ₹2.67 crore, yielding an operating margin of ~3.74% (before factoring in finance costs and taxes). Equity Right

The earnings per share (EPS) in Q1 FY26 stood at –₹9.49, reflecting the net loss per share. INDmoney+2Moneycontrol+2

Taken together, the results show that while the firm is generating operational profit, significant costs (interest, depreciation, etc.) continue to erode the bottom line.

Compared with the preceding quarter (Q4 FY25), Lakshmi Mills’ revenues fell from ₹71.4 crore to ₹55.45 crore, implying a sequential drop of ~22.3%. BlinkX+2INDmoney+2

Despite this, the company was able to keep its operations profitable before interest and taxes, signifying that the core textile business could withstand market pressures to some degree. However, the net loss widened due to finance costs, depreciation, and other expenses.

The downward shift in net profit underscores the impact of rising input costs (especially cotton, synthetic fibers), energy prices, and logistical expenses — challenges that are common across the textile industry in the current environment.

For Q1 FY26, Lakshmi Mills did not declare any dividend. (No public announcement for a dividend was found in the filings or media coverage.)

This decision likely stems from the net loss incurred during the quarter. In earlier years, the company has declared dividends—e.g., ₹9 per share in past fiscal years—but no payout was indicated this quarter.

In the aftermath of the Q1 FY26 results, Lakshmi Mills’ share price reflected the market’s cautious outlook. As of September 22, 2025, the stock was quoted at ₹8,660, which was down about 1.03% on that trading day.

Over the longer horizon, the stock has delivered a 1-year return of ~27.85%, indicating some resilience despite recent headwinds.

Observers note that investor sentiment has been influenced by the company’s ability to generate operational profit despite net losses, and by expectations of cost control and strategic repositioning. Market reaction tends to factor in upcoming quarters, especially whether Lakshmi Mills can rein in non-operational costs or improve scale.

Lakshmi Mills operates in segments including:

• Cotton and blended yarn manufacturing
• Grey and processed cloth / fabrics
• Cloth processing (through its subsidiary, United Bleachers)
• Export of yarns and fabrics to markets such as the UK, Germany, Italy, Bangladesh, and Japan

In Q1 FY26, the textile and fabric segment continued to drive the bulk of revenue, although margin pressures persisted. The company’s strategy emphasises:

• Cost discipline and procurement efficiency (e.g. sourcing, energy conservation)
• Product innovation and differentiation, especially in value-added fabrics
• Geographical market expansion and export growth
• Sustainability and green manufacturing, which may help with competitive positioning

Management has flagged that improving leverage, scaling operations, and rationalising non-operational expenses will be crucial for returning to sustained profitability.

Notes:

• The Q4 FY25 net loss of approx. ₹0.66 crore is inferred from reports and may not precisely match audited numbers.
• Q1 FY25 values (for income, profit) are not consistently available in the cited sources, but the year-on-year comparisons reported in media suggest a higher revenue base then.

Lakshmi Mills’ Q1 FY26 results depict a company in transition: revenue has declined sharply compared to the previous quarter, but the firm still managed to generate a positive operating profit. However, non-operational costs dragged the final result into a significant loss.

The key challenges for Lakshmi Mills in the near term will include controlling input cost inflation, managing depreciation/interest burdens, and scaling up volumes to absorb fixed costs. On the positive side, the firm’s underlying operations continue to show resilience. Investors and stakeholders will closely watch upcoming quarters to gauge whether the company can convert operational gains into full profitability.