Eurotex Industries books land gains as manufacturing remains dark
A Supreme Court ruling on electricity dues adds to the legal burden for a company whose factories have been closed since 2019.
What's new
- Annual net loss narrowed to ₹79.5 lakh, aided by ₹370.22 lakh in asset sale profits.
- Supreme Court ruled against Eurotex on a ₹305.54 lakh electricity duty claim.
- Net worth remains deeply negative at ₹2,693 lakh; manufacturing operations have been shuttered for seven years.
Why it matters
Eurotex is effectively a liquidation play. The company survives on asset sales, not operations, and the recent Supreme Court defeat complicates the recovery potential for shareholders.
What we're watching
- Success of management's review petition against the Supreme Court electricity duty order.
- Further land liquidations as the company attempts to address its negative net worth.
- Auditor commentary regarding the continued viability of the firm as a going concern.
The full read
Eurotex Industries remains in a state of suspended animation, with its manufacturing plants silent since 2019. The company's FY26 results show a net loss of ₹79.5 lakh, a figure softened only by the sale of land and plant assets that netted ₹370.22 lakh in profit. Revenue from operations has all but vanished, falling from ₹115.7 lakh to just ₹10.8 lakh over the last year. The firm's balance sheet tells the real story: net worth is a deeply negative ₹2,693 lakh. The situation grew more complex in March when the Supreme Court ruled against the company on an electricity duty claim of ₹305.54 lakh. Management intends to file a review petition and has yet to provision for the liability. With the company increasingly dependent on revaluing and selling off its remaining land to stave off collapse, the legal uncertainty represents a direct threat to the firm's remaining asset base.