Hisar Spinning Mills' annual profit rises 13%, but Q4 tumbles 36%
A strong first nine months masked a sharp fourth-quarter profit collapse for the nano-cap textile maker. The stock trades at a market cap of ₹17 crore.
— 1 earlier story on Hisar Spinning Mills Ltd. →What's new
- FY26 net profit rose 13% to ₹3.31 crore, but Q4 profit fell 36% to ₹66.28 lakhs.
- Annual revenue was flat at ₹44.11 crore; no dividend was declared.
- The Q4 decline was driven by higher material and power costs.
Why this matters
For a company with a market cap of just ₹17 crore, ₹3.31 crore in profit is meaningful. But the 36% Q4 profit drop signals the cost pressures that eroded margins in the final quarter may persist. The flat revenue suggests limited pricing power to pass those costs on.
What we're watching
- Whether material and power costs ease in Q1 FY27.
- Management's commentary on pricing and demand trends.
- Any shift in the company's ₹17 crore market valuation.
The full read
Hisar Spinning Mills is a ₹17-crore market-cap textile company that just earned ₹3.31 crore in profit. On the face of it, a 13% annual profit increase on flat revenue of ₹44.11 crore looks solid. But the story flipped in the final quarter. Q4 net profit fell 36% to ₹66.28 lakhs as material and power costs spiked. The full-year number is a composite of a good first nine months and a bad fourth quarter. For a company this small, cost inflation in core inputs is hard to absorb. No dividend was declared. The market has already priced in the annual result; the open question is whether Q4's margin hit is a one-quarter event or the new trend.
Questions answered
- How did full-year and quarterly profits compare?
- Full-year net profit grew 13% to ₹3.31 crore. However, fourth-quarter profit plunged 36% to ₹66.28 lakhs, indicating a sharp slowdown in the final three months.
- What caused the Q4 profit decline?
- The filing attributes the 36% drop in quarterly profit to higher material and power costs, which weighed on margins despite steady annual revenue.
- What is the company's current valuation?
- Hisar Spinning Mills has a market capitalization of ₹17 crore, making the ₹3.31 crore annual profit a substantial portion of its total market value.
- Did the company return cash to shareholders?
- No. The board did not recommend a dividend for FY26, retaining all earnings.
Story so far
All notes on HISARSP →- 29 May 2026 · 10:00 PM IST Hisar Spinning Mills' annual profit rises 13%, but Q4 tumbles 36%
- 1d ago Hisar Spinning's full-year profit rose. Then Q4 profit fell 36%.