Shiva Mills swings to profit as debt hits zero
The textile firm posted a net profit of ₹1.41 cr for the March quarter, marking a turnaround from losses in the prior year and preceding quarter.
What's new
- March quarter profit of ₹1.41 cr reverses a ₹0.77 cr loss from a year ago.
- Full-year net loss narrowed to ₹0.09 cr from ₹3.81 cr in the prior year.
- Company ended the year with zero borrowings, down from ₹9.88 cr.
Why this matters
The shift to profitability is driven by lower input costs and tighter inventory management rather than top-line growth. Eliminating debt is a clean move for a nano-cap firm, though revenue contraction remains a hurdle.
What we're watching
- Whether the company can sustain profitability as revenue declines.
- Shareholder approval for the appointment of CSR & Co. as auditors.
- Future plans for capital allocation now that debt is cleared.
The full read
Shiva Mills posted a net profit of ₹1.41 crore for the March quarter, a reversal from the ₹0.77 crore loss reported in the same period last year. This turnaround, aided by lower input costs and better inventory management, helped narrow the full-year net loss to ₹0.09 crore from ₹3.81 crore. While the bottom line improved, revenue for the year fell to ₹139.14 crore from ₹169.31 crore. The company also cleared its balance sheet, ending the year with zero borrowings compared to ₹9.88 crore a year ago. The board has proposed appointing CSR & Co. as statutory auditors for a five-year term, pending shareholder approval. No dividend was recommended. The results show a company prioritizing cost control and debt reduction over top-line expansion.
Questions answered
- How did Shiva Mills achieve a profit this quarter?
- The company benefited from lower input costs and improved inventory management. These factors helped reverse a loss of ₹0.77 crore from the same period last year.
- What is the status of the company's debt?
- Shiva Mills is now debt-free. It ended the year with zero borrowings, compared to ₹9.88 crore in the previous year.
- Did the company declare a dividend?
- No, the board did not recommend a dividend for the financial year.
- What was the full-year revenue performance?
- Revenue for the full financial year 2025-26 declined to ₹139.14 crore from ₹169.31 crore in the prior year.