Shiva Mills turns profitable in Q4 and clears all debt
The textile firm swung to a ₹1.41 cr profit in the March quarter, helping narrow its full-year loss to ₹8.95 lakhs while eliminating its entire debt load.
— 2 earlier stories on Shiva Mills Ltd. →What's new
- Q4 net profit reached ₹1.41 cr, reversing a ₹0.77 cr loss from the year prior.
- Full-year net loss narrowed to ₹8.95 lakhs from ₹3.81 cr.
- Revenue fell 17.8% to ₹139.14 cr for the fiscal year.
Why this matters
For a nano-cap with a ₹55 cr market value, reaching debt-free status is a meaningful shift in risk profile. While top-line pressure remains, the ability to generate profit despite lower revenue suggests the company is successfully managing its cost base.
What we're watching
- Whether the company can return to revenue growth in FY27.
- Shareholder reaction to the proposed appointment of M/s CSR & Co. as auditors.
- Sustainability of the improved inventory management.
The full read
Shiva Mills ended the fiscal year with a clean balance sheet, clearing its ₹9.88 crore debt entirely. This shift coincides with a return to profitability in the March quarter, where the company posted a net profit of ₹1.41 crore against a ₹0.77 crore loss in the same period last year. While full-year revenue dropped 17.8% to ₹139.14 crore, the company successfully narrowed its annual net loss to ₹8.95 lakhs from ₹3.81 crore. The turnaround is attributed to lower input costs and tighter inventory control. For a company with a market capitalization of ₹55 crore, the move to zero debt is the most significant development. The board has opted against a dividend, focusing instead on the transition to new auditors, M/s CSR & Co., for a five-year term starting in April 2026. The next test is whether the company can stabilize its top line after a year of contraction.
Questions answered
- How did Shiva Mills manage to turn a profit despite falling revenue?
- The company benefited from lower raw material costs and improved inventory management. These factors allowed it to post a net profit of ₹1.41 cr for the March quarter.
- What is the status of the company's debt?
- Shiva Mills is now debt-free. It reduced its borrowings from ₹9.88 cr at the end of the previous fiscal year to zero.
- Did the company announce a dividend?
- No. The board did not recommend a dividend for the year.
- Who will be the new statutory auditor?
- The board proposed appointing M/s CSR & Co. for a five-year term beginning April 1, 2026, pending shareholder approval.
Story so far
All notes on SHIVAMILLS →- 27 May 2026 · 5:50 PM IST Shiva Mills turns profitable in Q4 and clears all debt
- today Shiva Mills clears all debt as Q4 profit marks a turnaround
- today Shiva Mills swings to profit as debt hits zero