What drove the decline in net profit?

The filing discloses a net profit of ₹3.12 crore, down 14% from ₹3.63 crore. It does not break down the causes, but notes the inclusion of exceptional items in the year's numbers.

Why is there no dividend?

The board recommended no dividend for FY26. This follows the standard practice of retaining earnings when profitability is under pressure.

What is the preference share redemption?

The board approved redeeming ₹2 crore of preference shares. For a company of this size, it is a minor balance-sheet transaction, but it does use up cash.

Were these results expected?

Yes. The board meeting notice had already flagged the non-recommendation of a dividend and the preference share redemption, leaving the core financial performance as the only new detail.

Earnings · Textile · Micro cap

Suryalakshmi's profit slips 14% as preference shares eat into earnings

Audited FY26 results confirm a profitability decline. The company is skipping its dividend and redeeming ₹2 crore in preference shares.

— 3 earlier stories on Suryalakshmi Cotton Mills Ltd. →

SURYALAXMI By Tipsheet Editorial 25 May 2026 · 5:43 PM IST Verify on BSE · NSE

Mkt cap₹118 cr

P/E37.73×

ROE1.35%

Debt / eq.1.05

₹3.12 cr Net profit for FY26, down from ₹3.63 crore.

What's new

Suryalakshmi's net profit fell to ₹3.12 crore in FY26 from ₹3.63 crore.
The board approved redemption of ₹2 crore in preference shares.
No dividend recommended for the year.

Why this matters

The results confirm a profitability squeeze. The ₹2 crore preference-share redemption is new but routine for a nano-cap. The bigger signal is the dividend skip, which keeps cash in the business at a time when earnings are contracting.

What we're watching

The cash-flow impact of the ₹2 crore preference redemption.
Whether the profitability decline is driven by input costs or margin compression.
The company's stated use of retained cash without a dividend.

The full read

Suryalakshmi Cotton Mills' audited FY26 results confirm a 14% drop in net profit to ₹3.12 crore from ₹3.63 crore. The board included exceptional items in the calculation but did not detail them. It approved redeeming ₹2 crore in preference shares and recommended no dividend. The preference-share move and dividend skip were pre-announced, making the filing largely confirmatory. For a nano-cap, the main takeaway is the cash management: the company is paying off a small preference obligation while hoarding cash instead of distributing it to equity holders. The profitability decline is the real story. The ₹2 crore redemption is a footnote.

Questions answered

What drove the decline in net profit?: The filing discloses a net profit of ₹3.12 crore, down 14% from ₹3.63 crore. It does not break down the causes, but notes the inclusion of exceptional items in the year's numbers.
Why is there no dividend?: The board recommended no dividend for FY26. This follows the standard practice of retaining earnings when profitability is under pressure.
What is the preference share redemption?: The board approved redeeming ₹2 crore of preference shares. For a company of this size, it is a minor balance-sheet transaction, but it does use up cash.
Were these results expected?: Yes. The board meeting notice had already flagged the non-recommendation of a dividend and the preference share redemption, leaving the core financial performance as the only new detail.

Mentioned: Suryalakshmi Cotton Mills · ₹2 crore preference shares · FY26

Primary source BSE · NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.

Story so far

All notes on SURYALAXMI →

25 May 2026 · 5:43 PM IST Suryalakshmi's profit slips 14% as preference shares eat into earnings
54d ago Suryalakshmi Cotton posts FY26 results, skips dividend again
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