Dhanlaxmi Fabrics Limited Q2 FY27 Profit Is ₹0.5 Crore

Dhanlaxmi Fabrics Limited reported Q2 FY27 consolidated revenue from operations of ₹4.0 crore and a net profit of ₹0.5 crore for the quarter ended September 30, 2026, compared with a ₹1.3 crore loss a year earlier. The Board approved the unaudited results on November 14, 2026, when statutory auditor RHAD & Co also resigned.

What did Dhanlaxmi Fabrics report for Q2 FY27?

Dhanlaxmi Fabrics reported consolidated revenue from operations of ₹4.0 crore in Q2 FY27, up 5.3% from ₹3.8 crore in Q2 FY26. Total income was ₹4.2 crore, against ₹4.1 crore in the year-earlier quarter, including other income of ₹0.2 crore.

The company posted a consolidated net profit of ₹0.5 crore, reversing a net loss of ₹1.3 crore in Q2 FY26. On a sequential basis, revenue declined from ₹5.1 crore in Q1 FY27, while the company moved from a net loss of ₹0.3 crore in the preceding quarter to a profit.

The reported profit was supported by exceptional items of ₹1.2 crore. Before exceptional items and tax, Dhanlaxmi Fabrics recorded a loss of ₹0.7 crore, compared with a loss of ₹1.4 crore in Q2 FY26 and a loss of ₹0.3 crore in Q1 FY27. This distinction is important because the quarterly profit includes the exceptional gain.

How did the Board approve the Q2 FY27 results?

Dhanlaxmi Fabrics' Board of Directors considered and approved the unaudited standalone and consolidated financial results for the quarter and six months ended September 30, 2026, at its meeting on November 14, 2026. The results had been reviewed through the company's Audit Committee process before Board approval.

The company had earlier indicated that its Board would consider the September-quarter results. The meeting was initially scheduled for November 13, 2026, and subsequent information indicated that it was rescheduled to November 14. The final approval therefore took place on November 14.

On a standalone basis, Dhanlaxmi Fabrics reported revenue of ₹3.95 crore and net profit of ₹0.96 crore for Q2 FY27. The standalone profit was aided by exceptional gains of ₹1.04 crore, while the standalone operating result was a loss of ₹0.09 crore.

Why did RHAD & Co resign as statutory auditor?

RHAD & Co resigned as statutory auditor of Dhanlaxmi Fabrics and its material subsidiary, Dhanesh Fabrics Private Limited, effective November 14, 2026. The company disclosed that the resignation applied to both the parent entity and the material subsidiary.

The information provided with the announcement stated that no material concerns were raised by the outgoing auditor. The disclosure does not provide further detail on the reason for the resignation or name a replacement auditor.

An auditor resignation is a corporate-governance disclosure that investors typically monitor because statutory auditors review a company's financial reporting. In this case, the company has specifically stated that no material concerns were reported by RHAD & Co in connection with its resignation.

What do the six-month figures show for Dhanlaxmi Fabrics?

Dhanlaxmi Fabrics reported standalone profit of ₹0.61 crore for the six months ended September 30, 2026, compared with a standalone loss of ₹1.42 crore in the corresponding prior-year period. The Q2 standalone profit of ₹0.96 crore compares with a loss of ₹0.35 crore in Q2 FY26.

At the consolidated level, the company reported profit of ₹0.16 crore for the first six months of FY27, against a loss of ₹1.57 crore in the corresponding period of FY26. Consolidated profit for Q2 FY27 was stated at ₹0.47 crore in the detailed results, which rounds to the ₹0.5 crore figure reported in the quarterly summary.

The data indicates a return to reported profitability from the losses recorded a year earlier. However, the quarterly consolidated result also shows that exceptional items had a material role in moving profit before tax from a loss of ₹0.7 crore to profit before tax of ₹0.5 crore.

How could the results and auditor change matter to investors?

For investors, the immediate financial development is the shift to consolidated quarterly profit alongside modest year-on-year revenue growth. Revenue rose by ₹0.2 crore from Q2 FY26, while total income increased by ₹0.1 crore. The reported net result improved by ₹1.8 crore from the prior-year quarter's loss.

The sequential comparison is more mixed. Consolidated revenue declined by ₹1.1 crore from Q1 FY27, though the company returned to net profit from a ₹0.3 crore loss. Because exceptional items amounted to ₹1.2 crore in Q2, investors assessing operating performance can separately examine the pre-exceptional loss of ₹0.7 crore.

The resignation of RHAD & Co creates an additional disclosure point for shareholders to track. Dhanlaxmi Fabrics has said that no material concerns were raised, but the source material does not disclose a successor auditor or a timetable for the appointment process.

Conclusion

Dhanlaxmi Fabrics returned to reported consolidated profitability in Q2 FY27, posting revenue of ₹4.0 crore and net profit of ₹0.5 crore after recording losses in both Q1 FY27 and Q2 FY26. The improvement was supported by ₹1.2 crore of exceptional items, while the underlying result before exceptional items and tax remained negative.

Investors will next watch for the company's statutory auditor appointment following RHAD & Co's resignation effective November 14, 2026, and for future quarterly results that clarify revenue trends and the contribution of exceptional items to profitability.