Dhanlaxmi Fabrics Q2 profit followed Rs 1.0424 crore gain

Dhanlaxmi Fabrics Limited reported standalone profit after tax of Rs 95.72 lakh for the quarter ended September 30, 2026, after a Rs 1.0424 crore exceptional item offset an Rs 8.52 lakh loss before exceptional items and tax. The company said sales fell mainly following the permanent closure of its Dombivli textile-processing unit.

Why did Dhanlaxmi Fabrics report a September-quarter profit?

Dhanlaxmi Fabrics reported a profit because its Rs 1.0424 crore exceptional item exceeded its Rs 8.52 lakh loss before exceptional items and tax for the quarter ended September 30, 2026. Standalone profit before tax was Rs 95.72 lakh, and, with no current or deferred tax expense disclosed for the quarter, profit after tax was also Rs 95.72 lakh.

The exceptional item comprised a building-repairs maintenance reimbursement invoice to Western Chlorides & Chemicals Private Limited, a loss on sale of a motor car, and capital gain or loss on sale of shares. Dhanlaxmi Fabrics did not disclose the monetary contribution of each component to the Rs 1.0424 crore item, so the filing does not establish which transaction was the principal driver.

The latest result differed from both comparison quarters. Dhanlaxmi Fabrics had a Rs 34.87 lakh standalone loss after tax in the quarter ended June 30, 2026, with no exceptional item, while the September 2025 quarter recorded a Rs 120.06 lakh loss after tax despite an Rs 8.22 lakh exceptional item and a Rs 3.52 lakh deferred-tax credit.

How did the Dombivli closure affect Dhanlaxmi Fabrics sales?

Dhanlaxmi Fabrics said sales were reduced mainly by the permanent and complete closure of its textile-processing unit at Dombivli. Standalone revenue from operations declined to Rs 3.9492 crore in the September 2026 quarter from Rs 5.0269 crore in the June 2026 quarter, a sequential decrease of Rs 1.0777 crore.

The year-on-year comparison moved in the other direction: revenue from operations was Rs 3.9492 crore in the latest quarter, against Rs 3.4388 crore in the quarter ended September 30, 2025. Total revenue, including other income, was Rs 4.1494 crore in September 2026, compared with Rs 5.2320 crore in June 2026 and Rs 3.6300 crore a year earlier.

Costs fell from the preceding quarter but did not eliminate the pre-exceptional loss. Material consumed was Rs 2.6926 crore against Rs 3.0158 crore in June, purchases of stock in trade were Rs 28.73 lakh against Rs 1.0946 crore, and other expenses were Rs 81.79 lakh against Rs 1.2375 crore. Total expenses decreased to Rs 4.2346 crore from Rs 5.5107 crore.

Against the September 2025 quarter, material consumed rose from Rs 2.0648 crore to Rs 2.6926 crore, while employee-benefit expense declined from Rs 58.47 lakh to Rs 49.73 lakh. The resulting Rs 8.52 lakh pre-exceptional loss was narrower than the Rs 1.3180 crore loss a year earlier. Dhanlaxmi Fabrics identifies textile fabric as its single business segment.

What do Dhanlaxmi Fabrics’ six-month results show?

Dhanlaxmi Fabrics posted standalone profit after tax of Rs 60.85 lakh for the six months ended September 30, 2026, compared with a Rs 1.3187 crore loss in the corresponding six months ended September 30, 2025. Revenue from operations increased to Rs 8.9761 crore from Rs 5.2139 crore across those periods.

The six-month result still included the Rs 1.0424 crore exceptional item, against Rs 32.26 lakh a year earlier. Before exceptional items and tax, Dhanlaxmi Fabrics reported a Rs 43.39 lakh loss, narrower than the Rs 1.7416 crore loss in the prior-year period. Profit before tax was Rs 60.85 lakh, with no tax expense reported.

Total revenue for the six months was Rs 9.3114 crore, up from Rs 6.1699 crore a year earlier, while total expenses rose to Rs 9.1108 crore from Rs 7.9115 crore. The comparison shows that revenue increased by Rs 3.1415 crore, exceeding the Rs 1.1993 crore increase in expenses, although the disclosed exceptional item remained material to reported profit.

The filing describes the September-quarter numbers as balancing figures between the six-month results and the published first-quarter results for the current financial year. The Audit Committee reviewed, and the board approved, the standalone results on November 14, 2026; the limited-review report is dated the same day.

How did standalone cash flows change in the first half?

Dhanlaxmi Fabrics reported net cash generated from operating activities of Rs 1.6919 crore for the six months ended September 30, 2026, compared with net cash used in operations of Rs 3.8255 crore in the corresponding 2025 period. The latest period included Rs 1.1799 crore from trade and other receivables and Rs 4.5786 crore from changes in capital work in progress.

Those operating cash movements were partly offset by Rs 2.4788 crore related to trade and other payables, Rs 49.11 lakh for inventories, and Rs 94.92 lakh for other current assets. Operating profit before working-capital changes was Rs 11.01 lakh in the latest half-year, compared with a Rs 2.1361 crore loss in the prior-year period.

Investing activities used Rs 4.7833 crore in the latest six months, compared with Rs 3.5020 crore generated a year earlier. The latest investing outflow included Rs 5.4575 crore under other financial assets, partly offset by Rs 25.14 lakh from sale of fixed assets, Rs 22.26 lakh gain on sale of shares and Rs 19.08 lakh of rental income from investment property.

Financing activities generated Rs 2.5530 crore, including Rs 2.3728 crore of proceeds from short-term loans and Rs 20.52 lakh of interest received. Cash and cash equivalents ended the period at Rs 7.05 lakh, down from Rs 60.89 lakh at the start of the financial year, after a net decrease of Rs 53.84 lakh.

How did consolidated Q2 performance compare with standalone results?

Dhanlaxmi Fabrics reported consolidated profit after tax of Rs 46.97 lakh for the quarter ended September 30, 2026, below its standalone profit of Rs 95.72 lakh. Consolidated revenue from operations was Rs 3.9617 crore, slightly above standalone revenue of Rs 3.9492 crore, while the consolidated loss before exceptional items and tax was Rs 69.27 lakh.

The consolidated exceptional item was Rs 1.1624 crore, compared with the standalone Rs 1.0424 crore, producing consolidated profit before tax and after tax of Rs 46.97 lakh. For the six months ended September 30, 2026, consolidated profit after tax was Rs 15.73 lakh, compared with standalone profit after tax of Rs 60.85 lakh.

The consolidated statements include Dhanesh Fabrics Private Limited and Western Chlorides & Chemicals Private Limited. The auditor stated that corresponding consolidated figures for the quarter and six months ended September 2025 had been approved by the board but had not been subject to review.

Conclusion

Dhanlaxmi Fabrics’ Rs 95.72 lakh standalone September-quarter profit resulted from a Rs 1.0424 crore exceptional item, while the underlying measure disclosed in the results was an Rs 8.52 lakh loss before exceptional items and tax. Revenue declined sequentially after the Dombivli textile-processing unit’s permanent closure, although the pre-exceptional loss narrowed from both June 2026 and September 2025.

The next reported results will show the performance of Dhanlaxmi Fabrics’ single textile-fabric segment following the Dombivli closure and whether exceptional items recur. The company also disclosed that RHAD & Co. resigned as statutory auditor of Dhanlaxmi Fabrics and material subsidiary Dhanesh Fabrics Private Limited with effect from November 14, 2026, while stating that no concerns about management or material reason for the resignation were raised.