Eastern Silk Industries Limited posts Rs 78.38 lakh profit

Eastern Silk Industries Limited reported a standalone net profit of Rs 78.38 lakh for the quarter ended September 30, 2026, reversing losses in both the June 2026 and September 2025 quarters. Eastern Silk Industries Ltd’s revenue from operations rose to Rs 7.57 crore, but its first half remained marginally loss-making and operating cash outflow reached Rs 8.99 crore.

How did Eastern Silk Industries Ltd return to profit in September 2026?

Eastern Silk Industries Ltd returned to profit because total expenses fell to Rs 7.06 crore in the September 2026 quarter, below total income of Rs 7.84 crore, resulting in profit before tax and net profit of Rs 78.38 lakh. The company reported no current-tax or deferred-tax charge for the quarter, leaving pre-tax profit equal to reported net profit. Basic and diluted earnings per share were Rs 1.57, compared with losses per share of Rs 1.60 in June 2026 and Rs 0.67 in September 2025.

The September result changed from a net loss of Rs 80.02 lakh in the June 2026 quarter and a net loss of Rs 33.50 lakh in the September 2025 quarter. Total income declined from Rs 8.03 crore in June, as other income fell to Rs 26.87 lakh from Rs 60.54 lakh, but the decline in expenses was larger. Total expenses were Rs 9.10 crore in June and Rs 6.48 crore in the prior-year quarter, compared with Rs 7.06 crore in September 2026.

Revenue from operations was Rs 7.57 crore in the September quarter, up from Rs 7.43 crore in June and Rs 5.01 crore a year earlier. The filing was approved by the board on November 14, 2026, and the statutory auditors issued an unmodified limited-review opinion on the unaudited standalone results for the quarter and half year ended September 30, 2026.

What changed in Eastern Silk Industries Ltd’s costs and revenue?

Eastern Silk Industries Ltd’s September-quarter operating revenue increased by Rs 2.56 crore from the September 2025 quarter, while raw-material consumption decreased to Rs 2.02 crore from Rs 3.90 crore. Other expenses also declined to Rs 2.15 crore from Rs 2.73 crore in the prior-year quarter. Employee-benefit expense moved the other way, rising to Rs 4.04 crore from Rs 3.42 crore.

Inventory movement was a major difference between the two most recent quarters. The September 2026 result included a Rs 1.61 crore decrease in inventories of finished goods, work-in-progress and traded goods, whereas the June 2026 quarter recorded a Rs 55.22 lakh increase in those inventories. This line was a Rs 4.15 crore decrease in the September 2025 quarter, when raw-material consumption and total expenses were both higher than in the latest quarter.

For the six months ended September 30, 2026, revenue from operations rose to Rs 15.00 crore from Rs 11.74 crore in the corresponding 2025 period. Eastern Silk Industries Ltd reported one operating segment under Indian Accounting Standard 108, covering silk yarn, fabrics and made-ups, home furnishings, fashion fabrics, handloom fabrics, double-width fabrics, scarves, laces, belts and embroidered fabrics. The filing therefore does not provide revenue or profit split by product category.

Why did Eastern Silk Industries Ltd remain loss-making for the half year?

Eastern Silk Industries Ltd recorded a net loss of Rs 1.64 lakh for the half year ended September 30, 2026 because the Rs 78.38 lakh September-quarter profit did not fully offset the Rs 80.02 lakh June-quarter loss. The six-month pre-tax loss was Rs 28.55 lakh, which was reduced by a deferred-tax credit of Rs 26.91 lakh. The corresponding half-year net loss was Rs 52 lakh, following a pre-tax loss of Rs 88.13 lakh and a deferred-tax credit of Rs 36.13 lakh.

Total income for the latest half year was Rs 15.88 crore, compared with Rs 12.97 crore a year earlier, while total expenses rose to Rs 16.16 crore from Rs 13.85 crore. Other income declined to Rs 87.41 lakh from Rs 1.23 crore, and depreciation and amortisation fell to Rs 62.28 lakh from Rs 76.65 lakh. Total comprehensive loss was Rs 2.04 lakh after an other comprehensive loss of Rs 40,000.

The half-year comparison shows an improvement in reported loss despite higher expenses, because operating revenue increased by Rs 3.26 crore and the pre-tax loss narrowed by Rs 59.58 lakh. The results do not disclose a numerical target, order outlook or management forecast for the second half of the financial year ending March 31, 2027.

What do Eastern Silk Industries Ltd’s cash flow and borrowings show?

Eastern Silk Industries Ltd reported net cash outflow from operating activities of Rs 8.99 crore for the six months ended September 30, 2026, compared with outflow of Rs 8.04 crore in the corresponding 2025 period. Operating profit before working-capital changes was Rs 22.85 lakh, compared with a loss of Rs 22.40 lakh a year earlier. Working-capital movements nevertheless outweighed that operating profit.

The latest operating cash outflow included Rs 49.63 lakh used by the inventory increase, Rs 64.99 lakh used by higher trade receivables, Rs 55.78 lakh associated with lower trade payables, and Rs 3.96 crore used by changes in other financial liabilities. The company also reported a Rs 3.76 crore decrease in other current and non-current liabilities. These movements produced total working-capital cash use of Rs 9.22 crore.

Financing cash flow included a Rs 9.20 crore increase in current and non-current borrowings, compared with a Rs 3.31 crore increase in the prior-year half. Non-current borrowings rose to Rs 85.57 crore at September 30, 2026, from Rs 76.37 crore at March 31, 2026. After investing cash outflow of Rs 19.48 lakh, cash and cash equivalents including other bank balances were Rs 4.74 crore at the period end, compared with Rs 4.73 crore at the start of the year.

How did Eastern Silk Industries Ltd’s balance sheet change by September 2026?

Eastern Silk Industries Ltd’s total assets increased to Rs 134.89 crore at September 30, 2026 from Rs 133.73 crore at March 31, 2026. Inventories rose to Rs 39.52 crore from Rs 39.02 crore, while trade receivables increased to Rs 3.62 crore from Rs 2.97 crore. Deferred-tax assets were Rs 42.68 crore, up from Rs 42.41 crore at the prior financial year-end.

Property, plant and equipment declined to Rs 32.78 crore from Rs 33.08 crore, while capital work-in-progress remained Rs 1.98 crore. Right-of-use assets decreased to Rs 2.27 crore from Rs 2.29 crore. The balance-sheet movement coincided with Rs 62.28 lakh of half-year depreciation and amortisation and investing expenditure of Rs 27.08 lakh on property, plant, equipment, capital work-in-progress and intangible assets, net of sale proceeds.

Equity share capital was unchanged at Rs 1 crore, and other equity declined to Rs 34.80 crore from Rs 34.83 crore. Current and non-current provisions combined increased to Rs 73.78 lakh from Rs 47.37 lakh. The filing presents no current borrowings at either September 30, 2026 or March 31, 2026, while non-current borrowings account for the disclosed increase in borrowings.

Conclusion

Eastern Silk Industries Ltd moved from losses in the June 2026 and September 2025 quarters to a Rs 78.38 lakh profit in the September 2026 quarter, supported by higher operating revenue and lower total expenses than in June. Yet the six-month result remained a Rs 1.64 lakh loss, and operating activities used Rs 8.99 crore of cash despite the quarterly profit.

The next financial result will show whether the September-quarter revenue level of Rs 7.57 crore and lower expense base can continue through the year ending March 31, 2027. The filing provides no formal management target, leaving working-capital movements, cash generation and non-current borrowings of Rs 85.57 crore as disclosed matters to watch.