Eastern Silk posts Rs 78.38 lakh September-quarter profit

Eastern Silk Industries Limited reported standalone net profit of Rs 78.38 lakh for the quarter ended September 30, 2026, after a Rs 80.02 lakh loss in June 2026 and a Rs 33.50 lakh loss a year earlier. Revenue from operations reached Rs 7.57 crore, while the half year ended September 30 remained marginally loss-making.

How did Eastern Silk return to profit in September 2026?

Eastern Silk returned to profit with Rs 78.38 lakh of profit before tax and net profit in the quarter ended September 30, 2026. This compares with a Rs 1.07 crore pre-tax loss and Rs 80.02 lakh net loss in the June 2026 quarter, and a Rs 63.41 lakh pre-tax loss and Rs 33.50 lakh net loss in the September 2025 quarter.

No current-tax or deferred-tax amount was recorded for the September 2026 quarter, leaving net profit equal to pre-tax profit at Rs 78.38 lakh. 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, based on equity shares with a Rs 2 face value.

The reported improvement coincided with total expenses falling to Rs 7.06 crore from Rs 9.10 crore in the preceding quarter, exceeding the Rs 19.18 lakh decline in total income to Rs 7.84 crore. The inventory line recorded a Rs 1.61 crore decrease in finished goods, work-in-progress and traded goods during September, against a Rs 55.22 lakh increase in June.

What changed in Eastern Silk's revenue and costs?

Eastern Silk's revenue from operations rose to Rs 7.57 crore in the September 2026 quarter from Rs 7.43 crore in June 2026 and Rs 5.01 crore in September 2025. Total income was Rs 7.84 crore, below Rs 8.03 crore in June because other income declined to Rs 26.87 lakh from Rs 60.54 lakh, but above Rs 5.84 crore a year earlier.

Raw-material consumption was Rs 2.02 crore, compared with Rs 1.74 crore in June 2026 and Rs 3.90 crore in September 2025. Employee-benefit expense increased to Rs 4.04 crore from Rs 3.93 crore sequentially and Rs 3.42 crore a year earlier, while other expenses fell to Rs 2.15 crore from Rs 2.49 crore and Rs 2.73 crore, respectively.

Eastern Silk reports one operating segment under Indian Accounting Standard 108, or Ind AS 108, so the filing provides no product-level revenue or profitability split. Its stated activities include silk yarn, fabrics and made-ups, home furnishings, fashion fabrics, handloom fabrics, double-width fabrics, scarves, laces, belts and embroidered fabrics.

What were Eastern Silk's first-half 2026 results?

Eastern Silk reported a Rs 1.64 lakh net loss for the half year ended September 30, 2026, narrowing from a Rs 52.00 lakh loss in the corresponding 2025 period. The Rs 78.38 lakh profit in the second quarter offset most, but not all, of the Rs 80.02 lakh first-quarter loss.

First-half revenue from operations rose to Rs 15.00 crore from Rs 11.74 crore a year earlier, while total income increased to Rs 15.88 crore from Rs 12.97 crore. Total expenses also rose, to Rs 16.16 crore from Rs 13.85 crore, resulting in a pre-tax loss of Rs 28.55 lakh versus a Rs 88.13 lakh pre-tax loss in the prior-year half.

The net-loss comparison includes deferred-tax credits of Rs 26.91 lakh in the latest half year and Rs 36.13 lakh in the prior-year half. Total comprehensive loss, including other comprehensive income, was Rs 2.04 lakh for the six months to September 2026, compared with Rs 52.92 lakh a year earlier.

What do Eastern Silk's cash flow and balance sheet show?

Eastern Silk reported a Rs 8.99 crore operating cash outflow for the six months ended September 30, 2026, compared with a Rs 8.04 crore outflow in the year-earlier period. Working-capital movements included a Rs 49.63 lakh inventory increase, a Rs 64.99 lakh increase in trade receivables and a Rs 3.96 crore decrease in other current and non-current financial liabilities.

Financing activities generated Rs 9.20 crore during the latest half year through increased current and non-current borrowings, compared with Rs 3.31 crore in the corresponding 2025 period. Investing activities used Rs 19.48 lakh, including Rs 27.08 lakh for property, plant, equipment, capital work-in-progress and intangible assets, net of sale proceeds.

Cash and cash equivalents plus other bank balances were Rs 4.74 crore at September 30, 2026, against Rs 4.73 crore at the start of the financial year. Total assets stood at Rs 134.89 crore, compared with Rs 133.73 crore at March 31, 2026, while inventories increased to Rs 39.52 crore from Rs 39.02 crore.

Non-current borrowings were Rs 85.57 crore at September 30, 2026, up from Rs 76.37 crore at March 31, 2026. Trade receivables increased to Rs 3.62 crore from Rs 2.97 crore, and other equity was Rs 34.80 crore, marginally lower than Rs 34.83 crore at the financial year-end.

Was Eastern Silk's September result reviewed by auditors?

Eastern Silk's standalone results for the quarter and half year ended September 30, 2026 received an unmodified limited-review conclusion from Vyas & Vyas, Chartered Accountants, dated November 14, 2026. The board approved the unaudited standalone results on November 14, at a meeting held from 2:30 p.m. to 4:15 p.m.

The auditor conducted its work under Standard on Review Engagement 2410, which it said provides moderate assurance rather than the assurance obtained in an audit. It also stated that the September-quarter result was the balancing figure between the unaudited half-year results and published year-to-date figures through the June 2026 quarter.

The June 2026 standalone quarterly results were reviewed, while the March 31, 2026 financial statements were audited by predecessor auditor B.K. Shroff & Co. The filing identifies the September 2026 figures as unaudited standalone results prepared under Ind AS.

Conclusion

Eastern Silk's September-quarter profit of Rs 78.38 lakh reversed losses in both the June 2026 and September 2025 quarters as revenue reached Rs 7.57 crore and total expenses fell to Rs 7.06 crore. The improvement did not fully remove the first-quarter deficit, leaving the six-month period with a Rs 1.64 lakh net loss.

The next reported results will show whether the September-quarter profit can be sustained while working capital is managed. The filing sets no financial target or scheduled operating event, leaving the Rs 8.99 crore operating cash outflow, Rs 9.20 crore financing inflow and Rs 85.57 crore of non-current borrowings as unresolved September 2026 matters.