Eastern Treads September loss widens to Rs 1.05 crore

Eastern Treads Limited reported a standalone net loss of Rs 1.05 crore for the quarter ended September 30, 2026, versus a Rs 16.37 lakh loss in the preceding quarter, even as revenue from operations rose 17% sequentially to Rs 16.46 crore. Higher material, inventory and other expenses exceeded the increase in income.

Why did Eastern Treads report a wider September-quarter loss?

Eastern Treads recorded total expenses of Rs 17.56 crore in the September 2026 quarter, exceeding total income of Rs 16.51 crore and producing a pre-tax as well as post-tax loss of Rs 1.05 crore. The company had reported a Rs 16.37 lakh loss in the June 2026 quarter and a Rs 53.49 lakh loss in the September 2025 quarter.

The sequential loss widened by Rs 88.16 lakh, while total income increased by Rs 2.35 crore from Rs 14.16 crore in the June 2026 quarter. Total expenses increased by Rs 3.23 crore over the same period, a larger rise than income. The statement did not report exceptional items or tax expense for the September 2026 quarter, so the loss before tax and loss for the period were the same.

Eastern Treads' basic and diluted loss per equity share was Rs 2.00 for the September 2026 quarter, compared with a loss per share of Rs 0.31 in June 2026 and Rs 1.02 a year earlier. Paid-up equity share capital in the quarterly results stood at Rs 5.23 crore, with a face value of Rs 10 per share.

How did Eastern Treads' costs change during the quarter?

Eastern Treads' cost of materials consumed rose to Rs 11.76 crore in the September 2026 quarter from Rs 9.61 crore in the June 2026 quarter, an increase of Rs 2.15 crore. Materials were the largest expense line and also exceeded the Rs 10.91 crore reported in the September 2025 quarter.

Changes in inventories of finished goods, work-in-progress and stock-in-trade were an expense of Rs 23.12 lakh in September, compared with a credit of Rs 3.05 lakh in June. This represented a sequential movement of Rs 26.17 lakh in the expense line. Purchases of stock-in-trade fell to Rs 69,000 from Rs 1.14 lakh, but that decline was small relative to the increase in material consumption.

Other expenses increased to Rs 2.88 crore from Rs 2.10 crore in the June quarter, while employee-benefit expense rose to Rs 1.69 crore from Rs 1.63 crore. Finance costs were broadly steady at Rs 82.21 lakh, compared with Rs 81.87 lakh in June, and depreciation and amortisation declined to Rs 16.64 lakh from Rs 18.02 lakh.

How did Eastern Treads perform in the first half of 2026-27?

Eastern Treads reported a loss of Rs 1.21 crore for the half year ended September 30, 2026, compared with a loss of Rs 67.49 lakh for the corresponding half year ended September 30, 2025. Revenue from operations was Rs 30.51 crore, below Rs 32.78 crore in the prior-year half year.

Total income for the first half was Rs 30.67 crore, down from Rs 33.00 crore a year earlier, while total expenses declined to Rs 31.88 crore from Rs 33.67 crore. Although expenses were lower by Rs 1.79 crore year on year, income fell by Rs 2.32 crore, widening the half-year loss by Rs 53.40 lakh.

Material consumption declined to Rs 21.37 crore in the first half of 2026-27 from Rs 21.84 crore a year earlier. Employee-benefit expense fell to Rs 3.33 crore from Rs 4.42 crore and other expenses declined to Rs 4.98 crore from Rs 6.13 crore. Finance costs, however, rose to Rs 1.64 crore from Rs 1.26 crore, while the inventory-change line shifted to an expense of Rs 20.07 lakh from a credit of Rs 37.16 lakh.

What do Eastern Treads' balance sheet and cash flow show?

Eastern Treads had total assets of Rs 37.00 crore as of September 30, 2026, compared with Rs 35.30 crore at March 31, 2026. Current assets increased to Rs 22.85 crore from Rs 20.93 crore as trade receivables rose to Rs 15.31 crore from Rs 12.77 crore, even as inventories declined to Rs 5.45 crore from Rs 6.12 crore.

The balance sheet showed negative total equity of Rs 13.83 crore at September 30, 2026, compared with negative Rs 12.62 crore at March 31, 2026. Other equity was negative Rs 19.25 crore, and the notes state that it included accumulated losses of Rs 32.28 crore. Total liabilities were Rs 50.83 crore, up from Rs 47.92 crore at the previous financial year-end.

Non-current borrowings increased to Rs 13.71 crore from Rs 10.34 crore, while current borrowings declined to Rs 21.77 crore from Rs 22.76 crore. Trade payables to creditors other than micro and small enterprises rose to Rs 10.80 crore from Rs 9.39 crore. The cash-flow statement recorded a Rs 2.54 crore increase in trade receivables during the first half.

Eastern Treads used Rs 67.25 lakh in operating activities in the half year ended September 30, 2026, compared with cash generated from operations of Rs 24.71 lakh a year earlier. Net cash used in investing activities was Rs 13.89 lakh, compared with Rs 79.60 lakh in the prior-year half. Cash and cash equivalents ended the period at Rs 49.92 lakh, down from Rs 56.42 lakh at March 31, 2026.

Conclusion

Eastern Treads' September-quarter result shows that a Rs 2.41 crore sequential rise in revenue from operations was not sufficient to offset a Rs 3.23 crore increase in expenses. Material consumption, inventory changes and other expenses all increased from the June quarter, resulting in a Rs 1.05 crore quarterly loss and a first-half loss of Rs 1.21 crore.

What to watch next is whether Eastern Treads converts its Rs 15.31 crore trade receivables and lower Rs 5.45 crore inventory into operating cash after first-half operating cash flow turned negative Rs 67.25 lakh. The filing states that the September 2026 standalone results were reviewed by the Audit Committee and approved by the Board on November 12, 2026, with a limited review carried out by the statutory auditors.