Ashutosh Fibre FY26 profit nearly doubled despite 3% revenue rise

Ashutosh Fibre Limited nearly doubled FY26 net profit to Rs 16.04 crore from Rs 8.51 crore, although revenue from operations rose 3% to Rs 117.37 crore. Lower material consumption, no stock-in-trade purchases and lower other expenses drove the expansion, even as employee, finance and depreciation charges increased.

How did Ashutosh Fibre nearly double FY26 profit?

Ashutosh Fibre lifted profit after tax by 89% in FY26 because total expenses fell 8% to Rs 95.87 crore while total income increased 2% to Rs 117.43 crore. Profit before tax rose to Rs 21.57 crore from Rs 11.10 crore in FY25, and the restated statement recorded no exceptional, extraordinary or prior-period items in either year.

Revenue from operations added Rs 3.34 crore in FY26, while total expenses fell by Rs 8.01 crore. Other income declined to Rs 6.03 lakh from Rs 94 lakh in FY25, so the increase in profit before tax occurred despite a Rs 87.97 lakh reduction in other income.

Ashutosh Fibre reported basic and diluted earnings per equity share, post bonus, of Rs 10.19 in FY26, compared with Rs 5.40 in FY25 and Rs 4.48 in FY24. The company manufactures and trades technical textile yarns and recognises sales of textile goods when significant risks and rewards transfer to the buyer, generally on dispatch, net of returns, discounts, rebates and goods and services tax.

Which costs drove Ashutosh Fibre's FY26 profit increase?

Ashutosh Fibre's largest cost reductions were in material consumption, stock-in-trade purchases and other expenses. Material consumed declined 7% to Rs 64.68 crore from Rs 69.74 crore, purchases of stock in trade fell from Rs 2.93 crore to nil, and other expenses declined 12% to Rs 17.10 crore from Rs 19.36 crore.

Those three expense lines fell by a combined Rs 10.25 crore. Changes in inventories of finished goods, work in progress and stock in trade were negative Rs 2.81 crore, compared with negative Rs 1.45 crore in FY25; the additional negative Rs 1.36 crore reduced the total expense line because the item is presented as a negative expense.

Employee-benefit expense increased 30% to Rs 7.33 crore, finance costs increased 15% to Rs 4.68 crore, and depreciation and amortisation increased 36% to Rs 4.88 crore. These three increases totalled Rs 3.60 crore, partly offsetting the reductions in material, trading purchases, other expenses and inventory changes.

The tax charge rose to Rs 5.52 crore in FY26 from Rs 2.59 crore in FY25. Current tax was Rs 4.38 crore and deferred tax, which reflects timing differences between taxable and accounting income, was Rs 1.15 crore; nevertheless, profit after tax increased by Rs 7.53 crore.

Did operating cash flow support Ashutosh Fibre's FY26 earnings?

Ashutosh Fibre generated Rs 21.44 crore of net cash from operating activities in FY26, up from Rs 11.22 crore in FY25. Net cash from operating activities starts with profit before tax, adjusts for specified non-cash and financing items, and includes movements in working-capital balances.

Operating profit before working-capital changes reached Rs 31.12 crore in FY26, against Rs 18.62 crore in FY25. The calculation included Rs 4.88 crore of depreciation and amortisation and Rs 4.68 crore of finance cost, while interest income of Rs 5.03 lakh was deducted.

Working-capital movements reduced FY26 cash by Rs 6.31 crore. Higher inventories used Rs 3.85 crore and higher trade receivables used Rs 2.16 crore, while short-term loans and advances released Rs 2.59 crore; other current assets absorbed Rs 1.62 crore and trade payables fell by Rs 85.57 lakh.

Operating cash did not result in a higher closing cash balance because investing activities used Rs 10.32 crore and financing activities used Rs 14.15 crore in FY26. Cash and cash equivalents were Rs 44.31 lakh at March 31, 2026, down from Rs 3.47 crore a year earlier, after a net annual decrease of Rs 3.02 crore.

How much did Ashutosh Fibre spend on assets and repay debt?

Ashutosh Fibre reported Rs 10.37 crore of fixed-asset purchases in FY26, following Rs 26.46 crore in FY25 and Rs 7.62 crore in FY24. Property, plant and equipment stood at Rs 58.61 crore at March 31, 2026, up from Rs 55.70 crore, while capital work in progress rose to Rs 3.51 crore from Rs 78.30 lakh.

Reported long-term borrowings declined to Rs 25.17 crore at March 31, 2026 from Rs 30.90 crore at March 31, 2025. Short-term borrowings fell to Rs 22.76 crore from Rs 26.53 crore, bringing combined borrowings to Rs 47.92 crore, or Rs 9.52 crore below the FY25 balance.

Ashutosh Fibre repaid Rs 10.59 crore of long-term borrowings and raised Rs 3.25 crore of such borrowings during FY26. It also reported a Rs 3.92 crore decrease in short-term borrowings, while cash interest and other expenses paid on borrowings were Rs 2.89 crore compared with finance cost of Rs 4.68 crore recognised in the income statement.

What do Ashutosh Fibre's FY26 statements show about its financial position?

Ashutosh Fibre reported total assets and total equity and liabilities of Rs 112.06 crore at March 31, 2026, compared with Rs 104.60 crore at March 31, 2025. Share capital increased to Rs 15.75 crore from Rs 1.75 crore, and reserves and surplus rose to Rs 36.15 crore from Rs 34.10 crore.

Inventories increased to Rs 18.28 crore from Rs 14.43 crore and trade receivables rose to Rs 21.44 crore from Rs 19.28 crore. The two balance-sheet items increased by Rs 6.01 crore in aggregate, consistent with the Rs 6.31 crore total cash outflow from FY26 working-capital movements.

The financial information was restated from audited FY24, FY25 and FY26 statements and approved by Ashutosh Fibre's board on July 29, 2026. Shah & Patel issued unqualified reports for the three years, while stating that restatement adjustments and regroupings can cause presented amounts to differ from the original audited financial statements.

Conclusion

Ashutosh Fibre's FY26 profit increase was principally cost-led rather than driven by a sharp sales increase: revenue from operations rose Rs 3.34 crore, while total expenses fell Rs 8.01 crore. The company also generated Rs 21.44 crore of operating cash, funding Rs 10.37 crore of fixed-asset purchases while reported long-term and short-term borrowings declined.

The next financial update will show whether material consumption remains below FY25's Rs 69.74 crore and whether inventories and receivables continue to use operating cash. Capital work in progress of Rs 3.51 crore at March 31, 2026 represents assets under installation or development under Ashutosh Fibre's accounting policy, leaving the completion and deployment of that balance to be reflected in later statements.