Kakatiya Textiles Limited half-year revenue rises, loss narrows

Kakatiya Textiles Limited reported revenue from operations of Rs 29.04 crore for the half year ended 30 September 2026, up from Rs 11.27 crore a year earlier, while its post-tax loss narrowed to Rs 62 lakh and operating activities used Rs 2.15 crore of cash.

Why did Kakatiya Textiles Ltd remain loss-making despite higher sales?

Kakatiya Textiles Ltd remained loss-making because total expenses of Rs 29.79 crore exceeded total income of Rs 29.07 crore in the half year ended 30 September 2026. The loss before exceptional items and tax was Rs 72 lakh, improving from a Rs 1.66 crore loss in the corresponding half year of 2025.

Exceptional income of Rs 10 lakh reduced the reported pre-tax and post-tax loss to Rs 62 lakh, compared with a Rs 1.36 crore loss after Rs 30 lakh of exceptional items in the prior-year half year. The filing reports no current or deferred tax expense in either half-year period.

The latest exceptional income included a Rs 7 lakh waiver of surcharge and interest on power charges in the June 2026 quarter, covering October 2016 to March 2024, and a Rs 3 lakh profit on the sale of old machinery in the September 2026 quarter. Before those items, Kakatiya Textiles Ltd’s half-year loss was Rs 72 lakh.

What drove Kakatiya Textiles Ltd's revenue increase?

Kakatiya Textiles Ltd’s revenue from operations increased by Rs 17.77 crore year on year to Rs 29.04 crore in the half year ended 30 September 2026. The company identifies cotton-yarn manufacturing as its only reportable segment under Indian Accounting Standard 108, so the filing provides no product or geographic breakdown of the increase.

The September 2026 quarter accounted for Rs 17.20 crore of revenue, compared with Rs 11.84 crore in the June 2026 quarter and Rs 4.26 crore in the September 2025 quarter. Total income in the latest quarter was Rs 17.22 crore, including Rs 2 lakh of other income, while total expenses were Rs 17.70 crore.

Material consumed rose to Rs 15.74 crore in the latest half year from Rs 9.21 crore a year earlier, while stock-in-trade purchases increased to Rs 6.12 crore from Rs 1.46 crore. Power and fuel costs were Rs 3.29 crore against Rs 2.86 crore, and other expenses increased to Rs 3.97 crore from Rs 1.59 crore.

Why was Kakatiya Textiles Ltd's operating cash flow negative?

Kakatiya Textiles Ltd used Rs 2.15 crore in operating activities in the half year ended 30 September 2026, compared with Rs 1.71 crore generated in the corresponding 2025 period. Its Rs 62 lakh loss before tax was adjusted for Rs 43 lakh of depreciation, Rs 3 lakh profit on sale of fixed assets and Rs 3 lakh of interest income, resulting in a Rs 19 lakh operating loss before working-capital movements.

Working-capital movements increased the cash use to Rs 2.14 crore before Rs 1 lakh of direct taxes paid. Inventories absorbed Rs 78 lakh, other current assets absorbed Rs 51 lakh and other current liabilities declined by Rs 3.04 crore, partly offset by an Rs 89 lakh reduction in trade receivables and a Rs 1.54 crore increase in trade payables.

The cash-flow statement reports Rs 1.21 crore spent on property, plant and equipment and capital work in progress during the latest half year. It reports net cash from investing activities of Rs 9 lakh, while cash and cash equivalents fell by Rs 34 lakh to Rs 36 lakh at 30 September 2026 from Rs 70 lakh at the start of the financial year.

How did Kakatiya Textiles Ltd fund its cash needs?

Kakatiya Textiles Ltd reported Rs 2.80 crore of proceeds from borrowings during the half year ended 30 September 2026, compared with Rs 24 lakh in the prior-year half year. With no interest or finance charges reported in the cash-flow statement, financing activities generated net cash of Rs 2.80 crore.

The financing-liability reconciliation records total borrowings of Rs 44.03 crore at 30 September 2026, up from Rs 41.23 crore at 31 March 2026. Separately, the balance sheet reports non-current borrowings of Rs 39.03 crore at 30 September 2026, compared with Rs 36.23 crore at the preceding year-end, and does not show an amount for current borrowings.

Total assets rose to Rs 42.14 crore from Rs 41.46 crore over the six months. Property, plant and equipment increased to Rs 20.06 crore from Rs 19.29 crore, inventories rose to Rs 6.58 crore from Rs 5.80 crore, and trade receivables fell to Rs 1.16 crore from Rs 2.05 crore.

What changed in Kakatiya Textiles Ltd's equity and quarterly result?

Kakatiya Textiles Ltd reported negative equity of Rs 18.47 crore at 30 September 2026, compared with negative Rs 17.85 crore at 31 March 2026. Other equity moved to negative Rs 24.26 crore from negative Rs 23.64 crore, while equity share capital remained Rs 5.79 crore.

For the quarter ended 30 September 2026, Kakatiya Textiles Ltd recorded a Rs 45 lakh net loss, compared with a Rs 17 lakh loss in the June 2026 quarter and a Rs 74 lakh loss a year earlier. Basic and diluted loss per share after exceptional items was Rs 1.08 for the half year, against Rs 2.35 in the prior-year half year.

The unaudited results were reviewed by the audit committee and approved by the board on 13 November 2026. The statutory auditors carried out a limited review of the financial results for the quarter and half year ended 30 September 2026.

Conclusion

Kakatiya Textiles Ltd delivered Rs 29.04 crore of half-year revenue, an increase of Rs 17.77 crore from the comparable 2025 period, and reduced its post-tax loss by Rs 74 lakh. However, expenses remained above income, operating activities used Rs 2.15 crore, and financing cash inflow included Rs 2.80 crore of borrowing proceeds.

The filing discloses no revenue target, operating-cash-flow target or scheduled future financial event. The unresolved measures to watch in subsequent results are whether cotton-yarn revenue sustains the September-quarter level of Rs 17.20 crore, whether operating cash flow changes from the Rs 2.15 crore half-year outflow, and how borrowings develop from Rs 44.03 crore at 30 September 2026.