LWS Knitwear Q2 revenue drops to Rs 7.14 crore as profit rises

L W S Knitwear Limited reported revenue from operations of Rs 7.14 crore for the quarter ended September 30, 2026, compared with Rs 32.89 crore a year earlier, while net profit increased to Rs 30.31 lakh from Rs 29.58 lakh. The unaudited results were approved by its board on November 13, 2026.

Why did LWS Knitwear's Q2 revenue decline?

LWS Knitwear's revenue from operations declined by Rs 25.75 crore year on year to Rs 7.14 crore in the quarter ended September 30, 2026, from Rs 32.89 crore in the corresponding quarter ended September 30, 2025. The filing reports no other income for the latest quarter, so total revenue was also Rs 7.14 crore.

The decline also continued from the immediately preceding quarter. Revenue from operations was Rs 12.38 crore in the quarter ended June 30, 2026, meaning Q2 revenue was lower by Rs 5.24 crore sequentially. The company describes only one primary reportable segment in the filing, so the results do not provide a segment-level breakdown of the movement.

For the six months ended September 30, 2026, LWS Knitwear's revenue from operations was Rs 19.52 crore, compared with Rs 45.96 crore for the six months ended September 30, 2025. That represents a reduction of Rs 26.44 crore across the first half. The latest half-year revenue exceeded the Rs 9.62 crore reported for the full year ended March 31, 2026, although these are different reporting periods.

How did LWS Knitwear raise Q2 profit despite lower sales?

LWS Knitwear reported net profit of Rs 30.31 lakh for Q2, up Rs 0.73 lakh from Rs 29.58 lakh in the year-earlier quarter despite the lower revenue base. Profit before tax was Rs 40.51 lakh, compared with Rs 38.31 lakh a year earlier, while tax expense was Rs 10.20 lakh against Rs 8.73 lakh.

The reported expense structure changed substantially alongside revenue. Total expenses were Rs 6.74 crore in Q2, down from Rs 32.50 crore in Q2 of the prior year. Purchases of stock-in-trade were Rs 7.99 crore in the latest quarter, while changes in inventories were negative Rs 1.88 crore, compared with purchases of Rs 27.23 crore and inventory changes of Rs 4.64 crore a year earlier.

Employee benefits expense was Rs 12.29 lakh in Q2, compared with Rs 8.79 lakh in Q2 of 2025. Finance costs were Rs 43.40 lakh, below Rs 49.57 lakh a year earlier, while depreciation and amortisation expense was Rs 17,000, compared with Rs 2.04 lakh. The lower total expense figure coincided with the increase in profit before tax; the filing does not provide management commentary on the revenue or cost movements.

What do the half-year results show for LWS Knitwear?

LWS Knitwear recorded net profit of Rs 48.04 lakh for the six months ended September 30, 2026, compared with Rs 56.81 lakh for the corresponding six months of 2025. The half-year profit therefore fell by Rs 8.77 lakh, even though the Q2 quarterly profit was Rs 0.73 lakh higher than the year-earlier quarter.

Profit before tax for the latest six-month period was Rs 63.85 lakh, versus Rs 73.59 lakh in the prior-year period. Total expenses declined to Rs 18.88 crore from Rs 45.22 crore, while revenue declined to Rs 19.52 crore from Rs 45.96 crore. The six-month basic and diluted earnings per share were Rs 0.33, compared with Rs 0.39 in the prior-year half.

LWS Knitwear reported paid-up equity share capital of Rs 14.63 crore, with a face value of Rs 10 per equity share. Reserves excluding revaluation reserve were Rs 18.47 crore as at September 30, 2026, compared with Rs 17.99 crore as at March 31, 2026. No profit or loss from discontinuing operations was reported for either the quarter or six-month period.

What changed in LWS Knitwear's balance sheet and cash flow?

LWS Knitwear reported total assets of Rs 60.58 crore as at September 30, 2026, up from Rs 56.05 crore at March 31, 2026. Current assets rose to Rs 60.24 crore from Rs 55.92 crore, while total equity increased to Rs 33.10 crore from Rs 32.62 crore.

Inventories increased to Rs 23.26 crore at September 30 from Rs 19.40 crore at March 31. Trade receivables increased to Rs 22.92 crore from Rs 22.15 crore, while cash and cash equivalents decreased to Rs 15.87 lakh from Rs 2.69 crore. Other current assets rose to Rs 13.80 crore from Rs 11.13 crore.

Total liabilities were Rs 27.48 crore at September 30, 2026, compared with Rs 23.43 crore at March 31, 2026. Non-current borrowings declined to Rs 9.07 crore from Rs 9.88 crore, but current borrowings rose to Rs 8.74 crore from Rs 7.97 crore and non-MSME trade payables increased to Rs 6.98 crore from Rs 3.76 crore.

The cash-flow statement reported net cash used in operating activities of Rs 1.62 crore for the period ended September 30, 2026, compared with net cash generated from operating activities of Rs 95.86 lakh for the year ended March 31, 2026. Cash generated from operations was negative Rs 1.46 crore, after working-capital movements that included a Rs 3.86 crore increase in inventories and a Rs 2.68 crore increase in other current assets.

Conclusion

LWS Knitwear's Q2 result combines a sharp fall in reported operating revenue, to Rs 7.14 crore from Rs 32.89 crore, with a modest rise in quarterly net profit to Rs 30.31 lakh. Total expenses fell by more than revenue in absolute rupee terms, while six-month net profit of Rs 48.04 lakh remained below the prior-year Rs 56.81 lakh.

The filing provides no management outlook, revenue target or explanation for the sales contraction. The unresolved matters to watch in subsequent disclosures are whether revenue changes from the Q2 level, how inventory of Rs 23.26 crore and trade receivables of Rs 22.92 crore move, and whether operating cash flow improves from the Rs 1.62 crore outflow reported for the six-month period.