Shahlon Silk revenue halves as September profit falls 60%

Shahlon Silk Industries Limited reported revenue from operations of Rs 36.19 crore for the quarter ended September 30, 2026, 53.3% below a year earlier, while net profit fell 59.5% to Rs 62.72 lakh. The unaudited standalone result compares with revenue of Rs 77.49 crore and profit of Rs 1.55 crore in the September 2025 quarter.

Why did Shahlon Silk’s September-quarter revenue fall?

Shahlon Silk’s revenue from operations fell to Rs 36.19 crore in the quarter ended September 30, 2026, from Rs 77.49 crore in the corresponding quarter of 2025. The decline of Rs 41.30 crore followed lower revenue in both reportable businesses identified by Shahlon Silk: textiles and real estate and construction services.

Textile segment revenue was Rs 23.34 crore in the September 2026 quarter, compared with Rs 59.47 crore a year earlier, a reduction of Rs 36.13 crore. Real estate and construction services revenue was Rs 13.04 crore, down from Rs 18.16 crore in the September 2025 quarter. The textile reduction was therefore the larger contributor to the reported year-on-year contraction.

Sequentially, revenue from operations decreased from Rs 37.40 crore in the quarter ended June 30, 2026, to Rs 36.19 crore in the September quarter. Textile revenue declined from Rs 32.13 crore in June, while real estate and construction services revenue rose from Rs 5.55 crore, partially offsetting the textile movement.

How much did Shahlon Silk’s September-quarter profit decline?

Shahlon Silk’s net profit was Rs 62.72 lakh for the September 2026 quarter, compared with Rs 1.55 crore a year earlier and Rs 50.14 lakh in the June 2026 quarter. The year-on-year decrease was Rs 92.21 lakh, while net profit increased by Rs 12.58 lakh from the preceding quarter.

Profit before tax increased to Rs 1.44 crore from Rs 1.21 crore in the September 2025 quarter, despite the lower revenue base. The difference between the pre-tax and post-tax comparisons reflects a tax expense of Rs 81.37 lakh in September 2026, whereas the prior-year quarter recorded a total tax credit of Rs 33.80 lakh.

Profit before exceptional items and tax was Rs 1.43 crore, compared with Rs 1.10 crore a year earlier and Rs 33.55 lakh in the June 2026 quarter. Exceptional items were Rs 1.57 lakh in September 2026, versus Rs 11.59 lakh in September 2025. Basic and diluted earnings per share were Rs 0.07 each, compared with Rs 0.17 each a year earlier.

Which costs and segments shaped Shahlon Silk’s result?

Shahlon Silk’s total expenses fell to Rs 34.96 crore in the September 2026 quarter from Rs 76.53 crore a year earlier, broadly alongside the revenue decrease. Purchases of stock-in-trade declined to Rs 6.97 crore from Rs 46.36 crore, while cost of materials consumed decreased to Rs 9.66 crore from Rs 18.84 crore.

Some reported expense lines rose despite the lower revenue. Manufacturing and direct expenses increased to Rs 10.06 crore from Rs 5.70 crore, and total other expenses rose to Rs 11.51 crore from Rs 7.59 crore. Finance costs declined to Rs 4.15 crore from Rs 5.13 crore, while employee benefit expense fell to Rs 4.10 crore from Rs 4.88 crore.

The textile segment recorded profit before tax and interest of Rs 60.87 lakh, compared with a loss of Rs 3.55 crore in the September 2025 quarter. Real estate and construction services recorded segment profit before tax and interest of Rs 4.97 crore, below Rs 9.77 crore a year earlier. Combined segment profit before tax and interest was Rs 5.58 crore, from which Shahlon Silk deducted finance cost of Rs 4.15 crore.

What do Shahlon Silk’s half-year figures and financial position show?

Shahlon Silk reported first-half revenue from operations of Rs 73.59 crore for the half year ended September 30, 2026, compared with Rs 126.28 crore in the corresponding half of 2025. Half-year net profit was Rs 1.13 crore, down from Rs 2.26 crore, and profit before tax was Rs 1.79 crore against Rs 2.37 crore.

Total assets were Rs 281.58 crore at September 30, 2026, compared with Rs 278.41 crore at March 31, 2026. Total equity was Rs 110.34 crore, including paid-up equity share capital of Rs 17.86 crore, while total liabilities were Rs 171.24 crore, compared with Rs 168.57 crore at the preceding financial year-end.

Net cash from operating activities was Rs 15.93 crore for the six months ended September 30, 2026. Investing activities used Rs 1.80 crore and financing activities used Rs 14.25 crore, resulting in a net decrease in cash and cash equivalents of Rs 11.51 lakh. Closing cash and cash equivalents were Rs 2.20 crore, compared with Rs 2.31 crore at the start of the half year.

Were Shahlon Silk’s September 2026 results audited?

Shahlon Silk’s results for the quarter and half year ended September 30, 2026 were unaudited and subject to a limited review by HTKS & Co. Shahlon Silk’s board reviewed and approved the results on November 4, 2026, the same date as the limited-review report.

HTKS & Co. said nothing had come to its attention to suggest that the unaudited statement was not prepared in accordance with Indian Accounting Standard 34, Interim Financial Reporting, and the applicable disclosure requirements. The auditor stated that a limited review provides moderate assurance and is substantially narrower in scope than an audit.

Shahlon Silk identifies textiles and real estate and construction services as reportable segments under Indian Accounting Standard 108, Operating Segments. At September 30, 2026, segment assets were Rs 255.95 crore for textiles and Rs 25.63 crore for real estate and construction services, totalling Rs 281.58 crore.

Conclusion

Shahlon Silk’s September 2026 filing shows a materially smaller revenue base than a year earlier, led by a Rs 36.13 crore reduction in textile segment revenue. Net profit fell to Rs 62.72 lakh, although profit before tax rose by Rs 23.0 lakh year on year as reported finance costs fell and the textile segment moved from a loss to a profit before tax and interest.

The filing discloses no revenue target, earnings outlook or operating plan. The next reported quarterly results will show whether net profit, which increased from Rs 50.14 lakh in the June 2026 quarter to Rs 62.72 lakh in September, continues to recover and whether textile revenue stabilises after the September decline.