Vama Wovenfab FY25 Profit Exceeded Five Times Audited Figure

Vama Wovenfab Limited restated its FY25 profit after tax at Rs 6.84 crore, compared with Rs 1.29 crore in the audited financial statements. The Rs 5.54 crore increase was principally explained by a Rs 5.37 crore adjustment classified as prior-period items, while the disclosure gives no transaction-level explanation for that item.

Why was Vama Wovenfab’s FY25 profit more than five times the audited figure?

Vama Wovenfab’s FY25 restated profit exceeded its audited figure by more than five times because the profit reconciliation includes a Rs 5.37 crore positive prior-period-items adjustment. Audited profit after tax for the period ended 31 March 2025 was Rs 1.29 crore, while restated profit after tax was Rs 6.84 crore, a difference of Rs 5.54 crore.

The company places the prior-period entry under “other material adjustments” in its restated statement of adjustments. It does not classify the item as a change in accounting policy or an audit qualification. The disclosed schedule does not identify the transaction, the earlier accounting period involved, or whether the adjustment relates to revenue, expenses, assets or liabilities.

Other disclosed FY25 adjustments had a net positive effect of Rs 17.74 lakh. These comprised a Rs 8.08 lakh adjustment to current-year income tax and a Rs 11.07 lakh deferred-tax adjustment, offset by Rs 8,000 of other-income adjustment and Rs 1.33 lakh of other expenses. Deferred tax is an accounting amount arising from differences between accounting and tax treatment, and the disclosure does not state that it was a cash-tax payment during FY25.

How do Vama Wovenfab’s restated profits compare across the three periods?

Vama Wovenfab’s restated profit after tax increased from Rs 2.63 crore for the year ended 31 March 2024 to Rs 6.84 crore for the period ended 31 March 2025, then to Rs 11.55 crore for the period ended 31 March 2026. The company uses these restated figures in its other financial information and ratio calculations.

The FY25 change was the largest reconciliation movement among the three reported periods. FY24 audited profit after tax of Rs 2.70 crore was restated down by Rs 7.24 lakh to Rs 2.63 crore. For the period ended 31 March 2026, audited and restated profit after tax were both Rs 11.55 crore, with no profit adjustment shown in the reconciliation.

The FY25 restated figure also determines the earnings-per-share measure disclosed by Vama Wovenfab. Restated basic and diluted earnings per share were Rs 18.66 for FY25 on both a pre-bonus and post-bonus basis, calculated using 36,64,493 weighted-average equity shares. The earnings-per-share calculation therefore reflects Rs 6.84 crore of restated profit rather than Rs 1.29 crore of audited profit.

How did the FY25 restatement affect Vama Wovenfab’s shareholders’ funds?

Vama Wovenfab’s shareholders’ funds at 31 March 2025 were restated to Rs 17.15 crore from Rs 16.66 crore in the audited financial statements. The resulting increase was Rs 48.52 lakh, which was smaller than the Rs 5.54 crore increase in FY25 profit because the shareholders’ funds schedule also incorporates restatement effects across periods.

The 31 March 2025 reconciliation shows Rs 5.54 crore of differences carried over from changes in profit or loss due to the restated effect. It also shows a Rs 5.06 crore negative difference pertaining to changes in profit or loss for the restated period. The two disclosed items explain the net Rs 48.52 lakh uplift in shareholders’ funds at that date.

The comparative balance-sheet effect was materially different at 31 March 2024. Audited shareholders’ funds of Rs 14.11 crore were restated to Rs 9.05 crore, a reduction of Rs 5.06 crore. At 31 March 2026, audited shareholders’ funds of Rs 28.69 crore and restated shareholders’ funds of Rs 28.69 crore differed by Rs 1,000, which the schedule records as an other material adjustment.

Does the disclosure show that FY25 current-period business performance changed?

The disclosure does not establish that the Rs 5.37 crore prior-period adjustment represents FY25 current-period business performance. Vama Wovenfab reports FY25 earnings before interest, tax, depreciation and amortisation, or EBITDA, of Rs 10.37 crore, but its profit reconciliation assigns the central restatement movement to prior-period items rather than to a separately identified operating line.

EBITDA is defined by Vama Wovenfab as profit or loss before finance costs, income taxes, depreciation and amortisation expenses. Reported EBITDA rose from Rs 5.10 crore in FY24 to Rs 10.37 crore in FY25 and Rs 17.86 crore for the period ended 31 March 2026. However, the source does not provide an audited-versus-restated EBITDA reconciliation or identify how the FY25 prior-period item affected EBITDA.

Vama Wovenfab reports FY25 adjusted profit after tax of Rs 6.84 crore, equal to restated profit after tax of Rs 6.84 crore. Its other financial information shows no add-back for prior-period items. A metric that removes the Rs 5.37 crore item to isolate FY25 profit excluding that adjustment is not provided in the supplied financial statements.

The company’s FY25 return on net worth was 52.20%, compared with 34.00% for FY24 and 50.37% for the period ended 31 March 2026. Vama Wovenfab defines return on net worth as restated profit after tax available to equity shareholders divided by restated average net worth. The FY25 ratio consequently includes the profit effect of the prior-period adjustment.

Conclusion

Vama Wovenfab’s FY25 restatement raised profit after tax from Rs 1.29 crore to Rs 6.84 crore, with the Rs 5.37 crore prior-period-items entry accounting for nearly all of the Rs 5.54 crore difference. The same restatement increased shareholders’ funds at 31 March 2025 by Rs 48.52 lakh, while the FY24 reconciliation reduced both reported profit and shareholders’ funds.

The next disclosure to watch is any explanation of the underlying transaction, originating period and affected financial-statement line for the Rs 5.37 crore prior-period item. The period ended 31 March 2026 had no disclosed profit-restatement adjustment, but the supplied statement contains no plan or further update that establishes whether the FY25 item has implications for later earnings.