Winsome Yarns Limited reports FY26 loss of ₹12.55 crore

Winsome Yarns Limited reported a FY26 loss of ₹12.55 crore, compared with a ₹17.30 crore loss in FY25, while revenue from operations fell to ₹0.22 crore and its Derabassi and Mohali textile plants remained shut. The financial results reflect restricted operating activity during the company’s insolvency-resolution process.

What were Winsome Yarns' FY26 financial results?

Winsome Yarns recorded total income of ₹1.70 crore for the year ended March 31, 2026, down from ₹5.06 crore in FY25. Revenue from operations declined to ₹0.22 crore from ₹4.19 crore, while other income rose to ₹1.48 crore from ₹0.86 crore. The company reported a loss before exceptional items and tax of ₹12.55 crore, improving from a loss of ₹17.30 crore in the preceding financial year.

The reduction in the annual loss came alongside a fall in total expenses. Total expenses were ₹14.25 crore in FY26, against ₹22.35 crore in FY25. The annual report does not indicate a return to normal textile production, and the lower loss should therefore be read alongside the substantial reduction in income and expenses.

Why did Winsome Yarns' operating income decline?

Winsome Yarns' operating income declined because production at its Derabassi, Punjab plant and its Winsome Knitwear plant in Mohali remained fully shut down. The company identified these shutdowns as the reason its FY26 total income was below the prior year’s level.

The company stated that its micro hydro power projects in Ludhiana continued to operate for captive consumption. However, these projects did not offset the absence of production at the textile facilities. With revenue from operations at ₹0.22 crore for the full year, the reported figures indicate very limited operating activity from the core yarn and knitwear business.

The comparison also shows that other income accounted for most of FY26 total income. Other income of ₹1.48 crore was materially higher than revenue from operations, underscoring that the year’s reported income was not driven primarily by manufacturing sales.

What did Winsome Yarns report for the June 2026 quarter?

Winsome Yarns reported an unaudited standalone loss of ₹3.32 crore for the quarter ended June 30, 2026. The quarterly filing showed no revenue from operations, other income of ₹0.37 crore, total expenses of ₹3.69 crore, and a loss before tax of ₹3.32 crore.

The June-quarter figures were approved by directors then in office. The filing said the financial statements included transactions and information relating to the period before those directors were appointed or reconstituted, including the period when the company was under the control and supervision of the Resolution Professional.

The statutory auditors carried out a limited review of the June-quarter results under Regulation 33 of the SEBI Listing Obligations and Disclosure Requirements Regulations. The available filing does not provide a comparable June 2025 revenue or profit figure, so a year-on-year comparison cannot be drawn from the disclosed data.

How is the insolvency process affecting Winsome Yarns?

Winsome Yarns has been under the Corporate Insolvency Resolution Process, or CIRP, under the Insolvency and Bankruptcy Code, 2016. Earlier disclosures said the powers of the board of directors had been suspended and control and management were vested with the Resolution Professional during the process.

In a filing for the quarter ended June 2026, the company said the directors who signed the results had been appointed or reconstituted after approval of the Resolution Plan. The directors stated that they approved the financial results based on the books of account, records, information and representations made available to them.

Earlier auditor-related disclosures also noted that accumulated losses substantially exceeded the company’s net worth, while the accounts continued to be prepared on a going-concern basis. The company’s response was that it was being maintained as a going concern as part of the resolution process. This remains important for investors because the operating plants are shut and the reported income base remains limited.

What should investors monitor after these results?

Investors should monitor the company’s next reported quarterly financial statement for evidence of any change in revenue from operations, plant activity and expenses. The board was scheduled to consider the unaudited standalone results for the quarter ended September 30, 2026 on November 12, 2026, according to the disclosed results calendar.

The available information does not include a share-price reaction or a timeline for restarting the Derabassi and Mohali facilities. It also does not provide financial projections after implementation of the Resolution Plan. As a result, the disclosed financial picture remains centred on low operating revenue, continued losses and the transition following the insolvency process.

Conclusion

Winsome Yarns' FY26 loss narrowed to ₹12.55 crore from ₹17.30 crore in FY25, but the improvement coincided with a sharp fall in income and fully shut textile plants. Revenue from operations of ₹0.22 crore shows that core manufacturing activity remained minimal during the year.

The next point to watch is the September 2026 quarter’s financial disclosure, which was scheduled for board consideration on November 12, 2026. Investors will also need to assess future filings for updates on the Resolution Plan, management transition, plant operations and any sustained recovery in operating revenue.