Ashnoor Textile Mills announced a challenging fiscal year 2025-26 with a 46.85% decline in profit after tax to Rs 8.48 crore. The company cited US export tariff disruptions as the primary driver for a 36.34% drop in operating income. The Board has skipped dividends for the year, while upcoming AGM resolutions include leadership reappointment and director succession plans. Shareholders should watch for signs of export stabilization in the coming quarters.
Ashnoor Textile Mills FY26 Profit Drops 46.85% Amid Export Disruptions
Operating Income: Rs 113.61 Crore; Profit After Tax: Rs 8.48 Crore.
Reader Takeaway: Cost-cutting and liquidity remain stable, though US export tariff headwinds continue to pressure profit margins.
What just happened
Ashnoor Textile Mills released its annual performance report for FY 2025-26, revealing a sharp contraction in financial metrics. Operating income fell 36.34% to Rs 113.61 crore, while Profit After Tax (PAT) declined 46.85% to Rs 8.48 crore. The board has opted not to declare a dividend for the year.
Why this matters
The company remains highly dependent on the US market. Management highlighted that unprecedented tariff-related trade disruptions significantly impacted export volumes. These macro-economic pressures caused a direct hit to the bottom line, resulting in a Basic EPS of Rs 5.32 compared to Rs 10.02 in the previous year.
Governance and Leadership
The 43rd Annual General Meeting is scheduled for September 29, 2026. Key items on the agenda include the reappointment of Ms. Noor Gupta as Whole-Time Director for three years and the continuation of Mr. Abhinav Gupta as a Non-Executive Non-Independent Director. Additionally, the company announced the appointment of Ms. Parul Aggarwal as an Independent Director.
Risks to watch
Regulatory risks persist with ongoing appeals regarding GST demand notices for FY 2018-19 and 2019-20. The company is also pursuing a writ petition in the Chandigarh High Court concerning legacy ROSL benefits for FY 2017-18. A minor penalty was also recently paid to the BSE for a delay in filing shareholding patterns.
What to track next
Management is focusing on normalizing export flows and improving operating margins in FY 2026-27. Investors should monitor how the company adapts its export strategy to mitigate the impact of ongoing US trade policy volatility.