Mohite Industries has reported a challenging fiscal year with consolidated revenue falling to Rs 153.34 crore and profit after tax dropping to Rs 3.62 crore. The company is under financial pressure, having received SARFAESI notices from LIC Housing Finance and Bank of Baroda for overdue payments. To stabilize operations, the board has approved a Rs 150 crore NCD issuance. Investors should remain cautious as the management works to resolve mounting debt obligations amidst a wider textile industry downturn.
Mohite Industries: Financial Strain and Strategic Capital Raise
Revenue fell to Rs 153.34 crore for FY 2025-26, while Profit After Tax declined to Rs 3.62 crore.
Reader Takeaway: Management is navigating severe liquidity stress and debt recovery actions while attempting a Rs 150 crore capital infusion.
What just happened
Mohite Industries has disclosed a decline in financial performance for the fiscal year 2025-26. Consolidated revenue slipped to Rs 153.34 crore compared to Rs 166.75 crore in the previous year. Profitability also narrowed, with consolidated PAT dropping to Rs 3.62 crore from Rs 5.33 crore. Standalone operations showed an even sharper revenue contraction, falling to Rs 99.33 crore.
Why this matters
The company is currently facing critical debt management issues. It has received SARFAESI notices under sections 13(2) and 13(4) from LIC Housing Finance and Bank of Baroda due to outstanding dues exceeding three months. These legal actions highlight the company's immediate liquidity risk and potential strain on its assets.
What changes now
In response to the financial distress, the board approved an issuance of Non-Convertible Debentures (NCDs) worth Rs 150 crore on January 14, 2026. The management intends to use these funds to support ongoing operations and address current financial hurdles. Additionally, the leadership team has seen changes with the appointment of Mr. Sangramsinh Subhashrao Nimbalkar as an Independent Director.
Risks to watch
The textile industry is currently grappling with recessionary pressures, which the company noted hindered its expansion and spindle modernization program. Despite a 50% increase in yarn production, actual sales of yarn and fabric declined by 26.34%. The core risk remains the management's ability to clear bank dues and avoid further asset-related recovery actions under SARFAESI laws.
Context metrics
- Hydro Power generation: 311,48,700 KWH sold to Eon Kharadi Infrastructure.
- Raw material costs: Decreased to Rs 59.06 crore from Rs 99.20 crore.
- AGM: Scheduled for September 30, 2026, in Kolhapur.
What to track next
Investors should closely monitor the progress of the NCD issuance and any formal updates regarding the resolution of outstanding dues with Bank of Baroda and LIC Housing Finance.