Niwas Spinning Mills FY26 Financials: Profit Soars on Other Income

Net Profit: Rs 710.55 Lakhs | Revenue from Operations: Rs 65.92 Lakhs

Reader Takeaway: Sharp rise in bottom line driven by non-core income; core operations remain modest with negative cash flow.

What just happened

Niwas Spinning Mills Ltd has released its audited financial results for the fiscal year ended March 31, 2026. The company posted a net profit of Rs 7.11 crore, a massive jump from the Rs 2.47 lakh reported in the previous fiscal year. The auditor, ABNJ & Co, has provided an unmodified opinion on these results, confirming no impact of audit qualifications.

Why this matters

The headline profit figure is largely supported by 'Other Income' of Rs 7.72 crore, which accounts for nearly 92% of the company's total revenue of Rs 8.38 crore. While the bottom-line growth is statistically strong, the reliance on non-core income raises questions about the sustainability of these earnings in future quarters.

Financial Breakdown

• Total Revenue: Rs 838.14 lakh (FY26) vs Rs 20.36 lakh (FY25).
• Revenue from Operations: Rs 65.92 lakh vs Rs 0.00 lakh.
• Earnings Per Share (EPS): Increased to Rs 5.04 from Rs 0.01.

Cash Flow and Liquidity

Despite the jump in reported profits, the company’s cash flow statement reveals a disconnect. Niwas Spinning Mills reported a net cash outflow from operating activities of Rs 3.83 crore. However, net cash inflows from investing activities helped the company achieve a net increase in cash and cash equivalents of Rs 3.53 crore for the year.

Risks to watch

Investors should closely watch the sustainability of the 'Other Income' stream. Additionally, the negative operating cash flow suggests that the core textile business is not yet generating sufficient cash to support the company’s profit growth. The absence of dividend payouts remains a standard feature of the company's current financial policy.