Winsome Yarns reported a net loss of Rs 3.32 crore for the June 2026 quarter as the company continues to implement its NCLT-approved resolution plan. Mohini Health & Hygiene Limited is leading the Rs 162.90 crore resolution process. The firm is currently operating from a new location in Mohali following the vacation of its previous registered office and is managing an insurance claim for a Rs 59 lakh theft at its Dera Bassi unit.
Winsome Yarns Q1 Loss at Rs 3.32 Crore Amid CIRP
Loss narrows marginally year-on-year; resolution plan implementation is currently under supervision by a Monitoring Committee.
Reader Takeaway: Resolution plan worth Rs 162.90 crore is active, though auditors highlight significant ongoing financial and operational concerns.
What just happened
Winsome Yarns released its financial results for the quarter ended June 30, 2026, reporting a loss of Rs 3.32 crore compared to a loss of Rs 3.28 crore in the same period last year. Revenue from operations was nil, reflecting the ongoing insolvency process. The NCLT Chandigarh Bench approved a Rs 162.90 crore resolution plan by Mohini Health & Hygiene Limited on April 16, 2026, which is now in the implementation phase.
Why this matters
The company is transitioning under the Corporate Insolvency Resolution Process (CIRP). The board remains suspended, and management duties are handled by a Monitoring Committee. The implementation of this resolution plan will dictate the future capital structure and debt obligations of the entity.
Risks to watch
Auditors have issued a qualified opinion, flagging the company's negative net worth and lack of provisions for interest and penalties on existing borrowings. Additionally, balances for receivables and payables remain unconfirmed, and the company is navigating the aftermath of a Rs 0.59 crore theft at its Dera Bassi facility, for which an insurance claim is pending.
What changes now
Operations have shifted to a knitting unit in Mohali after the Chandigarh Administration vacated the company’s previous registered office in December 2024. Investors should track the progress of the Monitoring Committee in executing the debt resolution and clearing pending audit qualifications.
Context metrics
Total revenue for Q1 FY27 stood at Rs 0.37 crore, largely comprising other income, down from Rs 0.48 crore in Q1 FY26. Total expenses for the quarter were Rs 3.69 crore.