Loyal Textile Mills, a textile exporter and manufacturer, reported a net loss of Rs 66.21 crore (US $6.96 million) in FY26, widening from a loss of Rs 54.68 crore (US $5.75 million) in the previous financial year, as the company undertook a restructuring programme to exit low-margin and non-viable product lines.
The company’s financial performance was impacted by restructuring costs, inventory revaluation and under-utilisation of manufacturing capacity during the business realignment.
Revenue from operations declined 32.8% to Rs 421.96 crore (US $44.36 million) in FY26, compared with Rs 627.78 crore (US $6.60 million) in FY25. Despite the sharp fall in revenue, the company reduced its EBITDA loss to Rs 4.35 crore (US $0.46 million), from a loss of Rs 34.05 crore (US $3.58 million) a year earlier, indicating an improvement in operating performance following the restructuring measures.
Interest expenses also declined to Rs 32.77 crore (US $3.45 million) in FY26 from Rs 50.96 crore (US $5.36 million) in FY25. However, the improvement at the operating level was not enough to offset the impact of restructuring-related costs and other items, resulting in a wider net loss.
The restructuring programme led to a significant reduction in production volumes. Yarn production fell to 39.20 lakh kg from 103.47 lakh kg, while woven fabric production declined to 103.22 lakh metres from 218.86 lakh metres in FY25. The company’s export revenue also dropped to Rs 270 crore (US $28.39 million) from Rs 384 crore (US$40.39 million), with geopolitical developments and supply-chain disruptions in the Middle East affecting overseas business.
The company said the major phase of its restructuring programme, initiated in FY25, was completed during the year. The strategy focused on consolidating operations and moving away from businesses and product categories that were not considered commercially viable.
Loyal Textile Mills has scheduled its 80th Annual General Meeting (AGM) for September 22, 2026, which will be conducted through video conferencing. Shareholders will consider and adopt the company’s audited standalone and consolidated financial statements for the financial year ended March 31, 2026.
The AGM agenda also includes several corporate governance matters. These include the re-appointment of Vishala Ramswami as a Non-Executive Director, who retires by rotation, and the re-appointment of M. E. Manivannan as Whole Time Director for a five-year term beginning February 11, 2027.
Shareholders will also consider the appointment of Dr. R Subrahmaniya Sivam as an Independent Director for a five-year term and the ratification of remuneration of Rs 1 lakh (US $1,052) plus applicable taxes for Cost Auditor B. Venkateswar for FY27.
