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Nahar Spinning Mills Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤7th Feb 26

Summary : Nahar Spinning Mills reported increased quarterly losses but reduced nine-month losses, facing new labor code uncertainties.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of materials consumed: Q3 FY26 - 49737.98 Lakhs; 9M FY26 - 158051.21 Lakhs.
  2. Employee benefits expense: Q3 FY26 - 8097.79 Lakhs; 9M FY26 - 24085.76 Lakhs.
  3. Power & Fuel: Q3 FY26 - 7407.21 Lakhs; 9M FY26 - 22861.96 Lakhs.
  4. Depreciation and amortisation expense: Q3 FY26 - 2277.25 Lakhs; 9M FY26 - 6885.27 Lakhs.
  5. Finance Cost: Q3 FY26 - 1296.08 Lakhs; 9M FY26 - 4156.43 Lakhs.
  6. Other expenses: Q3 FY26 - 5871.13 Lakhs; 9M FY26 - 20040.26 Lakhs.
  7. Revenue from operations: Q3 FY26 - 70255.82 Lakhs; 9M FY26 - 230110.73 Lakhs.
  8. Other income: Q3 FY26 - 409.85 Lakhs; 9M FY26 - 951.42 Lakhs.
  9. Paid-up equity share capital (Face Value Rs. 5/- each): 1803.27 Lakhs.
  10. Reserves excluding revaluation reserves: 0.00 Lakhs (current period), 147131.14 Lakhs (previous year end).
  11. Standalone un-audited financial results.
  12. Company does not have any Subsidiary/Associate/Joint Venture Company.

Corporate Overview

  1. India (Registered office in Ludhiana, Gurugram office)
  2. Reported a loss for the quarter and nine months ended December 31, 2025.
  3. Revenue from operations declined compared to previous periods.
  4. The Company operates in a single segment: Textiles.
  5. Formal and factual, submitting un-audited financial results.
  6. Textiles

Risk Factors

  1. Declining revenue from operations.
  2. Increased quarterly net losses.
  3. Uncertainty from new labor codes.
  4. Volatile material and fuel costs.

Key Drivers

  1. Reduced nine-month period losses.
  2. Potential benefits from new labor codes.
  3. Future textile market demand recovery.
  4. Enhanced operational cost management.

Auditor’s Report

  1. Limited Review Report
  2. Auditors do not express an audit opinion.
  3. Nothing came to the auditor's attention to suggest material misstatement or non-disclosure in the unaudited financial results.

Board Commentary

  1. Incremental financial impact arising from changes in Labour Codes on employee benefits expenses.
  2. Government of India consolidated 29 existing labour legislations into four new Labour Codes (Code on Wages, Code on Social Security, Industrial Relations Code, Occupational Safety, Health and Working Conditions Code) effective November 21, 2025.

Corporate Governance

  1. Financial results reviewed by Audit Committee.
  2. Approved and taken on record by the Board of Directors.

Management Discussion & Analysis

Future Strategy

  1. Monitoring developments pertaining to new Labour Codes.

Operational Focus Areas

  1. Evaluating the impact of new Labour Codes on employee benefits and liabilities.

Performance Drivers

  1. Cost of materials consumed is a major expense component.
  2. Employee benefits, power & fuel, and finance costs are significant expenses.

Risk Control Measures

  1. Company continues to monitor developments and evaluate impact of Labour Codes.

Critical Risks

  1. Potential financial impact from new consolidated Labour Codes (Code on Wages, Code on Social Security, Industrial Relations Code, Occupational Safety, Health and Working Conditions Code).