Jattashankar Industries Ltd (514318)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Jattashankar Industries' revenue was ₹35.8 Cr, and net profit ₹0.9 Cr (+734.8% year on year); the operating margin was 3.5%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹35.8 | — | -51.2% |
| Operating profit | ₹1.2 | from loss | +148.7% |
| Net profit | ₹0.9 | +734.8% | +61.1% |
| EPS (₹) | 2.09 | +736.0% | +60.8% |
| Operating margin | 3.5% | — | — |
📢 Recent Corporate Announcements
Jattashankar Industries Ltd has scheduled a meeting of its Board of Directors for September 2, 2026, to consider and approve a proposal for the sub-division/split of the company's equity shares. The stock is currently trading at Rs 518.0 with a market capitalization of Rs 227 Cr. Any approved stock split proposal will be subject to shareholder and statutory approvals.
- Board of Directors meeting scheduled for Wednesday, September 2, 2026
- Agenda item: Consider and approve sub-division/split of equity shares
- Proposal will be subject to shareholder and regulatory approvals
- Current stock price stands at Rs 518.0 with a market cap of Rs 227 Cr
Jattashankar Industries has confirmed that there were no deviations in the utilization of ₹23.14 crore raised through a preferential issue of convertible warrants for the quarter ended June 30, 2026. The funds were raised through multiple allotments between June 20 and June 30, 2026, with the largest single tranche amounting to ₹6.90 crore. The Audit Committee reviewed and approved the statement on August 13, 2026, confirming that funds are being used as per the original objects of the issue. This filing is a routine but necessary regulatory disclosure to ensure transparency in capital deployment.
- Total amount raised through preferential issue of convertible warrants is ₹23,14,41,985
- Largest single allotment tranche of ₹6,90,00,000 occurred on June 23, 2026
- Zero deviation or variation reported in the utilization of funds for the quarter ended June 30, 2026
- Funds were raised across six distinct tranches/dates in the final 10 days of June 2026
- Audit Committee and Board took the statement on record on August 13, 2026
Jattashankar Industries reported a net profit of Rs 0.92 Cr for Q1 FY27, a significant improvement from Rs 0.11 Cr in the same quarter last year. Revenue for the quarter stood at Rs 35.78 Cr, primarily driven by the purchase and sale of traded goods as the company has discontinued its own manufacturing operations. During the quarter, the company successfully raised Rs 23.14 Cr through the allotment of convertible warrants to both promoter and non-promoter groups. This capital infusion is being utilized to scale the new trading-focused business model, with Rs 21.37 Cr already deployed for working capital.
- Net Profit grew to Rs 0.92 Cr in Q1 FY27 from Rs 0.11 Cr in Q1 FY26.
- Revenue reached Rs 35.78 Cr, a sharp recovery from zero operational revenue in the year-ago quarter.
- Raised Rs 23.14 Cr through multiple tranches of convertible warrants in June 2026.
- Utilized Rs 21.37 Cr for working capital requirements out of a total planned allocation of Rs 60.00 Cr.
- Basic EPS improved to Rs 2.09 for the quarter compared to Rs 0.25 YoY.
Jattashankar Industries reported a significant turnaround in Q1 FY27, with revenue reaching ₹35.78 Cr compared to zero in the same quarter last year. Net profit rose to ₹0.92 Cr from ₹0.11 Cr YoY, reflecting the company's transition to a trading-led business model following the sale of its manufacturing assets. The company also confirmed the successful raising of ₹23.14 Cr through convertible warrants in June 2026, which is approximately 122% of its previous net worth. Most of these funds (₹21.37 Cr) have already been deployed toward working capital requirements.
- Revenue from operations surged to ₹35.78 Cr in Q1 FY27 from nil in Q1 FY26.
- Net profit increased to ₹0.92 Cr, representing a 745% growth over the ₹0.11 Cr reported in the previous year's quarter.
- Raised ₹23.14 Cr through the allotment of convertible equity share warrants to promoters and non-promoters in June 2026.
- Utilized ₹21.37 Cr of the raised funds for working capital, leaving ₹1.75 Cr unutilized as of June 30, 2026.
- Purchase of traded goods stood at ₹43.90 Cr for the quarter, confirming the shift to an asset-light trading model.
Jattashankar Industries has scheduled a board meeting for August 13, 2026, to approve unaudited financial results for the quarter ended June 30, 2026. This follows a volatile period where the company reported FY26 revenue of ₹129 Cr, a significant jump from ₹8.0 Cr in FY25, despite selling its manufacturing assets for ₹1.01 Cr. The company is currently undergoing a management transition via an open offer for a 26% stake at ₹60 per share. Investors will be looking for consistency in revenue and improvement in the thin 0.4% operating margin.
- Board meeting scheduled for August 13, 2026, to consider Q1 FY27 results.
- Trading window has been closed since July 1, 2026, as per SEBI regulations.
- Company reported a sharp revenue increase to ₹129 Cr in FY26 from ₹8.0 Cr in FY25.
- Operating margins remain critical at 0.4% following the sale of plant and machinery for ₹1.01 Cr.
- Ongoing transition involves an open offer for 11,40,646 equity shares at ₹60 per share.
Financial Performance
Revenue Growth by Segment
The company reported limited income in FY 2024-25 due to the discontinuance of operational activities; however, it recorded a related party sale of goods to Sunrise Colours Limited amounting to INR 7.69 Cr.
Geographic Revenue Split
Not disclosed in available documents, though the company operates from Mumbai, Maharashtra and Ahmedabad, Gujarat.
Profitability Margins
Profitability was severely impacted by a loss of INR 80.76 Lakhs (approx. 44% loss against book value) on the sale of plant and machinery valued at INR 101.14 Lakhs.
EBITDA Margin
Not disclosed in available documents due to the discontinuance of manufacturing operations during the fiscal year.
Capital Expenditure
The company underwent a divestment rather than expansion, selling its plant and machinery for INR 1.01 Cr during FY 2024-25.
Credit Rating & Borrowing
The company has not been sanctioned working capital limits in excess of INR 5 Cr from banks or financial institutions.
Operational Drivers
Raw Materials
Polyester yarns (used for texturising, twisting, and dyeing) represent the primary raw material, though specific cost percentages are not disclosed due to operational shutdown.
Capacity Expansion
Current capacity is effectively zero as the company sold its plant and machinery for INR 1.01 Cr in FY 2024-25, resulting in the discontinuance of operational activities.
Raw Material Costs
Not disclosed in available documents for the current period due to the cessation of manufacturing.
Manufacturing Efficiency
Manufacturing efficiency is currently non-existent as operations have been discontinued.
Strategic Growth
Growth Strategy
Growth is contingent on the successful completion of the open offer by Tarunkumar Gunvantlal Patel and others to acquire up to 72.55% (31,82,900 shares) and an additional 26% (11,40,646 shares) of the company. The new promoters may inject capital or pivot the business model following the total sale of previous plant and machinery.
Products & Services
Processed polyester yarns including texturised, twisted, high bulk, and dyed yarns used for shirting, suiting, upholstery, and narrow woven fabrics.
Brand Portfolio
Jattashankar Industries.
Strategic Alliances
The company maintains a significant related party relationship with Sunrise Colours Limited, involving sales of INR 7.69 Cr in FY 2024-25.
External Factors
Industry Trends
The man-made fiber and textile industry is subject to fluctuating demand for processed yarns; however, the company is currently positioned as a shell or asset-light entity following its divestment of machinery.
Competitive Landscape
The company operates in the highly competitive man-made fiber industry, though it is currently non-operational.
Competitive Moat
The company currently lacks a sustainable manufacturing moat as it has sold its core production assets and discontinued operations.
Macro Economic Sensitivity
The company notes sensitivity to economic conditions affecting demand/supply in the textile industry and changes in government tax laws.
Consumer Behavior
Demand is driven by the garment and upholstery sectors (shirting, suiting, curtains).
Regulatory & Governance
Industry Regulations
Compliance is required under the Factories Act 1948, Electricity Act 2003, and Energy Conservation Act 2001.
Environmental Compliance
The company is required to comply with the Environment Protection Act, 1986 and Water/Air Pollution Acts, though its current non-operational status reduces immediate environmental impact.
Taxation Policy Impact
The company is subject to standard Indian corporate tax laws and Ind AS accounting standards.
Legal Contingencies
The company has disclosed the impact of pending litigations in its financial statements, but specific case values in INR are not provided in the available documents.
Risk Analysis
Key Uncertainties
The primary uncertainty is the future business direction under new promoters following the 72.55% stake acquisition and the lack of existing manufacturing infrastructure.
Geographic Concentration Risk
Operations were primarily centered in Mumbai and Gujarat.
Third Party Dependencies
High dependency on related party Sunrise Colours Limited for historical revenue (INR 7.69 Cr).
Technology Obsolescence Risk
The company was flagged for non-compliance with Rule 3(1) of the Companies (Accounts) Rules, 2014, for failing to use accounting software with an audit trail feature.
