PRECOT - Precot
📢 Recent Corporate Announcements
Precot Limited has appointed Mr. Sathish Kuruppath as its Chief Financial Officer, effective March 31, 2026. Mr. Kuruppath is a Chartered Accountant with over 30 years of experience in managing finance, audit, and commercial operations for large multinationals. He currently serves as the CFO of LuLu Group International's India operations, bringing significant corporate governance experience to Precot. This appointment follows the recommendation of the Nomination and Remuneration Committee and approval by the Audit Committee.
- Appointment of Mr. Sathish Kuruppath as CFO effective March 31, 2026
- Appointee brings over 30 years of experience in financial strategy and P&L oversight
- Currently serves as CFO for LuLu Group International (India Operations)
- Expertise spans across large corporate and multinational organizational structures
Precot Limited has appointed Mr. M Achuth Menon as the Company Secretary and Compliance Officer, effective February 13, 2026. Mr. Menon is a qualified Company Secretary with 6 years of experience in corporate laws and compliance for listed entities. He previously led the secretarial and compliance team at Lotus Eye Hospital and Institute Limited. This appointment fulfills the regulatory requirement for Key Managerial Personnel (KMP) under the Companies Act and SEBI regulations.
- Appointment of Mr. M Achuth Menon as CS and Compliance Officer effective February 13, 2026
- Mr. Menon brings 6 years of experience in Securities Laws and the Companies Act
- Previously served as the head of secretarial and compliance at Lotus Eye Hospital and Institute Limited
- Appointment approved by the Board on February 10, 2026, following NRC recommendation
Precot Limited reported a significant 37.4% year-on-year decline in net profit to ₹5.78 crore for the quarter ended December 31, 2025. Revenue from operations remained relatively flat at ₹200.50 crore compared to ₹203.88 crore in the same quarter last year. Profitability was pressured by a sharp increase in depreciation expenses and a ₹4.81 crore restatement loss on foreign currency borrowings during the nine-month period. The company also completed the appointment of Mr. M Achuth Menon as the new Company Secretary and Compliance Officer.
- Revenue from operations stood at ₹20,049.94 lakhs, down marginally from ₹20,388.42 lakhs YoY.
- Net Profit for the quarter fell to ₹577.69 lakhs compared to ₹923.32 lakhs in the previous year's corresponding quarter.
- Earnings Per Share (EPS) for the quarter decreased to ₹4.81 from ₹7.69 YoY.
- Recognized a restatement loss of ₹481.03 lakhs on foreign-currency borrowings during the nine-month period ended Dec 2025.
- The Hindupur spinning unit remains classified as a discontinued operation following its closure in February 2025 due to unsustainable losses.
Precot Limited reported a significant decline in profitability for the quarter ended December 31, 2025, with net profit falling to ₹5.78 crore from ₹9.23 crore in the same period last year. Revenue from operations remained stagnant at ₹200.50 crore compared to ₹203.88 crore YoY. The company's bottom line was pressured by a restatement loss of ₹4.81 crore on foreign currency borrowings and higher depreciation costs. Additionally, the company is still processing the impact of discontinuing its Hindupur spinning unit to curb long-term losses.
- Net Profit for Q3 FY26 dropped 37.4% YoY to ₹5.78 crore versus ₹9.23 crore in Q3 FY25.
- Revenue from operations stood at ₹200.50 crore, showing a marginal decline of 1.6% YoY.
- Earnings Per Share (EPS) for the quarter decreased to ₹4.81 from ₹7.69 in the previous year's corresponding quarter.
- Recognized a restatement loss of ₹481.03 lakhs on foreign currency borrowings during the nine-month period ended December 2025.
- Appointed Mr. M Achuth Menon as Company Secretary and Compliance Officer effective January 1, 2026.
Precot Limited has responded to a clarification request from the National Stock Exchange regarding recent significant fluctuations in its share price. The company officially stated that all material information and disclosures have been duly intimated to the exchange without delay. Management confirmed that there is no pending Unpublished Price Sensitive Information (UPSI) that could impact the stock price. The company maintains that the recent price volatility is purely driven by market forces and not by any undisclosed internal developments.
- NSE sought clarification via letter Ref. No. NSE/CM/Surveillance/16438 dated February 5, 2026
- Company confirms 100% compliance with all disclosure and regulatory requirements
- Management explicitly denies the existence of any pending Unpublished Price Sensitive Information (UPSI)
- Price movement attributed entirely to market forces rather than corporate actions
Precot Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the period ended December 31, 2025. The certificate, issued by the Registrar and Share Transfer Agent (RTA), MUFG Intime India Private Limited, confirms that all dematerialization requests were processed within the mandated timelines. It further validates that physical security certificates were mutilated and cancelled after verification, and the depositories' names were updated in the register of members. This is a standard regulatory filing ensuring the integrity of the company's shareholding records.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Confirmation provided by Registrar and Share Transfer Agent (RTA), MUFG Intime India Private Limited.
- Securities received for dematerialization were confirmed and listed on the stock exchanges.
- Physical certificates were mutilated and cancelled as per SEBI guidelines within prescribed timelines.
Precot Limited has announced the resignation of Mr. M.K. Ravindra Kumar from the position of Chief Financial Officer (CFO). The resignation is effective from the close of business hours on December 31, 2025. The company cited personal reasons for his departure from this Key Managerial Personnel (KMP) role. Investors should monitor the company's progress in appointing a successor to ensure financial leadership continuity.
- Mr. M.K. Ravindra Kumar resigned as CFO and Key Managerial Personnel of Precot Limited.
- The resignation became effective at the close of business hours on December 31, 2025.
- The official reason provided for the resignation is personal reasons.
- The company is now tasked with identifying a new CFO to oversee its financial strategy and reporting.
Precot Limited has informed the stock exchange that its trading window for dealing in company securities will be closed starting January 1, 2026. This closure is in compliance with SEBI Insider Trading regulations ahead of the declaration of unaudited financial results for the quarter and nine months ending December 31, 2025. The window will remain shut for all designated persons and their relatives until 48 hours after the results are made public. The company has also implemented PAN-level freezing through CDSL to ensure strict compliance with recent SEBI circulars.
- Trading window closure commences on January 1, 2026.
- Applies to the financial results for the quarter and nine months ending December 31, 2025.
- Window to reopen 48 hours after the official declaration of financial results.
- Compliance includes PAN-level freezing at the security level via CDSL as per SEBI circulars dated July 2023 and April 2025.
Financial Performance
Revenue Growth by Segment
Revenue from operations for 9M FY25 grew 2.75% YoY to INR 738.00 Cr. Q3 FY25 revenue grew 9.57% YoY to INR 249.51 Cr. Segment-specific growth percentages were not disclosed in available documents.
Profitability Margins
Gross Margin improved significantly from 36.28% to 43.65% YoY in 9M FY25. Net Margin improved from 0.64% to 3.95% in the same period, driven by better cost management and higher realizations.
EBITDA Margin
EBITDA Margin for 9M FY25 stood at 10.63%, nearly doubling from 5.75% in 9M FY24. Q3 FY25 EBITDA margin was 10.26%, up from 7.80% YoY, reflecting a 31.5% improvement in core operational efficiency.
Credit Rating & Borrowing
Non-current borrowings stood at INR 93.00 Cr as of September 30, 2025. Finance costs for Q3 FY25 were INR 9.01 Cr, representing approximately 3.6% of revenue.
Operational Drivers
Raw Material Costs
Cost of Goods Sold (COGS) for 9M FY25 was INR 415.85 Cr, representing 56.3% of revenue, a decrease from 63.7% in 9M FY24, which directly contributed to the 737 bps expansion in gross margins.
Manufacturing Efficiency
Manufacturing efficiency is reflected in the EBITDA growth of 90.1% YoY (to INR 78.47 Cr) on a modest revenue growth of 2.75%, indicating high operational leverage.
Strategic Growth
Growth Strategy
The company is achieving growth through aggressive margin expansion and cost optimization. EBITDA grew 90.1% YoY in 9M FY25 while employee costs grew only 14.4% (to INR 77.80 Cr), demonstrating a strategy focused on operational efficiency and higher-value product mix.
Products & Services
Yarn and textile products.
Brand Portfolio
Precot.
Strategic Alliances
Suprem Associates is a 99.88% owned partnership firm subsidiary with total assets of INR 24.22 Cr as of September 2025.
External Factors
External factors analysis not yet available for this company.
Regulatory & Governance
Industry Regulations
Operations are subject to SEBI Listing Obligations and Disclosure Requirements (Regulation 33), as confirmed by the independent auditor's review reports.
Taxation Policy Impact
The effective tax rate for 9M FY25 was approximately 26.5%, with tax expenses of INR 10.53 Cr on a Profit Before Tax of INR 39.67 Cr.
Risk Analysis
Key Uncertainties
Key risks include the financial impact of discontinued operations, which resulted in a loss of INR 3.81 Cr in Q2 FY26, and the high sensitivity of margins to raw material cost fluctuations (COGS at 56% of revenue).