Maral Overseas Limited, part of the LNJ Bhilwara Group, has announced its audited financial results for the quarter and financial year ended March 31, 2026. The company also approved a strategic investment in renewable energy through acquisition of a stake in a solar power project aimed at reducing energy costs and increasing sustainability.

The company informed stock exchanges that its Board of Directors approved the financial results, appointment of internal and cost auditors, and investment in a 15 MW solar power project during the board meeting held on May 07, 2026.

One of the key highlights of the announcement was the company’s return to profitability in FY26 after reporting losses in FY25. Despite lower revenues compared to the previous year, Maral Overseas managed to improve operational efficiency and strengthen profitability in some of its core textile segments.

Maral Overseas Returns to Profit in FY26

Maral Overseas reported a net profit of ₹3.26 crore for FY26 compared to a net loss of ₹24.19 crore in FY25.

This turnaround marks a major improvement for the textile company, especially considering the continued pressure on the textile and garment sectors due to demand fluctuations, global market challenges, and rising operational costs.

The company’s total income for FY26 stood at ₹1,004.24 crore, compared to ₹1,069.60 crore in FY25.

Although annual revenue declined, profitability improved due to better operational efficiencies, lower losses in certain business segments, and stronger segment performance in yarn and fabric operations.

FY26 Key Financial Highlights

• Revenue from Operations: ₹980.87 crore
• Total Income: ₹1,004.24 crore
• Profit After Tax: ₹3.26 crore
• FY25 Net Loss: ₹24.19 crore
• Basic EPS: ₹0.79

The company’s performance reflects a recovery in operational stability despite ongoing sectoral challenges.

Strong Q4 FY26 Performance

Maral Overseas posted a particularly strong performance during the March quarter.

For Q4 FY26:

• Revenue from Operations: ₹258.22 crore
• Total Income: ₹268.03 crore
• Profit Before Tax: ₹11.22 crore
• Profit After Tax: ₹13.31 crore

This was a major improvement compared to Q4 FY25, when the company had reported losses.

The improvement indicates stronger execution, operational recovery, and improved contribution from core textile businesses.

Segment-Wise Business Performance

Maral Overseas operates across three major business segments:

• Yarn
• Fabric
• Garment

Each segment showed different performance trends during FY26.

Yarn Segment Performs Strongly

The Yarn division remained the strongest contributor to profitability.

FY26 Yarn Segment Highlights

• Revenue: ₹680.96 crore
• Segment Profit: ₹33.37 crore

The yarn business showed improved profitability compared to FY25 due to operational efficiencies and better margins.

The segment continued to contribute significantly to the company’s overall financial recovery.

Fabric Division Also Improves

The Fabric segment delivered stable growth and stronger profitability during FY26.

Fabric Segment Highlights

• Revenue: ₹314.84 crore
• Segment Profit: ₹18.65 crore

The segment benefited from improved cost management and better utilization levels.

Garment Business Remains Under Pressure

The Garment division continued to face operational challenges.

Garment Segment FY26

• Revenue: ₹190.07 crore
• Segment Loss: ₹10.15 crore

Although losses narrowed compared to FY25, the garment business still remained under pressure due to global demand conditions and margin challenges.

The company may continue focusing on operational restructuring and efficiency improvements in this division.

Company Approves 15 MW Solar Power Project

One of the biggest strategic announcements from Maral Overseas was the approval of investment in a 15 MW solar power plant under the group captive model.

The company approved acquisition of a 26% equity stake in Asawata Energy Private Limited, a Special Purpose Vehicle (SPV) incorporated for developing the solar power project.

Investment Details

• Target Entity: Asawata Energy Private Limited
• Stake Acquired: 26%
• Investment Amount: ₹2.60 lakh
• Remaining Stake Holder: Pickrenew Energy Limited (74%)
• Project Size: 15 MW Solar Power Plant

The solar project will be set up at the company’s Sarovar Plant under the Group Captive Model regulated by the Madhya Pradesh Electricity Regulatory Commission.

Why the Solar Project Matters

Energy costs are among the most important operational expenses for textile companies. Power consumption in spinning, weaving, dyeing, and garment manufacturing is extremely high.

By investing in renewable energy infrastructure, Maral Overseas aims to:

• Reduce electricity costs
• Improve energy efficiency
• Increase renewable energy usage
• Enhance sustainability profile
• Improve long-term operational competitiveness

The company stated that the investment is intended to optimize power costs and increase the share of renewable energy in overall energy consumption.

Group Captive Model Explained

The project will operate under the Group Captive Model, where the power consumer acquires an ownership stake in the power generation entity.

This model allows industrial users to:

• Access cheaper renewable power
• Reduce dependency on grid electricity
• Achieve sustainability goals
• Improve energy security

Maral Overseas plans to execute a long-term Power Purchase Agreement (PPA) for procurement of solar power from the project.

The acquisition is expected to be completed within three months, subject to agreements and regulatory compliances.

About Asawata Energy Private Limited

Asawata Energy Private Limited is a newly incorporated company and subsidiary of Pickrenew Energy Limited.

The company was incorporated on:

April 20, 2026

Its primary objective is:

• Solar power generation
• Development and operation of renewable energy projects

The company currently has:

• Equity capital of ₹10 lakh
• No turnover yet, since it is newly formed

The SPV will specifically operate the 15 MW solar project for Maral Overseas.

Textile Industry Continues Facing Challenges

The textile industry in India has witnessed multiple challenges during the past two years, including:

• Weak export demand
• Global slowdown
• Rising input costs
• Competitive international pricing
• Currency fluctuations
• High energy costs

Despite these challenges, companies focusing on operational efficiency and cost optimization have managed to improve performance.

Maral Overseas’ FY26 results reflect signs of stabilization and gradual recovery.

Impact of New Labour Codes

The company also disclosed the impact of India’s new labour regulations.

Effective November 21, 2025, the Government of India consolidated multiple labour laws into four new labour codes.

According to the company:

• The new labour codes increased employee benefit provisions
• Maral Overseas recognized an estimated impact of ₹59.83 lakh
• This amount was treated as an exceptional item during FY26

The company stated that further impact may arise once detailed implementation rules are notified by governments.

Cash Flow Position Improves

The company’s cash flow from operating activities improved during FY26.

Operating Cash Flow

• FY26 Operating Cash Flow: ₹89.58 crore
• FY25 Operating Cash Flow: ₹75.87 crore

Improved cash generation reflects better working capital management and operational improvements.

Debt Position and Financial Structure

Maral Overseas also showed changes in its borrowing structure.

Non-Current Borrowings

• FY26: ₹102.49 crore
• FY25: ₹146.88 crore

Current Borrowings

• FY26: ₹238.82 crore
• FY25: ₹268.64 crore

The reduction in borrowings indicates efforts to improve financial discipline and manage debt obligations.

Preference Shares Issued

The company also issued:

₹30 crore Non-Convertible Redeemable Preference Shares

during FY26.

This helped strengthen the capital structure and support financing requirements.

Auditors Issue Unmodified Opinion

The company’s statutory auditor, S S Kothari Mehta & Co. LLP, issued an unmodified audit opinion on the FY26 financial statements.

An unmodified opinion means:

• Financial statements present a true and fair view
• No material audit qualification exists
• Accounting standards have been properly followed

This is considered a positive sign from a corporate governance and compliance perspective.

Internal Auditors Appointed

The Board approved appointment of:

• BGJC & Associates LLP for Sarovar Division
• Agarwal & Saxena LLP for Garment Division

as internal auditors for FY27.

Both firms are experienced chartered accountancy firms with extensive expertise in audit, advisory, taxation, and corporate governance services.

Cost Auditor Appointment

Maral Overseas also appointed:

K.G. Goyal & Co.

as the Cost Auditor for FY27.

The firm has significant experience in conducting cost audits across sectors including:

• Textiles
• Cement
• Power
• Metals
• Petroleum
• Mining

Renewable Energy Becoming Important for Textile Industry

The company’s solar investment reflects a broader trend within the textile sector.

Textile companies are increasingly investing in:

• Solar power
• Wind energy
• Captive renewable projects
• Energy-efficient machinery
• Sustainability initiatives

This shift is driven by:

• Rising electricity costs
• ESG expectations
• Export market sustainability standards
• Environmental regulations

Renewable energy adoption also improves competitiveness in international markets where sustainability compliance is increasingly important.

Operational Efficiency Focus Continues

Maral Overseas appears focused on improving:

• Cost management
• Energy efficiency
• Working capital optimization
• Segment profitability
• Debt reduction

These measures are critical for textile manufacturers operating in a highly competitive environment.

Investors Likely to Monitor Key Areas

Following the FY26 announcement, investors are likely to monitor:

• Sustainability of profitability recovery
• Performance of garment division
• Benefits from solar power project
• Debt reduction progress
• Export demand trends
• Raw material price movements
• Energy cost savings from renewable power

The company’s ability to sustain profitability improvement will remain a major focus area.

Outlook for FY27

The outlook for Maral Overseas may depend on several factors:

Positive Factors

• Renewable energy savings
• Improved yarn segment performance
• Better operational efficiency
• Reduced financing pressure
• Stabilizing domestic demand

Key Risks

• Weak global textile demand
• Cotton price volatility
• Export uncertainties
• Currency fluctuations
• Rising labour costs

The solar power initiative could become a long-term strategic advantage if energy costs remain elevated.

About Maral Overseas Limited

Maral Overseas Limited is a textile manufacturing company engaged in:

• Yarn manufacturing
• Fabric production
• Garment manufacturing

The company is part of the LNJ Bhilwara Group, one of India’s established industrial groups with interests across textiles, power, and other sectors.

The company operates manufacturing facilities at:

Maral Sarovar, Madhya Pradesh

and serves domestic as well as export markets.

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