Tax pressures intensify Lakshmi Mills’ annual deficit

South India-based legacy textile manufacturer Lakshmi Mills reported an increase in net loss of Rs 15.55 crore for FY26, aggravated by a sharp rise in tax liabilities. Despite showing sequential operational resilience in its core segments, the steep fiscal burden overshadowed revenue gains from its staple fiber, spun yarn, and woven fabric divisions.  Characterized by volatile raw material costs and tightening international margins, industry headwinds continue to challenge traditional spinning mills across the domestic market. Corporates say, while production efficiencies have improved output quality, extraordinary tax outflows severely impact bottom-line recovery.

Dealing with cost inflation requires strict operational discipline, yet tax adjustments have temporarily stalled the company’s net profits, say finance executives closely monitoring the audit. To counteract these pressures, they are increasing modernization initiatives at its Coimbatore production lines to enhance high-margin specialty yarn offerings. Analysts add, resolving legacy overheads and optimizing supply chain logistics will remain critical for restoring sustained financial health across upcoming quarters.

The Lakshmi Mills Company manufactures high-quality textile yarn and woven fabrics, operating primarily across domestic and export apparel markets with targeted growth in specialized industrial textiles. Established in 1910, the historical Coimbatore-based firm targets steady operational expansion despite current fiscal headwinds.