Loyal Textile Mills Faces Financial Challenges Amidst Mixed Market Performance

Loyal Textile Mills, a microcap player in the Garments & Apparels industry, has recently undergone a financial trend adjustment, reflecting a flat performance for the quarter ending September 2025. The company's financial metrics indicate a notable operating cash flow of Rs 147.98 crore, alongside a debt-equity ratio of 1.37 times, which is the lowest recorded in the first half of the year. Additionally, the company reported a highest quarterly profit after tax (PAT) of Rs -11.85 crore and cash and cash equivalents reaching Rs 25.90 crore.
However, challenges persist for Loyal Textile. The latest six-month PAT stands at Rs -33.44 crore, reflecting a decline of 36.55%. Furthermore, net sales for the quarter were recorded at Rs 106.54 crore, marking the lowest figure in recent times. The dividend payout ratio is also at a low of 0.00%.

In terms of market performance, Loyal Textile's stock has shown mixed results compared to the Sensex. Over the past week, the stock returned 6.3%, significantly outperforming the Sensex's 1.61%. However, on a year-to-date basis, the stock has declined by 26.65%, while the Sensex has gained 9.63%. This juxtaposition highlights the ongoing challenges faced by Loyal Textile amidst a fluctuating market landscape.