Announced Wed, 27 May · 17:44 IST

Board Meeting Outcome for Outcome Of Board Meeting held on 27th May, 2026 at the registered office of the Company

Revenue Growth 20pctPat NegativeEbitda Margin CompressionNegative Operating CashflowResults View source PDF

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AI summary

Euro Leder Fashion Ltd reported FY2025-26 results with total income of ₹2,970.14 lakhs, up 46.7% from ₹2,024.73 lakhs in FY2024-25. However, net profit declined sharply to ₹1.79 lakhs from ₹19.44 lakhs in the prior year - a drop of about 91%. EPS fell from ₹0.50 to ₹0.05. The board attributed this primarily to a ₹78.94 lakh additional gratuity and leave liability recognition due to new labour code implementation. Operating cash flow remained positive at ₹205.58 lakhs though down from ₹444.69 lakhs previously. The meeting also approved reappointment of Managing Director RM Lakshmanan for 5 years and Independent Director Ravindran Varadarajan for a second term, along with appointment of new internal auditor K. Anand. Auditors issued an unmodified opinion.

Likely market impact

Despite strong revenue growth, the 91% profit decline and significantly compressed EPS signal serious profitability concerns for shareholders. The large one-time employee liability charge due to labour code changes is a non-recurring item that may partially recover in future years. The company remains cash-flow positive, but the gap between revenue growth and bottom-line performance needs monitoring.