Cheviot Weaves Higher Sales But Slips Into Q4 Loss, Still Pays Out Rs 25 Dividend

Cheviot Company Limited has released its audited standalone financial results for the quarter and year ended 31 March 2026. The Kolkata-headquartered jute manufacturer saw robust demand support revenue growth but faced margin compression in Q4 FY26, underlining the volatility in input prices and financial markets for specialised textile players.  

March Quarter Performance Overview  

For Q4 FY26, revenue from operations stood at Rs 14,060.84 lakh (Rs 1.41 billion), up year-on-year. The company, however, reported a net loss of Rs 905.39 lakh (Rs 90.5 million), driven by higher material costs, elevated operating expenses and negative other income linked to fair value changes in investments.  

Full-Year Fy26 Numbers And Profitability  

For FY26, Cheviot posted revenue from operations of Rs 54,740.51 lakh, compared with Rs 43,942.61 lakh in FY25, with total income rising to Rs 54,983.25 lakh. Profit after tax for the year stood at Rs 5,169.15 lakh versus Rs 5,774.19 lakh in the previous year, reflecting cost inflation and investment-related impacts despite strong topline growth.  

Dividend, Cash Flows And Balance Sheet  

The Board has recommended a final dividend of Rs 25 per ordinary share of face value Rs 10, aggregating to Rs 1,460.47 lakh, subject to shareholder approval at the AGM on 6 August 2026. Cheviot remains conservatively financed, with total equity of Rs 70,585.10 lakh as of 31 March 2026, and generated operating cash flow of Rs 4,171.68 lakh, supporting both capex and shareholder returns.  

Jute Segment Focus And Operational Factors  

Cheviot operates as a single-segment jute goods business with no subsidiaries, associates or joint ventures. Management highlighted the impact of higher raw jute prices, increased employee benefit costs under the new labour codes, and losses on fair valuation of investments on Q4 results, even as long-term demand for eco-friendly jute products underpins the company’s strategic positioning.  

Key Highlights  

• Q4 FY26 revenue from operations: Rs 14,060.84 lakh  
• Q4 FY26 net loss: Rs 905.39 lakh  
• FY26 revenue from operations: Rs 54,740.51 lakh  
• FY26 profit after tax: Rs 5,169.15 lakh  
• Proposed final dividend: Rs 25 per share, Rs 1,460.47 lakh total  
• Total equity as on 31 March 2026: Rs 70,585.10 lakh  
• FY26 operating cash flow: Rs 4,171.68 lakh  
• Business focus: single jute goods segment  

Sources: Cheviot Company Limited's Disclosure to the Stock Exchange