N. Srinivasan Resigns as CEO of Loyal Textile Mills

Jyoti Rathi - Kolkata Bureau Jun 10, 2026 1,650 Views

Loyal Textile Mills Ltd CEO N. Srinivasan has resigned following a difficult fiscal year that saw the company’s net loss widen to ₹64.67 crore. The manufacturer is currently undergoing an asset optimization program to address debt and operational challenges in a volatile international textile market.

Loyal Textile Mills Ltd announced today that N. Srinivasan has resigned from his position as Chief Executive Officer (CEO), effective immediately. The company confirmed the leadership transition in a regulatory filing submitted to the BSE (Bombay Stock Exchange) on June 10, 2026.

Mr. Srinivasan, who assumed the role of CEO on April 1, 2025, stepped down amid a period of significant organizational change for the long-established Indian textile manufacturer. His departure comes less than two weeks after the company’s board of directors met on May 27, 2026, to approve the financial results for the fiscal year ended March 31, 2026, which revealed persistent financial headwinds.

Leadership Transition Amid Financial Restructuring

The resignation marks the latest in a series of management shifts at Loyal Textile Mills as the company attempts to navigate a complex market environment. The textile manufacturer has been actively engaged in an asset optimization program, which involves the monetization of non-core assets, including surplus land and idle plant machinery, to reduce debt and improve liquidity.

According to recent financial disclosures, the company reported a consolidated net loss of ₹64.67 crore for the fiscal year 2026, widening from a loss of ₹46.85 crore in the previous year. The decline in performance has been attributed to several factors, including inventory impairment charges of ₹36.46 crore, largely driven by tariff-related uncertainties and geopolitical tensions impacting key markets in the Gulf Cooperation Council (GCC) region.

Operational Challenges and Future Outlook

The company’s revenue from operations saw a sharp decline to ₹421.96 crore in FY26, down from ₹627.78 crore in FY25. During the same period, the firm initiated the disposal of the SVTM unit and moved to divest its CTM unit, classifying these as discontinued operations in line with Ind AS 105 accounting standards.

While the financial results have been strained, the board has emphasized its commitment to realigning manufacturing operations. Management has expressed a focus on improving capacity utilization and stabilizing the company's financial position through ongoing asset rationalization. The statutory auditors, M/s. Brahmayya & Co., issued an unmodified opinion on the company’s latest financial statements, noting the importance of these turnaround efforts.

Official Sources and Regulatory Disclosures

The announcement regarding the CEO’s resignation was filed with the BSE and NSE (National Stock Exchange) in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations. The company has not yet named a successor to the CEO role, and investors are awaiting further clarity on the long-term leadership roadmap.

Why It Matters

For stakeholders, the departure of the CEO at this juncture underscores the intensity of the operational challenges facing traditional textile firms. As Loyal Textile Mills continues its asset monetization strategy, the market will be looking for signs of a sustainable turnaround in the coming quarters. The company's ability to navigate volatile international tariffs and stabilize its core textile production remains a critical factor for shareholders and analysts monitoring the sector.

Key Facts at a Glance

Management Change: N. Srinivasan has resigned as CEO of Loyal Textile Mills, effective June 10, 2026.
Fiscal Performance: The company reported a net loss of ₹64.67 crore for the fiscal year 2026.
Asset Optimization: The firm is actively disposing of non-core assets, including land and machinery, to improve debt levels.
Market Pressure: Operations were impacted by ₹36.46 crore in inventory impairment charges linked to global market volatility.
Regulatory Status: All financial disclosures and leadership changes have been formally filed with the BSE.

FAQ

Who is replacing N. Srinivasan as CEO?

As of June 10, 2026, the company has not formally announced a successor to the CEO position.

Why is the company reporting a loss?

The company cited inventory impairment charges due to geopolitical developments and tariff uncertainties, alongside a general decline in operational revenue and costs associated with discontinued units.

What is the status of the company's asset optimization program?

Loyal Textile Mills continues to monetize idle assets such as windmills, land, and machinery to strengthen liquidity and reduce overall debt.

Where can I find the official resignation filing?

The formal intimation of the resignation is available on the BSE website under the company’s corporate announcements.