Raghuvir Synth - Raghuvir Synth

📊 BSE: 514316 🏢 Other Textile Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single textile segment. Standalone total income grew 38.07% YoY, rising from INR 243.99 Cr in FY24 to INR 336.88 Cr in FY25. Consolidated total income grew 37.84% YoY to INR 336.70 Cr.

Geographic Revenue Split

Not specifically disclosed in percentage terms, but the company is actively shifting focus toward global export opportunities to complement its existing domestic job work business.

Profitability Margins

Net Profit Margin improved by 50%, increasing from 2% in FY24 to 3% in FY25. Standalone Profit After Tax (PAT) surged 91.09% to INR 9.06 Cr from INR 4.74 Cr in the previous year.

EBITDA Margin

Profit before Depreciation and Taxes (PBDT) grew 36.30% YoY to INR 17.51 Cr in FY25 from INR 12.85 Cr in FY24. The PBDT margin stood at 5.20% of total income.

Capital Expenditure

The company is making strategic investments in capacity building and installed machineries to improve quality and reduce costs, though specific INR Cr figures for planned FY26 capex are not disclosed.

Credit Rating & Borrowing

The Debt-Equity ratio improved significantly by 26.62%, falling from 1.39 in FY24 to 1.02 in FY25. The Interest Coverage Ratio strengthened to 3.90, indicating improved ability to service debt from operating profits.

⚙️ Operational Drivers

Raw Materials

Cotton is the predominant raw material used in the textile sector, representing the largest component of the INR 319.37 Cr operating and administrative expenses.

Import Sources

Not specifically disclosed, though the company monitors global commodity prices and government policies in other countries that impact cotton availability.

Key Suppliers

Not disclosed; however, the company emphasizes maintaining strong, long-term relationships with vendors to ensure timely availability of raw materials.

Capacity Expansion

The company is utilizing installed machineries for cost diminution and quality improvement. It aims to leverage the government's plan for seven mega textile parks to achieve manufacturing scale.

Raw Material Costs

Raw material costs are subject to erratic price movements of cotton. The company manages this through vendor relationships and by monitoring government measures intended to soften cotton prices.

Manufacturing Efficiency

The company focuses on optimum utilization of resources and cost diminution through technology to remain competitive against low-cost imports.

Logistics & Distribution

The company is leveraging strategic partnerships with stakeholders to offer competitive rates globally as it expands its export footprint.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

The company is transitioning from a job-work-only model to direct exports to capture higher margins. It plans to utilize the 'plug and play' model of upcoming mega textile parks to build manufacturing competitiveness and scale. Growth will be supported by the National Manufacturing Mission and export promotion policies.

Products & Services

Textile products including processed fabrics and apparel, offered through both job work services and direct export sales.

Brand Portfolio

Raghuvir Synthetics Limited.

New Products/Services

Expansion into export-oriented textile lines to diversify revenue streams away from pure job work.

Market Expansion

Targeting global markets for textile exports while maintaining domestic job work operations to maximize capacity utilization.

Market Share & Ranking

The Indian textile industry accounts for 3.91% of global trade; the company is positioning itself to capture a larger share of this through export initiatives.

Strategic Alliances

Strategic partnerships with stakeholders across the supply chain to leverage economies of scale and offer competitive global rates.

🌍 External Factors

Industry Trends

The Indian textile market is growing at a 7% CAGR, reaching USD 147 Billion in FY25. The industry is shifting toward technical textiles and mega-park-based manufacturing to enhance global competitiveness.

Competitive Landscape

Faces intense competition from low-cost international imports and a fragmented domestic textile sector.

Competitive Moat

The moat is built on economies of scale, strategic vendor partnerships, and technology adoption. Sustainability depends on maintaining cost leadership in a commodity-sensitive market.

Macro Economic Sensitivity

Sensitive to global economic growth (forecasted at 2.8% for 2025) and domestic GDP, where textiles contribute approximately 2.3%.

Consumer Behavior

Not specifically detailed, though the industry is moving toward value-added segments and technical textiles.

Geopolitical Risks

Trade policies in other countries and the potential for low-cost imports are identified as significant risks to the pricing strategy.

⚖️ Regulatory & Governance

Industry Regulations

Operations are influenced by the National Technical Textiles Mission (INR 1,480 Cr outlay) and the National Manufacturing Mission aimed at boosting 'Make in India'.

Environmental Compliance

The company focuses on health-related issues and minimizing workplace accidents, though specific ESG compliance costs are not disclosed.

Taxation Policy Impact

The company recorded a standalone tax credit of INR 27.09 Lakhs in FY25, compared to a tax expense of INR 47.92 Lakhs in FY24.

Legal Contingencies

Not disclosed in the provided management discussion and analysis.

⚠️ Risk Analysis

Key Uncertainties

Volatility in cotton prices and the availability of skilled labor are the primary uncertainties that could impact the operating margin by more than 1-2%.