Texel Industries - Texel Industries

📊 BSE: 526638 🏢 Plastic Products - Industrial 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations was approximately INR 115.31 Cr. Segment contributions included Tarpaulins at INR 25.86 Cr (22.35% of total), Property Development at INR 7.08 Cr (6.12% of total), and Geotextiles at INR 8.47 Cr.

Geographic Revenue Split

Not disclosed in available documents, though the company reports witnessing healthy demand across both domestic and international markets with woven geotextiles seeing growing acceptance in exports.

Profitability Margins

Operating Profit Margin was 8.04% (down 50% from 16.08% YoY). Net Profit Margin improved to 4.22% from -8.86% in the previous year, representing a turnaround from a loss of INR 8.41 Cr to a profit of INR 4.89 Cr.

EBITDA Margin

Operating Profit Margin stood at 8.04% for FY 2024-25. The 50% decline from the previous year's 16.08% was primarily driven by increased input costs and higher operating expenses despite revenue growth.

Credit Rating & Borrowing

The Debt-Equity Ratio improved significantly to 0.19 from 4.90 (a 96.12% reduction) due to profit retention and new equity infusion. Interest Coverage Ratio improved by 356.34% to 3.24 due to higher earnings and reduced interest burden.

⚙️ Operational Drivers

Raw Materials

Not specifically named in documents, though 'increased input costs' are cited as the primary reason for the 50% decline in operating margins.

Capacity Expansion

Current total installed manufacturing capacity is 23,680 metric tonnes at the Kheda facility, with a total practical capacity of approximately 19,080 metric tonnes.

Raw Material Costs

Input costs increased during the year, leading to a 50% reduction in operating profit margins despite revenue growth. The company is focusing on cost optimization and improving production efficiencies to mitigate these impacts.

Manufacturing Efficiency

Practical capacity utilization is approximately 80.5% (19,080 MT practical vs 23,680 MT installed). The company is focusing on improving production efficiencies and cost optimization.

📈 Strategic Growth

Growth Strategy

Growth is pursued through broadening the product mix, focusing on high-margin value-added products, cost optimization, and selective expansion into untapped markets. The company also initiated property development to unlock value from non-core assets, contributing 6.12% to turnover.

Products & Services

Technical textile products including geomembranes, geotextiles, ground covers, tarpaulins, and water proof membranes. Services include property development of surplus land.

New Products/Services

New product development includes Water Proof Membranes and the initiation of the Land, Building & Property Development segment which generated INR 7.08 Cr in its first year.

Market Expansion

Targeting international markets for woven geotextiles and untapped domestic markets for water conservation solutions to achieve stability in operations and profitability.

🌍 External Factors

Industry Trends

The technical textile industry is evolving with growing demand for water conservation and disaster relief solutions. The company is positioning itself by expanding its product portfolio and geographical presence.

Competitive Landscape

The company operates in a competitive environment where operational efficiency and innovation in value-added products are critical for margin protection.

Competitive Moat

Durable advantages include over 35 years of experience in technical textiles and established manufacturing capabilities at the Kheda facility. Sustainability is supported by a focus on water conservation solutions.

Macro Economic Sensitivity

Performance is closely tied to the pace of economic growth, inflationary trends, and consumer spending power, particularly in the agriculture and retail segments.

Consumer Behavior

Demand is influenced by government schemes in the agro segment and sustained demand from industry and retail markets for tarpaulins.

Geopolitical Risks

Performance is dependent on changes in the geopolitical scenario and global economic conditions which affect commodity prices and business risk.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to governing laws, political factors, and changes in government rules and regulations regarding manufacturing and property development.