Osiajee Texfab - Osiajee Texfab

📊 BSE: 540198 🏢 Other Textile Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Standalone total income grew by 118.9% YoY to INR 15.52 Lakhs from INR 7.09 Lakhs. The textile trading segment remains the primary standalone business, while the wholly-owned subsidiary, Osiajee Agro Farms Limited, generated a turnover of INR 7.09 Cr in its first full reporting period.

Geographic Revenue Split

Operations are primarily concentrated in Hoshiarpur, Punjab, India. 100% of revenue is derived from domestic operations, specifically within the textile trading and agro-farming sectors in the Punjab region.

Profitability Margins

Standalone Operating and Net Profit Margins both improved to 9.26% in FY 2024-25 from 2.15% in FY 2023-24. However, the company reported a standalone net loss of INR 2.06 Lakhs compared to a profit of INR 3.82 Lakhs in the previous year. The subsidiary reported a high net profit of INR 5.03 Cr on a turnover of INR 7.09 Cr.

EBITDA Margin

Operating Profit Margin stood at 9.26%, reflecting a 330% increase from the previous year's 2.15%, driven by lower relative operating expenses despite the standalone net loss.

Capital Expenditure

Not explicitly disclosed in absolute INR Cr for the current year; however, the subsidiary Osiajee Agro Farms Limited holds total assets of INR 15.23 Cr, indicating significant historical investment in land and agro-assets.

Credit Rating & Borrowing

Not disclosed in available documents. Interest Coverage Ratio improved significantly from 4.90 to 18.32, indicating a better ability to service debt despite the standalone loss.

⚙️ Operational Drivers

Raw Materials

Textile fabrics (for trading) and Eucalyptus/Poplar saplings and agricultural inputs (for agro-farming). Specific cost percentages for each are not disclosed.

Import Sources

Sourced domestically within India, specifically in the Hoshiarpur district of Punjab for agro-farming operations.

Key Suppliers

Not disclosed in available documents; however, the company maintains long-term relationships with vendors to mitigate commodity price risks.

Capacity Expansion

Current operations involve trading and 100% ownership of an agro-farm. Planned expansion includes developing residential and commercial complexes to earn rental income or sales revenue.

Raw Material Costs

Not disclosed as a specific percentage of revenue; however, the company uses a mitigation strategy of long-term vendor relationships to manage commodity price volatility.

Manufacturing Efficiency

Not applicable as the company is primarily in trading and agro-farming. Inventory turnover ratio dropped from 113.88 to 35.76 (a 68.6% decrease), indicating slower stock movement.

📈 Strategic Growth

Expected Growth Rate

10-12%

Growth Strategy

Diversification into high-growth agro-farming (Eucalyptus and Poplar trees) and entry into the real estate sector for residential and commercial development. The company is also expanding its textile reach through e-commerce and modern trade channels.

Products & Services

Trading of textile fabrics, Eucalyptus and Poplar wood for the plywood industry, and proposed residential/commercial real estate units.

Brand Portfolio

OSIAJEE

New Products/Services

Entry into real estate development (residential and commercial complexes) and expansion of agro-farming produce to wood-based manufacturers.

Market Expansion

Targeting the plywood industry in Punjab and expanding textile trading via digital platforms.

Strategic Alliances

Wholly-owned subsidiary Osiajee Agro Farms Limited; proposed partnerships for real estate development.

🌍 External Factors

Industry Trends

The Indian textile industry is growing at 10-12% annually. Future trends include a focus on Extra-Long Staple (ELS) cotton and a projected US $30 billion in RMG exports by 2027.

Competitive Landscape

Competes with other textile traders and local agro-producers in the Punjab region.

Competitive Moat

The company's moat is based on diversification into agro-farming which provides a steady profit stream (INR 5.03 Cr profit) to offset volatility in the textile trading business.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth and textile industry trends. The sector is projected to reach US $350 billion by 2030, growing at a 10% CAGR.

Consumer Behavior

Shift toward value-for-money options and e-commerce platforms in the textile segment.

Geopolitical Risks

Global financial shocks and rising NPAs in the financial sector are cited as vulnerabilities that could affect stability.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Companies Act 2013, SEBI LODR 2015, and specific agricultural land use norms in Punjab.

Taxation Policy Impact

The subsidiary provided Nil for taxation on a profit of INR 5.02 Cr, likely due to agricultural income exemptions under Indian tax laws.

Legal Contingencies

The company has several compliance failures: non-payment of CDSL annual listing fees for FY 2024-25 and 2025-26, failure to file Form SH-7 for capital increase to INR 10.50 Crore, and failure to file MGT-14 for MOA/AOA updates.