💰 Financial Performance

Revenue Growth by Segment

Manufacturing revenue grew to INR 77.63 Cr in FY25 (63.6% of total), while Trading revenue was INR 44.43 Cr (36.4% of total). In Q2FY26, Manufacturing contributed 62.4% and Trading 34.6% of sales. Manufacturing is driving incremental growth and margin improvement.

Geographic Revenue Split

Not disclosed in available documents; however, the company is based in Surat, Gujarat, which is its primary hub.

Profitability Margins

EBITDA margin was 4.48% in FY25 (down from 6.19% in FY24). Net profit margin was 2.06% in FY25 (up from 1.09% in FY24). Q2FY26 EBITDA margin improved significantly to 8.12%.

EBITDA Margin

EBITDA margin was 8.12% in Q2FY26, a significant improvement of 916 BPS YoY from -1.04% in Q2FY25. FY25 EBITDA was INR 5.47 Cr (4.48% margin).

Capital Expenditure

Netblock stood at INR 17.61 Cr in FY25. The company executed its 3rd Phase of CAPEX in June 2021 for capacity augmentation of the Waterjet Unit.

Credit Rating & Borrowing

Reaffirmed at 'CRISIL B+/Stable' in April 2025. Interest cost was INR 4.55 Cr in FY25 on a total income of INR 125.36 Cr.

⚙️ Operational Drivers

Raw Materials

Polyester and poly-blend fabrics (grey fabrics) are the primary raw materials. While specific cost percentages per material are not disclosed, total operating expenses were INR 116.58 Cr in FY25, representing 95.5% of revenue.

Capacity Expansion

Current annual manufacturing capacity is ~250 Lakh Meters. Specific units include a Waterjet Unit (20-22 lakh meters/month), Embroidery Unit (37 lakh stitches/day), and Digital Printing Unit (7,200 meters/day). No new planned expansion was detailed beyond the completed 3rd phase.

Raw Material Costs

Raw material costs are a major component of the INR 116.58 Cr total operating expenses in FY25. Procurement strategies focus on sourcing grey fabrics for value-added processing.

Manufacturing Efficiency

The shift to manufacturing has improved EBITDA margins from -1.04% in Q2FY25 to 8.12% in Q2FY26, reflecting higher operational efficiency.

📈 Strategic Growth

Expected Growth Rate

16-23%

Growth Strategy

The company aims to achieve growth by continuing its 'Shifting Gears' strategy, focusing on high-margin manufacturing operations over trading. It plans to leverage its augmented capacity (20-22 lakh meters/month in Waterjet unit) and recent capital infusion to pursue future growth opportunities and improve profitability margins.

Products & Services

Grey fabrics, embroidered fabrics, digital printed fabrics, bed sheets, curtains, cushion covers, scarfs, pareos, suiting, shirting, technical textile fabrics

Brand Portfolio

Trident Texofab

New Products/Services

The company has introduced technical textiles and value-added products in embroidery and digital printing. Specific revenue contribution percentages for new launches were not disclosed.

🌍 External Factors

Industry Trends

The textile industry is seeing a shift towards semi-composite manufacturing. The company grew revenue by 22.69% in FY25, positioning itself to capture higher margins by moving away from pure trading (which dropped from 100% in FY18 to 34.6% in Q2FY26).

Competitive Landscape

The company faces intense competition from numerous organized and unorganized players in the textile hub of Surat, Gujarat.

Competitive Moat

The company's moat lies in its transition to a semi-composite manufacturing model, which has improved EBITDA margins from -1.04% to 8.12% in Q2FY26. This is supported by the extensive experience of the promoters in the Surat textile market.

⚖️ Regulatory & Governance

Industry Regulations

The company is subject to textile industry regulations, pollution norms, and government tax regimes, though specific impact values were not disclosed.

Taxation Policy Impact

Effective tax rate was approximately 2.5% in FY25 (PBT of INR 2.58 Cr vs PAT of INR 2.51 Cr).

⚠️ Risk Analysis

Key Uncertainties

Key risks include raw material price volatility (polyester) and high working capital intensity with bank limit utilization at 97.9%.

Geographic Concentration Risk

Operations are primarily concentrated in Surat, Gujarat. Regional revenue split percentages were not disclosed.

Technology Obsolescence Risk

The company utilizes Waterjet, Rapier, and Digital Printing technologies. Risk involves the need for continuous technology absorption to maintain manufacturing efficiency.

Credit & Counterparty Risk

Working capital intensity is high, with bank limit utilization at 97.9% in late 2023, indicating significant credit exposure to operational cycles.