Game Changers - Game Changers

📊 BSE: 544594 🏢 Other Textile Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

B2B Fabric business currently contributes 85% of revenue, B2C contributes 13-14%, and Technical Textiles contribute 2%. H1 FY26 total revenue grew 4.44% YoY to INR 57.23 Cr.

Geographic Revenue Split

US exports account for a significant portion of the USD 40 billion industry export segment, though US business is currently impacted by 15-20% due to tariffs. The company is diversifying into EU, UK, and Japan.

Profitability Margins

PAT margin increased from 9.4% to 14.5% (a 50% improvement in efficiency). EBITDA margin expanded from 13.5% to 21.4% in H1 FY26.

EBITDA Margin

21.4% in H1 FY26, representing a 7.9% YoY expansion driven by sourcing discounts and tight expense control.

Capital Expenditure

INR 15.5 Cr expansion planned for the next 1.5 months as loans are processed. CapEx will be directed toward 2-3 new experience centers in the next 6-9 months.

Credit Rating & Borrowing

Current borrowing limit of INR 9.5 Cr with ICICI Bank, being enhanced to INR 25 Cr with HDFC and Axis Bank to support larger orders.

⚙️ Operational Drivers

Raw Materials

Technical textiles (imported from China) and outdoor fabrics (imported from Singapore).

Import Sources

China (technical textiles) and Singapore (outdoor fabrics).

Key Suppliers

Not disclosed by name, but the company has increased its curated supplier base from 500 to 523.

Capacity Expansion

Planned opening of experience centers in Lajpat Nagar (Feb/Mar 2026), Chandigarh, Old Gurgaon, Dubai, and Bangladesh within 6-9 months.

Raw Material Costs

Sourcing strategy involves realizing cash discounts of 3% to 7% from suppliers by paying upfront in a cash-starved industry.

Manufacturing Efficiency

Operational efficiency reflected in PAT jumping 60% YoY (INR 8.31 Cr vs INR 5.18 Cr) despite only 4.44% revenue growth.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Shifting revenue mix from B2B Fabric (85% to 70-75%) toward higher-margin B2C (13-14% to 20-25%) and Technical Textiles (2% to 15%). Strategy includes opening retail experience centers in high-potential markets like Lajpat Nagar (INR 500 Cr potential) and onboarding large brands for INR 100 Cr revenue targets.

Products & Services

B2B fabrics, technical textiles, outdoor fabrics, and high-end designer clothing sold through experience centers and online platforms.

Brand Portfolio

TradeUNO

New Products/Services

2,000+ new choice introductions in the product portfolio; expansion into premium lifestyle and fashion retail through a new subsidiary.

Market Expansion

Targeting Lajpat Nagar, Chandigarh, Old Gurgaon, Dubai, and Bangladesh for new retail stores.

Market Share & Ranking

Identified 5 major competitors in the INR 500 Cr Lajpat Nagar retail market.

Strategic Alliances

Onboarding top designers like Dazal Gupta and Sima Gujral; implementing an Amway-style promoter model for women to promote TradeUNO.

🌍 External Factors

Industry Trends

Industry shift toward technical textiles and B2C retail; diversification of Indian textile exports toward EU, UK, and Japan to mitigate US trade risks.

Competitive Landscape

Facing 5 key competitors in the high-end retail segment in North India.

Competitive Moat

Durable advantage through a curated network of 523 suppliers and sourcing expertise that secures 3-7% pricing discounts, which are difficult for competitors to replicate in a cash-starved industry.