💰 Financial Performance

Revenue Growth by Segment

Total revenue for FY25 was INR 3,556.59 Cr, representing a significant decline of 33.6% compared to INR 5,356.35 Cr in FY24. This decline is primarily attributed to the strategic shift of the polyester business to a job work model starting March 2024, where the company now only accounts for conversion and rental income rather than gross sales.

Geographic Revenue Split

In FY25, local sales contributed INR 2,712.72 Cr (76.27% of total revenue), while export sales accounted for INR 843.87 Cr (23.73% of total revenue). Both segments saw declines from FY24 levels of INR 4,248.42 Cr and INR 1,107.93 Cr respectively.

Profitability Margins

Net Profit Margin for FY25 was negative 21.62%, a deterioration from negative 15.19% in FY24. The company reported a Net Loss After Tax of INR 768.81 Cr in FY25 compared to a loss of INR 813.71 Cr in FY24. For H1 FY26, the standalone loss before tax stood at INR 409.30 Cr.

EBITDA Margin

Operating EBITDA margin (without provisions) was 1.58% (INR 56.31 Cr) in FY25, down from 1.81% (INR 96.88 Cr) in FY24. After considering provisions and an exceptional gain of INR 94.14 Cr, the EBITDA margin for FY25 stood at 3.84% (INR 136.69 Cr).

Capital Expenditure

In H1 FY26 (period ended September 30, 2025), the company invested INR 118.76 Cr in the purchase of property, plant, and equipment (including CWIP and capital advances), significantly higher than the INR 19.70 Cr invested in the same period the previous year.

Credit Rating & Borrowing

The company's credit profile is impacted by continued subdued operating performance in FY25. Finance costs remained high at INR 613.46 Cr for FY25 (up from INR 581.62 Cr in FY24), leading to a very low interest coverage ratio of 0.09.

⚙️ Operational Drivers

Raw Materials

Specific raw material names and their exact percentage of total cost are not disclosed in the provided documents, though the business involves polyester and textile manufacturing.

Capacity Expansion

Current installed capacity is not specified; however, the company is investing in PPE with INR 118.76 Cr spent in H1 FY26 to maintain or upgrade facilities.

Raw Material Costs

Cost of materials consumed is not explicitly broken out as a single YoY percentage, but the shift to a job work model for polyester has fundamentally reduced the raw material cost burden in exchange for lower top-line revenue.

Manufacturing Efficiency

Manufacturing efficiency was negatively impacted in FY25 by external factors like power outages and weather events at the Silvassa plant, leading to higher fixed costs per unit of production.

📈 Strategic Growth

Growth Strategy

The company is focusing on stabilizing operations at its Silvassa unit following disruptions and leveraging its job work model in the polyester segment to ensure more predictable cash flows. It is also maintaining significant export operations (INR 843.87 Cr) to diversify market risk.

Products & Services

The company produces polyester products (under job work), local textile goods, and export-quality textile products.

Market Expansion

The company maintains a presence in both local (INR 2,712.72 Cr) and export (INR 843.87 Cr) markets, though specific new target regions are not listed.

Strategic Alliances

The company operates with eight subsidiaries and has joint ventures, reporting a share of loss from joint ventures of INR 0.96 Cr in FY25.

🌍 External Factors

Industry Trends

The textile industry is seeing a shift toward job work models to manage raw material price volatility. Alok Industries' shift in its polyester segment reflects this trend to protect against margin compression.

Competitive Landscape

The company operates in a highly competitive textile and polyester market, currently struggling with high debt and operational disruptions compared to peers.

Competitive Moat

The company's moat is not explicitly defined, but its large-scale operations and significant export reach (INR 843.87 Cr) provide a competitive footprint despite current financial stress.

Macro Economic Sensitivity

The company is sensitive to industrial power costs and global textile demand, as exports make up 23.7% of revenue.

⚖️ Regulatory & Governance

Industry Regulations

The company complies with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Indian Accounting Standards (Ind AS 34) for its financial reporting.

Taxation Policy Impact

The company has not made provisions for current tax in FY25 or H1 FY26 due to accumulated losses. It reported a deferred tax credit of INR 5.02 Cr in FY25.

Legal Contingencies

The company has a significant negative 'Other Equity' balance of INR 21,126.65 Cr as of September 30, 2025, indicating severe historical financial distress and potential legal/creditor pressures, though specific pending court case values are not listed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the ability to service debt, given the interest coverage ratio of 0.09. Operational risks from natural disasters (tornadoes) and utility failures (power) also pose significant threats to production stability.

Geographic Concentration Risk

76.3% of revenue is concentrated in the Indian local market, making the company highly dependent on domestic economic conditions.

Third Party Dependencies

The shift to a job work model increases dependency on the principals providing the work for the polyester segment.

Credit & Counterparty Risk

Debtors turnover days increased from 29 to 43 days in FY25, suggesting a slight slowdown in collections. Trade receivables stood at INR 305.20 Cr as of September 30, 2025.