AVIANSH - Avi Ansh

📊 NSE: AVIANSH 🏢 Textiles - Cotton/Blended 📅 Last Updated: 12/13/2025 18:47

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: manufacturing and trading of textiles. Revenue from operations for H1 FY26 was INR 63.07 Cr, representing a decline of 4.86% compared to INR 66.29 Cr in H1 FY25. Total revenue for FY25 was INR 134.24 Cr.

Geographic Revenue Split

The company operates exclusively within the Indian market, contributing 100% of its revenue from domestic operations.

Profitability Margins

Profitability margins have seen a decline. The Net Profit Margin for H1 FY26 was 1.27% (INR 0.80 Cr PAT on INR 63.07 Cr revenue), down from 2.63% in FY25 (INR 3.54 Cr PAT on INR 134.24 Cr revenue).

EBITDA Margin

Core profitability as measured by Profit Before Tax (PBT) for H1 FY26 was INR 0.97 Cr, a significant decrease from the FY25 full-year PBT of INR 4.60 Cr.

Capital Expenditure

The company has no major near-term capital expenditure plans as of late 2024. Historical IPO proceeds of INR 25.99 Cr were primarily allocated to working capital (INR 20.11 Cr) and debt repayment (INR 3.94 Cr).

Credit Rating & Borrowing

Infomerics Ratings assigned a long-term rating of IVR BBB-/Stable and a short-term rating of IVR A3. Borrowing costs are linked to these ratings, with a stable outlook based on adequate cash accruals of INR 7.90-11.85 Cr against debt obligations of INR 1.16-3.00 Cr.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include Cotton and Yarn. Cotton prices are highly volatile and significantly impact the cost of material consumed, which was INR 43.02 Cr in H1 FY26.

Import Sources

Raw materials are sourced domestically, primarily from multiple suppliers in India to reduce dependence on a single market. The manufacturing facility is located in Dera Bassi, Punjab.

Key Suppliers

The company sources commodities from multiple suppliers to mitigate supply chain risks, though specific supplier names are not disclosed in available documents.

Capacity Expansion

Current installed capacity is 26,000 spindles with a production limit of 12-15 MT of cotton yarn per day. No specific expansion timeline is provided.

Raw Material Costs

Raw material costs represent approximately 68% of revenue in H1 FY26. Procurement strategies involve monitoring market trends and strategic inventory management to balance supply needs against price fluctuations.

Manufacturing Efficiency

The company maintains a production limit of 12-15 MT per day. Manufacturing efficiency is supported by a structured framework of internal controls and regular internal audits.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through the utilization of IPO proceeds (INR 25.99 Cr) to fund working capital requirements (INR 20.11 Cr) and repay term loans (INR 3.94 Cr). This strategy aims to reduce finance costs and support higher production volumes in the expanding Indian textile and apparel sector.

Products & Services

The company manufactures and trades cotton yarn and finished textiles, including spinning, weaving, and finishing services.

Brand Portfolio

Avi Ansh

Market Expansion

The company is focused on the Indian market, leveraging stable demand in the domestic textile sector.

🌍 External Factors

Industry Trends

The Indian textile and apparel sector is expected to expand with stable demand. The industry is characterized by intense competition and a shift toward organized players on platforms like the NSE SME.

Competitive Landscape

The industry is highly fragmented and competitive, featuring numerous small and large-scale spinning and weaving units.

Competitive Moat

The company's moat is based on experienced promoters and the strategic location of its manufacturing facility in Punjab, providing easy access to raw materials. Sustainability is linked to maintaining a moderate capital structure.

Macro Economic Sensitivity

Highly sensitive to domestic inflation and GDP growth as they drive demand for apparel and textiles.

Consumer Behavior

Demand is driven by stable consumer trends in the Indian apparel market.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to pollution control norms, textile manufacturing standards, and labor laws applicable to the manufacturing sector in Punjab and Delhi.

Taxation Policy Impact

The company is subject to standard Indian corporate tax rates. Tax expenses for H1 FY26 were INR 0.17 Cr.

Legal Contingencies

No materially significant pending court cases or legal disputes were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Key risks include the volatility of cotton prices (impacting margins) and exposure to an associate entity, Avi Ansh Enterprises Private Limited, through corporate guarantees.

Geographic Concentration Risk

100% of revenue is concentrated in India, with manufacturing operations centralized in Punjab.

Third Party Dependencies

High dependency on the credit risk profile of its associate entity due to extended corporate guarantees, which restricts the company's overall credit profile.