BOMDYEING - Bombay Dyeing

📊 NSE: BOMDYEING 🏢 Textiles - Manmade 📅 Last Updated: 12/13/2025 19:41

💰 Financial Performance

Revenue Growth by Segment

Total consolidated revenue for H1 FY26 (period ending Sept 30, 2025) was INR 740.47 Cr, a decrease of 10.96% compared to INR 831.60 Cr in H1 FY25. The PSF segment contributed INR 733.99 Cr in H1 FY26, representing 99.1% of operational revenue. Real Estate segment revenue was not separately itemized for the half-year but showed an EBIT loss of INR 7.50 Cr.

Geographic Revenue Split

Not disclosed in available documents, though the company exports PSF which provides a natural hedge against forex volatility.

Profitability Margins

Consolidated Net Profit for H1 FY26 was INR 15.73 Cr, a 96.1% decrease from INR 408.35 Cr in H1 FY25, primarily because the previous year included a massive one-time gain from the Worli land sale. Operating profit before working capital changes was a loss of INR 21.78 Cr in H1 FY26 compared to a loss of INR 15.14 Cr in H1 FY25.

EBITDA Margin

The PSF segment reported negative EBIT in H1 FY26 on revenue of INR 733 Cr. However, overall EBITDA is expected to improve in H2 FY26 due to cost-efficiency projects and better realizations. Interest coverage ratio improved significantly to 32.21x from 12.18x YoY due to the prepayment of all long-term debt.

Capital Expenditure

The company is undertaking cost-efficiency projects in the PSF segment through FY2025 and FY2026 to reduce power costs and improve value addition. Specific INR values for planned capex are not disclosed, but the company maintains a liquidity surplus of INR 1,300 Cr to fund operations.

Credit Rating & Borrowing

CRISIL has revised the outlook to 'Positive' from 'Stable' and reaffirmed the long-term rating at 'CRISIL BBB+'. The short-term rating is 'CRISIL A2+'. The company is currently debt-averse with zero debt as of September 30, 2024.

⚙️ Operational Drivers

Raw Materials

Polyester Staple Fibre (PSF) raw materials (typically PTA and MEG) and Cotton crop (India and Global) which impacts the demand and pricing of PSF by approximately 15-20% based on market substitution trends.

Import Sources

Not specifically disclosed, but the company monitors global cotton crop supply which suggests international sourcing or price benchmarking.

Capacity Expansion

PSF capacity utilization is currently at 85-90%. The company is planning to launch a new phase of its real estate project in H1 FY2026, which is expected to generate substantial cash flows.

Raw Material Costs

Raw material costs are susceptible to volatility in global prices and forex fluctuations. PSF margins were pressured in H1 FY26 due to price undercutting from surplus domestic capacity and raw material price volatility.

Manufacturing Efficiency

Capacity utilization for PSF is high at 85-90%. Efficiency is being targeted through value-added products and power-saving capex to turn EBIT positive in the PSF segment by the end of FY2025.

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

Growth will be driven by the launch of a new real estate project in H1 FY2026, which is expected to provide significant cash flow. In the PSF segment, the company is focusing on cost-efficiency projects to improve operating margins and increasing the share of value-added products to capture more than 10% of the market share.

Products & Services

100% virgin polyester staple fibre (PSF), residential real estate (apartments and FSI), and textile retail products.

Brand Portfolio

Bombay Dyeing

New Products/Services

New real estate project launch scheduled for H1 FY2026; value-added PSF variants for apparel, home textiles, and industrial products.

Market Expansion

Targeting diverse end markets for PSF including automobiles, geotextiles, and hygiene products to reduce dependency on traditional textiles.

Market Share & Ranking

The company holds a significant market share of more than 10% in the Indian PSF segment.

Strategic Alliances

The company has a 97.36% owned subsidiary, P.T. Five Star Textiles in Indonesia.

🌍 External Factors

Industry Trends

The PSF industry is facing pressure from surplus capacity in India, leading to price wars. The real estate sector is seeing a trend toward land monetization, as evidenced by the company's INR 5,224 Cr total land sale at Worli.

Competitive Landscape

Faces intense competition in PSF from domestic players with surplus capacity and in real estate from major Mumbai-based developers.

Competitive Moat

The company's moat is built on its 140-year-old brand legacy and its prime real estate land bank in Mumbai. These are sustainable due to high entry barriers in Mumbai real estate and established customer trust in the PSF segment.

Macro Economic Sensitivity

Highly sensitive to the cyclicality of the Indian real estate industry and global commodity price cycles for polyester feedstock.

Consumer Behavior

Shift toward value-added and technical textiles is driving the company to diversify its PSF applications into hygiene and automotive sectors.

Geopolitical Risks

Ongoing wars and global supply chain disruptions are cited as concerns that could impact PSF demand and margin stability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to changing legal and regulatory landscapes in India, particularly regarding real estate development and environmental norms for textile manufacturing.

Taxation Policy Impact

Income taxes paid (net) were INR 38.42 Cr in H1 FY26 compared to a refund/adjustment of INR 37.32 Cr in H1 FY25.

Legal Contingencies

The company has made a provision of INR 11.92 Cr towards litigated matters as of H1 FY26. It is also contesting a SEBI order from October 2022 that imposed a INR 2.25 Cr penalty and a 2-year market access ban, though the company maintains the transactions were legitimate.