CEDAAR - Cedaar Textile

📊 NSE: CEDAAR 🏢 Other Textile Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 9.82% YoY to INR 207.87 Cr in FY25 from INR 189.29 Cr in FY24. Segment-specific growth is not disclosed as the company failed to comply with AS 17 'Segment Reporting', leading to a qualified audit opinion.

Geographic Revenue Split

Primarily domestic market orientation. Specific regional percentages are not disclosed in the available documents.

Profitability Margins

Net Profit Margin was 5.79% in FY25, a slight decrease from 6.39% in FY24. Return on Equity (ROE) significantly improved from 35% to 63% due to the increase in Profit After Tax (PAT) and changes in shareholder funds.

EBITDA Margin

Estimated EBITDA margin is approximately 15.26% (INR 31.72 Cr) for FY25, calculated from PBT of INR 16.30 Cr plus finance costs of INR 11.34 Cr and depreciation of INR 4.08 Cr.

Capital Expenditure

The company is heading for major expansion in yarn cone dyeing and hank dyeing in the coming year to tap domestic and international opportunities. Specific INR values for planned CapEx are not disclosed.

Credit Rating & Borrowing

Long-term borrowings decreased by 54.5% from INR 72.68 Cr (FY24) to INR 33.05 Cr (FY25). Debt-Equity ratio improved from 10.43 to 5.79.

⚙️ Operational Drivers

Raw Materials

Cotton and Polyester represent the primary raw materials.

Capacity Expansion

Current capacity not disclosed; planned expansion includes major growth in yarn cone dyeing and hank dyeing in the coming year.

Raw Material Costs

Cost of materials consumed was INR 148.73 Cr in FY25, representing 71.5% of total revenue, up from INR 110.70 Cr (58.5% of revenue) in FY24. This 34.3% YoY increase in material costs impacts overall profitability.

📈 Strategic Growth

Expected Growth Rate

9.82%

Growth Strategy

Growth will be achieved through major expansion in yarn cone dyeing and hank dyeing, tapping international market opportunities, and utilizing the INR 60.90 Cr raised from the SME IPO on NSE Emerge in June 2025.

Products & Services

Dyed yarn (cone and hank dyeing), manufactured textiles, and traded textile goods.

New Products/Services

Expanded dyeing services for yarn (cone and hank) with expected revenue contribution not yet quantified.

Market Expansion

Heading for major expansion in domestic and international markets in the coming year.

🌍 External Factors

Industry Trends

Shift towards sustainable environments and conservation of natural resources (Polyester & Cotton). The company is aligning with quality certifications like GOTS and OEKO-TEX® to meet these trends.

Competitive Moat

Competitive advantage is derived from quality certifications (ISO, GOTS, OEKO-TEX®) and the flexibility to engage in both manufacturing and trading to ensure supply chain resilience.

Macro Economic Sensitivity

Sensitive to domestic consumer demand trends and raw material price fluctuations.

Consumer Behavior

Shifting market demands and seasonal peaks require the company to quickly adapt inventory levels and product mix.

⚖️ Regulatory & Governance

Industry Regulations

Non-compliance with Accounting Standard 17 'Segment Reporting' resulted in a qualified audit opinion. Auditor noted that quarterly returns filed with banks for working capital limits (>INR 5 Cr) were not in agreement with books of account.

Environmental Compliance

Adherence to GOTS (Global Organic Textile Standard) and OEKO-TEX® for sustainable operations.

Taxation Policy Impact

Effective current tax rate of approximately 18.8% (INR 3.07 Cr on INR 16.30 Cr PBT).

Legal Contingencies

The company has disclosed pending litigations in its financial statements that impact its financial position, though specific INR values are not detailed in the text.