DAMODARIND - Damodar Indust.

📊 NSE: DAMODARIND 🏢 Textiles - Spinning - Synthetic / Blended 📅 Last Updated: 12/13/2025 21:21

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations was INR 421.44 Cr in FY25, representing a 41% decline from INR 715.38 Cr in FY24. Segment-specific growth is not detailed, but the company diversified into man-made fibers starting Q2 FY25.

Profitability Margins

Net Profit Margin improved to 1.28% in FY25 from 0.73% in FY24. Gross margin (based on cost of consumption) was approximately 53.6% of revenue.

EBITDA Margin

Operating margins are targeted to remain above 7% for credit rating sustenance. Interest coverage ratio stood at 2.18x in FY25.

Capital Expenditure

Planned capital expenditure of INR 4-4.5 Cr over the medium term, to be funded through internal accruals.

Credit Rating & Borrowing

CRISIL upgraded the rating to 'BBB-/Stable' from 'BB+/Stable'. Gearing improved to 1.31x as of March 31, 2025, from 2.22x in the previous year due to term loan prepayments.

⚙️ Operational Drivers

Raw Materials

Cotton and Man-made fibers. Cost of consumption was INR 195.52 Cr, representing 46.4% of total revenue.

Capacity Expansion

The company started manufacturing man-made fibers in Q2 FY25. It is also realizing funds from the sale of its Dadra plant to improve financial position.

Raw Material Costs

Raw material consumption costs decreased by 47.6% YoY to INR 195.52 Cr in FY25, following the sharp decline in overall revenue.

Manufacturing Efficiency

Bank limit utilization is high, averaging 88% for the twelve months ended April 2025.

Logistics & Distribution

Other expenses, including distribution and administrative costs, totaled INR 43.88 Cr, or 10.4% of revenue.

📈 Strategic Growth

Expected Growth Rate

41.65%

Growth Strategy

Growth is targeted through the new man-made fiber division launched in Q2 FY25, leveraging 40+ years of promoter experience, and improving the financial risk profile via the sale of the Dadra plant and government subsidies.

Products & Services

Spinning of fancy roving injected yarns, weaving products, and man-made fibers.

Brand Portfolio

Damodar

New Products/Services

Man-made fibers launched in Q2 FY25.

🌍 External Factors

Industry Trends

The industry is shifting toward man-made fibers to mitigate the volatility of cotton prices; the company positioned itself for this by starting MMF production in FY25.

Competitive Landscape

The company operates in a fragmented textile market with volatile revenue trends.

Competitive Moat

Moat is built on the 'Damodar' brand value and over four decades of promoter experience in industry dynamics and customer relationships.

Macro Economic Sensitivity

Highly sensitive to economic development and demand cycles in the textile sector.

Consumer Behavior

Shift in demand toward man-made fiber-based textiles.

⚖️ Regulatory & Governance

Industry Regulations

Maintenance of cost records is required under Section 148 of the Companies Act, 2013; the auditor confirmed these are maintained.

Taxation Policy Impact

Current tax of INR 0.59 Cr (59.33 Lakh) and a deferred tax credit of INR 2.01 Cr in FY25.

Legal Contingencies

The company has complied with provisions of sections 73 to 76 regarding public deposits; no orders have been passed by NCLT or RBI against the company.