EUROTEXIND - Eurotex Industri
Financial Performance
Revenue Growth by Segment
Total income for H1 FY2025 grew by 57.27% YoY to INR 6.62 Cr from INR 4.21 Cr. The Textiles (Yarn) segment revenue increased by 30.82% to INR 8.49 Cr in H1 FY2025 compared to INR 6.49 Cr in H1 FY2024, while the Real Estate Development segment reported a negative revenue adjustment of INR 1.87 Cr.
Geographic Revenue Split
Not specifically disclosed in available documents, though the company operates as Eurotex Industries and Exports Limited, implying a mix of domestic and international yarn sales.
Profitability Margins
Profitability remains deeply negative but showed relative improvement; Net Profit Margin was -190.27% in FY 2024-25 compared to -1038.07% in FY 2023-24. Operating Profit Margin improved from -1047.04% to -726.22% YoY.
EBITDA Margin
The company reported a total segment loss before interest and tax of INR 2.28 Cr for H1 FY2025, an improvement from a loss of INR 2.72 Cr in H1 FY2024, representing a 16.18% reduction in operating losses.
Capital Expenditure
The company is currently in a divestment phase rather than expansion; it generated INR 5.35 Cr from the sale of property, plant, and equipment in H1 FY2025, compared to INR 0.67 Cr in H1 FY2024.
Credit Rating & Borrowing
The company's credit rating was downgraded to [ICRA]D (Default) in February 2019 due to delays in debt servicing and was subsequently withdrawn in August 2020. Current financial borrowings stand at INR 30.71 Cr as of September 2025.
Operational Drivers
Raw Materials
Cotton represents the primary raw material for the yarn segment, typically accounting for 60-70% of total manufacturing costs in the spinning industry.
Import Sources
Not specifically disclosed, but typically sourced from major cotton-producing states like Maharashtra and Gujarat.
Key Suppliers
Not disclosed in the provided financial documents.
Capacity Expansion
No expansion planned; the company is liquidating assets, including the sale of plant, machinery, and freehold land at Kolhapur to manage liquidity and debt.
Raw Material Costs
Not explicitly broken out as a percentage of revenue in the H1 FY2025 results, but high production costs are cited as a primary reason for persistent operating losses.
Manufacturing Efficiency
Manufacturing efficiency is currently low, evidenced by an Inventory Turnover Ratio of only 0.63 in FY 2024-25, indicating slow-moving stock and underutilized capacity.
Logistics & Distribution
Not disclosed as a specific percentage of revenue.
Strategic Growth
Expected Growth Rate
57%
Growth Strategy
Growth is being pursued through a turnaround strategy focusing on the stabilization of the yarn segment and the monetization of non-core assets (land and machinery in Kolhapur) to settle liabilities and improve the debt-to-equity ratio, which stood at -1.60 in FY 2024-25.
Products & Services
Cotton Yarn and Real Estate Development services.
Brand Portfolio
EUROTEX
New Products/Services
No new product launches disclosed; focus is on existing yarn operations and asset liquidation.
Market Expansion
No market expansion plans disclosed; the company is currently focused on debt reduction and internal restructuring.
Market Share & Ranking
Not disclosed; the company is a small-cap player with a paid-up capital of INR 8.74 Cr.
External Factors
Industry Trends
The Indian textile industry is facing high production costs and cyclical demand shifts. Eurotex is positioned poorly for future growth due to its negative net worth of INR 29.47 Cr and 'Default' credit history, necessitating a focus on survival through asset sales.
Competitive Landscape
Competes with numerous organized and unorganized spinning mills in India; faces pressure from larger players with better economies of scale and lower debt costs.
Competitive Moat
The company lacks a significant moat, as yarn is a commodity product. Its competitive position is weakened by a current ratio of 0.04, indicating severe difficulty in meeting short-term obligations.
Macro Economic Sensitivity
Highly sensitive to global textile demand and domestic agricultural policies affecting cotton availability and pricing.
Consumer Behavior
Shift toward synthetic blends and sustainable fibers in the global fashion industry affects long-term demand for pure cotton yarn.
Geopolitical Risks
Trade barriers or shifts in global textile supply chains (e.g., shifts to Vietnam or Bangladesh) impact the demand for Indian cotton yarn.
Regulatory & Governance
Industry Regulations
Operations are subject to textile industry standards and environmental norms; the company is exempt from certain corporate governance regulations (Regulation 17 to 27 of SEBI LODR) because its paid-up capital is below INR 10 Cr and net worth is negative.
Environmental Compliance
Not specifically disclosed, though textile units must comply with state pollution control board norms for water discharge and emissions.
Taxation Policy Impact
The company reported a tax expense of zero for H1 FY2025 due to ongoing losses.
Legal Contingencies
The company has disclosed pending litigations in Note 31.1 of its financial statements, though the specific INR value of these contingencies is not provided in the summary documents.
Risk Analysis
Key Uncertainties
The primary uncertainty is the 'Going Concern' status given the negative net worth of INR 29.47 Cr and a current ratio of 0.04, which indicates a 96% shortfall in current assets relative to current liabilities.
Geographic Concentration Risk
Operations are concentrated in Maharashtra, specifically with significant assets located in Kolhapur and the registered office in Mumbai.
Third Party Dependencies
High dependency on cotton suppliers and the banking sector for working capital, which has been restricted due to the default rating.
Technology Obsolescence Risk
Risk of aging machinery; the company is currently selling off plant and equipment, which may lead to a technological gap compared to modernized competitors.
Credit & Counterparty Risk
Trade receivables stood at INR 2.52 Cr as of September 2025; the quality is critical given the company's lack of liquidity.