💰 Financial Performance

Revenue Growth by Segment

The company operates in a single reportable segment: manufacturing of home textiles. Total income grew by 22.6% YoY to INR 701.7 Cr in FY25 compared to INR 572.3 Cr in FY24. For the TTM period ending September 2025, revenue reached INR 819.7 Cr, representing a 16.8% growth over the previous TTM period.

Geographic Revenue Split

The company has a high geographical concentration with exports to the US accounting for over 50% of its total revenue over the last three years. The remaining revenue is derived from other international markets and domestic sales through its subsidiary, Mats and More Private Limited.

Profitability Margins

Net profit margins have seen a downward trend, declining from 8.15% in FY24 to 5.79% in FY25, and further to 5.25% for the TTM ending September 2025. This decline is attributed to rising raw material costs and one-time expenses related to US showroom setup and capacity operationalization.

EBITDA Margin

EBITDA margin moderated to 13.14% in FY25 from 16.47% in FY24, a decrease of 333 bps. Core profitability was impacted by a 300 bps moderation in PBILDT margins due to global supply chain bottlenecks and raw material price volatility. TTM Sep 2025 EBITDA margin stands at 12.47%.

Capital Expenditure

The company has invested in operationalizing new capacity in Panipat and setting up a showroom in the US. While specific total INR Cr for planned CAPEX is not fully disclosed, the company maintains a long-term debt-free capital structure to support these expansions.

Credit Rating & Borrowing

CARE Ratings reaffirmed 'CARE A; Stable / CARE A1' for bank facilities totaling INR 165.00 Cr as of August 2024. The company has no outstanding term debt, and its adjusted overall gearing stood at 0.56x as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Key raw materials include polyester and cotton-based textiles. Polyester prices have recently increased, impacting margins. Raw materials represent a significant portion of the cost structure, though the exact percentage of total cost for each is not disclosed.

Import Sources

Manufacturing is concentrated in India across 8 facilities located in Dadra and Nagar Haveli, Gujarat, Haryana, and Maharashtra. Specific import countries for raw materials are not disclosed, but the company manages a global supply chain.

Capacity Expansion

The company operates 8 state-of-the-art manufacturing facilities. Recent expansions include the operationalization of new capacity in Panipat to handle larger volumes of value-added home and technical textiles. Current MTPA/unit capacity is not specified.

Raw Material Costs

Raw material costs are subject to high volatility. In FY24, volume growth of 5% was offset by declining realizations due to the normalization of raw material prices. Procurement strategies focus on managing gross margin stabilization amidst global supply chain bottlenecks.

Manufacturing Efficiency

The company is focusing on enhancing its ability to deliver larger volumes in core focus areas of value-added home and technical textiles. Capacity utilization is expected to increase with the addition of new customers and product categories.

📈 Strategic Growth

Expected Growth Rate

16.80%

Growth Strategy

Growth will be driven by the 'China Plus One' strategy adopted by international customers, increasing utilization of newly added capacities in Panipat, and the addition of new customers. The company is also expanding its product categories into technical textiles and patio mats through its subsidiary Mats and More Private Limited.

Products & Services

Value-added home textiles, technical textiles, mats, rugs, and patio mats.

Brand Portfolio

Faze Three, Mats and More.

New Products/Services

Expansion into technical textiles and patio mats. The company is leveraging enhanced design and development capabilities to turnaround new products faster based on customer projections.

Market Expansion

Targeting increased market share in the US through a new showroom and leveraging the 'China Plus One' shift to capture more volume from reputed international retailers.

Strategic Alliances

The company operates through subsidiaries including Faze Three US LLC and Mats and More Private Limited to manage international distribution and specific product lines.

🌍 External Factors

Industry Trends

The home textile industry is benefiting from a shift in global sourcing away from China. Faze Three is positioning itself by expanding capacity and focusing on value-added technical textiles to capture this growing demand.

Competitive Landscape

Competes with other Indian and global home textile manufacturers. Competitive dynamics are driven by the ability to manufacture large volumes and fast design turnaround.

Competitive Moat

The moat is built on 30+ years of operational experience, long-term relationships with global retailers, and a debt-free capital structure. These advantages are sustainable due to high entry barriers in large-scale retail supply chains.

Macro Economic Sensitivity

Highly sensitive to global economic cycles and consumer spending in the US market. Revenue growth is linked to the 'China Plus One' geopolitical strategy.

Consumer Behavior

Demand is driven by international retail trends in home decor and functional textiles like patio mats.

Geopolitical Risks

Significant risk from US-China trade relations and potential tariff-related uncertainties which could pressure profitability and debt coverage metrics.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to manufacturing standards and export-import regulations. The company emphasizes ethical business practices and compliance with all applicable statutes.

Taxation Policy Impact

The effective tax rate is reflected in the PBT of INR 52.7 Cr vs PAT of INR 40.7 Cr for FY25, implying a tax rate of approximately 22.8%.

⚠️ Risk Analysis

Key Uncertainties

Tariff-related uncertainties in the US market and raw material price volatility (polyester/cotton) are the primary risks, with potential to impact margins by 300-400 bps.

Geographic Concentration Risk

Over 50% of revenue is concentrated in the US market.

Third Party Dependencies

Dependency on international retailers for stable revenue visibility; however, the customer base is described as 'wide' and 'diversified'.

Technology Obsolescence Risk

Low risk in textiles, but the company mitigates this through constant investment in state-of-the-art manufacturing facilities and design capabilities.

Credit & Counterparty Risk

Trade receivables stood at INR 90.83 Cr as of March 2025. The company deals with reputed international retailers, which generally implies higher receivable quality.