💰 Financial Performance

Revenue Growth by Segment

Total revenue grew by 18.5% YoY to INR 102.99 Cr in FY25 from INR 86.89 Cr in FY24. H1 FY26 revenue showed a slight contraction of 2.5% to INR 49.90 Cr compared to INR 51.21 Cr in H1 FY25, primarily due to timing of export shipments.

Geographic Revenue Split

The company is a 100% Export Oriented Unit (EOU) with approximately 75-80% of revenue derived from exports. The USA is the primary market accounting for ~80% of total exports, followed by Europe at ~10% and Australia at ~10%. Other regions include the UK, South Africa, and the Gulf.

Profitability Margins

Net Profit Margin significantly improved to 14.58% in FY25 from 8.37% in FY24. H1 FY26 Net Profit Margin further expanded to 15.25% (INR 7.61 Cr) from 12.58% (INR 6.44 Cr) in H1 FY25, driven by operational discipline and lower raw material costs.

EBITDA Margin

EBITDA Margin stood at 21.83% (INR 22.46 Cr) in FY25, a substantial increase from 14.32% (INR 11.35 Cr) in FY24. This 751 bps improvement resulted from better absorption of fixed costs and moderated input prices. H1 FY26 EBITDA margin remained strong at 21.00%.

Capital Expenditure

The company is undertaking a major debt-funded expansion of INR 168.52 Cr for a new 12,000 MTPA Spun-lace fabric project. As of September 30, 2025, INR 30.32 Cr (18% of project cost) has been incurred through internal accruals.

Credit Rating & Borrowing

Assigned CARE BBB-; Stable for long-term bank facilities (INR 115 Cr) and CARE A3 for short-term facilities (INR 20 Cr) in November 2025. The company was previously zero-debt but is now leveraging to fund its INR 168.52 Cr capex.

⚙️ Operational Drivers

Raw Materials

Polypropylene (PP) is the primary raw material, accounting for the majority of the INR 55.25 Cr material cost in FY25 (approx. 54% of total revenue).

Import Sources

Raw materials are partially imported to provide a natural hedge against foreign exchange fluctuations. Specific countries are not named, but critical machinery for expansion is sourced from China.

Capacity Expansion

Current installed capacity is 8,000 MTPA (5,000 MTPA Spun-bond and 3,000 MTPA Melt-blown). Planned expansion will add 12,000 MTPA of Spun-lace fabric, bringing total capacity to 20,000 MTPA by January 2027.

Raw Material Costs

Cost of materials consumed was INR 55.25 Cr in FY25, up 16.8% from INR 47.31 Cr in FY24. Procurement strategies involve balancing domestic and imported PP to manage price volatility.

Manufacturing Efficiency

Profitability improved in FY25 due to better absorption of fixed costs across its 85,000 sq. ft. Daman plant. PBILDT margins recovered from a low of 4.94% in FY23 to 21.83% in FY25.

Logistics & Distribution

Vulnerability to freight rates is high; elevated logistics costs in FY23 previously compressed margins to 4.94% as they could not be fully passed to international clients.

📈 Strategic Growth

Expected Growth Rate

150%

Growth Strategy

Growth will be achieved by more than doubling total capacity from 8,000 MTPA to 20,000 MTPA through the INR 168.52 Cr Spun-lace project. The strategy focuses on high-growth segments like hygiene, medical, and agro-textiles, leveraging 40 years of technical expertise and 100% EOU status.

Products & Services

Spun-bond non-woven fabrics, Melt-blown non-woven fabrics, medical and industrial gowns, overalls, aprons, car covers, and specialized fabrics for hygiene and agriculture.

Brand Portfolio

Fiberweb

New Products/Services

Spun-lace non-woven fabrics are the primary new product line, expected to contribute significantly to revenue post-2027 commissioning.

Market Expansion

Targeting expansion in technical textile applications for defense, infrastructure, and smart wearable textiles in FY 2025-26.

Market Share & Ranking

Positioned as a leader in the Indian non-woven fabric industry; first in India to venture into spun-bond non-woven fabrics.

Strategic Alliances

The company is exploring technological partnerships and inorganic growth opportunities to stay competitive in the evolving technical textile industry.

🌍 External Factors

Industry Trends

The technical textile sector is growing due to increased adoption in medical, defense, and infrastructure. Global supply diversification (China+1) is benefiting Indian exporters like Fiberweb.

Competitive Landscape

Operates in a competitive global market for non-woven fabrics, competing with both domestic manufacturers and large-scale international producers.

Competitive Moat

Sustainable moat built on a 40-year operational track record, specialized technical expertise in non-woven fabrics, and long-standing relationships with international clients in regulated sectors like healthcare.

Macro Economic Sensitivity

Highly sensitive to global demand for hygiene and medical products. Margins are sensitive to global crude oil prices which dictate Polypropylene (PP) costs.

Consumer Behavior

Rising global hygiene awareness and demand for disposable medical wear are driving long-term volume growth for melt-blown and spun-bond products.

Geopolitical Risks

Trade barriers or supply chain disruptions in China could delay the INR 168.52 Cr capex project due to machinery import dependencies.

⚖️ Regulatory & Governance

Industry Regulations

Must comply with international standards for medical and hygiene products; subject to 100% EOU regulations and export-import statutes.

Environmental Compliance

Certified ISO 14001:2015 (Environmental Management) and ISO 45001:2018 (Occupational Health and Safety).

Taxation Policy Impact

Effective tax rate is approximately 11.4% based on FY25 figures (INR 1.93 Cr tax on INR 16.93 Cr PBT). Deferred Tax Asset of INR 1.68 Cr as of March 2025.

⚠️ Risk Analysis

Key Uncertainties

Project execution risk for the INR 168.52 Cr expansion; only 18% complete as of late 2025. Potential for cost/time overruns could impact the 2027 COD.

Geographic Concentration Risk

Extreme concentration with ~80% of exports going to the USA, making the company vulnerable to US-specific economic or regulatory shifts.

Third Party Dependencies

High dependency on Chinese machinery suppliers for the new project and global PP producers for raw materials.

Technology Obsolescence Risk

The shift toward 'smart' textiles and sustainable/biodegradable non-wovens requires ongoing R&D to avoid obsolescence.

Credit & Counterparty Risk

Trade receivables increased to INR 16.67 Cr in FY25 from INR 12.52 Cr in FY24, reflecting higher sales volume but requiring careful monitoring of international credit terms.