GAJANAND - Gajanand

📊 NSE: GAJANAND 🏢 Textiles - Products 📅 Last Updated: 12/13/2025 22:14

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: Ginning & Pressing and Trading of Cotton. Revenue for the half-year ended September 30, 2025, was INR 18.84 Cr (1,883.56 Lacs). This represents approximately 28.8% of the total revenue of INR 65.29 Cr reported for the full year ended March 31, 2025.

Geographic Revenue Split

Not disclosed in available documents, though the company is registered and operates in Jasdan, Rajkot, Gujarat.

Profitability Margins

Profit before tax (PBT) margin for H1 FY26 was 0.58% (INR 10.86 Lacs). Net profit margin was 6.00% (INR 113.05 Lacs), significantly higher than PBT due to a tax credit of approximately INR 1.02 Cr.

EBITDA Margin

EBITDA for H1 FY26 was INR 52.93 Lacs, representing an EBITDA margin of 2.81%. This is calculated from PBT (INR 10.86 Lacs) plus finance costs (INR 37.97 Lacs) and depreciation (INR 4.10 Lacs).

Capital Expenditure

The company incurred a capital expenditure of INR 0.09 Lacs for the purchase of tangible assets during the half-year ended September 30, 2025.

Credit Rating & Borrowing

Credit rating not disclosed. Borrowing costs for H1 FY26 were INR 37.97 Lacs in finance costs, compared to INR 101.93 Lacs for the full year ended March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Raw cotton (Kapas) is the primary raw material, representing the bulk of the cost of goods sold in the ginning and pressing operations.

Import Sources

Not disclosed in available documents; likely sourced from the Gujarat cotton belt given the company's location in Rajkot.

Capacity Expansion

Current installed capacity and planned expansion details are not disclosed in the available documents.

Raw Material Costs

Purchase of stock-in-trade for H1 FY26 was INR 7.62 Cr. Changes in inventories of finished goods and work-in-progress accounted for a cost of INR 6.17 Cr.

Manufacturing Efficiency

Capacity utilization metrics are not disclosed.

📈 Strategic Growth

Growth Strategy

The company focuses on the ginning, pressing, and trading of cotton. Growth is driven by the volume of cotton processed and traded, leveraging its location in the Gujarat cotton-producing region.

Products & Services

Ginned cotton and pressed cotton bales.

Brand Portfolio

Gajanand.

🌍 External Factors

Industry Trends

The cotton ginning industry is seeing a shift toward more automated pressing and higher quality standards to meet export requirements.

Competitive Landscape

The industry is highly fragmented with numerous small to medium-sized ginning and pressing units in Gujarat.

Competitive Moat

The company's moat is primarily its location in the heart of the Gujarat cotton belt (Jasdan/Rajkot), providing a logistical advantage for procurement. However, this is a common industry advantage and not a unique durable moat.

Macro Economic Sensitivity

Highly sensitive to monsoon patterns affecting cotton crop yields and global textile demand which influences cotton prices.

Consumer Behavior

Demand is driven by the textile industry's requirement for high-quality ginned cotton for spinning.

⚖️ Regulatory & Governance

Industry Regulations

The company is monitoring the impact of the Code on Social Security, 2020, which may affect employee-related contributions once the effective date is notified.