GLOBE - Globe Textiles

📊 NSE: GLOBE 🏢 Textiles - Products 📅 Last Updated: 12/13/2025 22:24

💰 Financial Performance

Revenue Growth by Segment

Total revenue for Q2 FY2025-26 reached INR 158.56 Cr, representing a 6.81% increase from INR 148.45 Cr in Q1 FY2025-26. Business segments include yarns, fabrics, denim, home textiles, and garments, with management reporting healthy growth across all major product segments despite cost pressures.

Geographic Revenue Split

The company serves both domestic and international markets; however, the specific percentage split between regions is not disclosed in the available documents.

Profitability Margins

Profit After Tax (PAT) for Q2 FY2025-26 was INR 4.46 Cr, a surge of 219.94% compared to INR 1.40 Cr in the previous quarter. The PAT margin improved from 0.94% in Q1 FY2026 to 2.81% in Q2 FY2026 due to improved operational efficiency.

EBITDA Margin

For FY2024-25, EBITDA stood at INR 24.85 Cr (4.73% margin) compared to INR 22.86 Cr (5.30% margin) in FY2023-24. While absolute EBITDA grew 8.67% YoY, the margin percentage declined slightly due to cost pressures. Historically, EBITDA increased by 35.39% between FY22 and FY24.

Capital Expenditure

Fixed assets increased significantly by INR 51.01 Cr in H1 FY2025-26, rising from INR 28.48 Cr as of March 31, 2024, to INR 79.49 Cr as of September 30, 2025, reflecting major investments in manufacturing capacity.

Credit Rating & Borrowing

Current borrowings increased by 92.13% to INR 129.60 Cr in H1 FY2025-26 from INR 67.45 Cr in FY2023-24. Specific credit ratings and interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include cotton, yarns, and fabrics. While the exact percentage of total cost for each is not disclosed, management highlighted 'cotton leadership' and noted that raw material price fluctuations are a key risk to margins.

Capacity Expansion

The company recently acquired Globe Danwash to expand operations, funded by a INR 45.04 Cr rights issue. Fixed assets grew from INR 28.48 Cr to INR 79.49 Cr in H1 FY2025-26, indicating a substantial increase in installed capacity.

Raw Material Costs

Raw material costs are a significant portion of the cost structure; management noted cost pressures in Q2 FY2025-26 but maintained profitability through operational efficiency. Procurement strategies focus on integrated in-house facilities to control quality and costs.

Manufacturing Efficiency

Management attributes the 220% QoQ PAT surge in Q2 FY2025-26 to improved operational efficiency and higher margins. The company employs 674 people as of March 31, 2025.

📈 Strategic Growth

Expected Growth Rate

21.90%

Growth Strategy

Growth will be driven by the demerger of the online business (brands Indigenx and Orijean) to focus on core manufacturing, the acquisition of Globe Danwash for INR 45.04 Cr, and the expansion of physical presence through a new virtual office in Mumbai. The company is also leveraging its integrated in-house facilities to capture higher margins in the denim and home textile segments.

Products & Services

Yarns, fabrics, denim, home textiles, and garments.

Brand Portfolio

Indigenx, Orijean.

New Products/Services

The company is focusing on innovative and customized textile solutions; specific revenue contribution percentages for new products were not disclosed.

Market Expansion

Opened a new virtual branch office in Mumbai in November 2025 to strengthen regional presence and enhance business operations.

Strategic Alliances

Acquisition of Globe Danwash to integrate washing and processing capabilities.

🌍 External Factors

Industry Trends

The Indian textile industry is seeing a shift toward integrated operations and expanding exports. Globe is positioning itself as a leader in cotton-based textiles with a focus on sustainable growth and global standards.

Competitive Landscape

Operates in a competitive market with pressures from raw material costs and other textile manufacturers; management focuses on 'Strategic Industry Advantage' through cotton leadership.

Competitive Moat

The moat is built on integrated in-house operations which ensure quality control and efficiency, and strong customer retention through a commitment to global standards. This is sustainable as it creates a cost and quality advantage over non-integrated competitors.

Macro Economic Sensitivity

Highly sensitive to economic conditions and raw material price fluctuations, particularly in the cotton and textile sectors.

Consumer Behavior

Improving demand conditions in major product segments were noted by management in Q2 FY2025-26.

Geopolitical Risks

Exposure to international markets makes the company vulnerable to trade barriers and global economic shifts.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to textile manufacturing standards and direct tax laws. The company recently underwent a name change to Globe Enterprises (India) Limited, complying with Regulation 45 of SEBI LODR.

Taxation Policy Impact

The effective tax rate for FY2024-25 was approximately 26.9%, with a tax provision of INR 2.52 Cr on a Profit Before Tax of INR 9.36 Cr.

Legal Contingencies

The company faces significant pending litigations primarily concerning direct taxes arising in the ordinary course of business. As of March 31, 2025, the amounts involved are described as significant by auditors, requiring management judgment for provisions.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices (cotton) could impact margins by over 10-15% if not passed through. Regulatory changes and unfavorable outcomes in tax litigations also pose financial risks.