JAKHARIA - Jakharia Fabric

📊 NSE: JAKHARIA 🏢 Textiles - Products 📅 Last Updated: 12/14/2025 8:34

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for the single segment of textile processing fell 28.9% YoY to INR 6,272.45 lakhs in FY25. Standalone revenue for H1 FY26 grew 2.37% YoY to INR 3,411.72 lakhs compared to INR 3,332.89 lakhs in H1 FY25.

Profitability Margins

In FY25, the cost of material consumed represented 43.6% of revenue (INR 2,737.38 lakhs). Standalone Profit Before Tax for H1 FY26 was INR 298.41 lakhs, compared to INR 439.98 lakhs for the full year FY25.

Credit Rating & Borrowing

CRISIL migrated the rating to 'CRISIL B/Stable Issuer Not Cooperating' due to lack of management cooperation and information. Long-term borrowings were INR 799.43 lakhs as of March 31, 2025, but were significantly reduced to INR 35.44 lakhs on a standalone basis by September 30, 2025.

⚙️ Operational Drivers

Raw Materials

Textile raw materials and chemicals (categorized as 'Cost of material consumed' totaling INR 2,737.38 lakhs in FY25, or 43.6% of revenue).

Raw Material Costs

Raw material costs were INR 2,737.38 lakhs in FY25, representing 43.6% of revenue. This was a 38% decrease from INR 4,416.08 lakhs in FY24, tracking the overall revenue decline.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is navigating a family settlement executed on June 30, 2024, which involves asset and management reallocation. Growth is currently focused on stabilizing the core textile processing business following a 28.9% revenue contraction in FY25.

Products & Services

Textile processing services, including dyeing and finishing of fabrics.

Brand Portfolio

Jakharia

🌍 External Factors

Industry Trends

The textile processing industry is currently facing volume volatility, as evidenced by Jakharia's 28.9% revenue decline in FY25 followed by a modest 2.37% recovery in H1 FY26. The company is positioned as an SME listed entity.

Competitive Moat

The company lacks a clear durable moat as evidenced by its 'Issuer Not Cooperating' status and auditor qualifications regarding PPE records, which suggest internal governance risks.

⚖️ Regulatory & Governance

Industry Regulations

The company is subject to textile processing standards and pollution norms, though specific compliance costs are not listed.

Legal Contingencies

Pending tax disputes include INR 2,610 (AY 2015-16), INR 3,30,590 (AY 2016-17 at CPC Bangalore), and INR 1,47,200 (TDS for 2023-24 via Traces), totaling approximately INR 4.80 lakhs.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the impact of the family settlement (June 2024) and the lack of proper quantitative records for PPE, which could lead to material misstatements of asset values.