LAMBODHARA - Lambodhara Text.

📊 NSE: LAMBODHARA 🏢 Textiles - Cotton/Blended 📅 Last Updated: 12/14/2025 9:10

💰 Financial Performance

Revenue Growth by Segment

Total revenue for FY2025 was INR 231.67 Cr, representing a 19% YoY growth. For H1 FY2026, revenue reached INR 121.64 Cr, up 4.4% YoY. Segment-wise revenue for H1 FY2026: Textiles INR 113.47 Cr (93.3% of total), Power Generation INR 10.05 Cr (8.3%), and Real Estate INR 0.97 Cr (0.8%).

Profitability Margins

Operating Profit Margin improved from 11.52% in FY2024 to 12.64% in FY2025. Net Profit Margin increased from 2.38% to 2.95% over the same period. Return on Net Worth saw a significant 40.65% increase, rising from 4.28% to 6.02% in FY2025.

EBITDA Margin

Historical operating margins were maintained at ~15% due to better yarn price realizations, but moderated to 9.6% in H1 FY2024 due to demand pressure and rising raw material costs.

Capital Expenditure

The company recently completed a debt-funded capacity addition to support revenue growth. Total rated bank lines include term loans of INR 50.01 Cr and working capital facilities of INR 15.00 Cr.

Credit Rating & Borrowing

ICRA reaffirmed ratings at [ICRA]A- (Stable) for long-term and [ICRA]A2+ for short-term facilities. Finance costs for H1 FY2026 were INR 5.25 Cr, a 46.9% increase YoY from INR 3.57 Cr, reflecting higher debt servicing requirements.

⚙️ Operational Drivers

Raw Materials

Synthetic fibers and yarn (specifically polyester and viscose staple fibers) are the primary raw materials, with costs significantly impacting the 9.6% margin moderation seen in recent cycles.

Capacity Expansion

Recent capacity additions have been implemented to overcome previous constraints that limited economies of scale. The expansion is expected to drive revenue growth over the medium term.

Raw Material Costs

Cost of materials consumed in H1 FY2026 was INR 59.50 Cr, representing approximately 48.9% of total revenue. Profitability is highly sensitive to fluctuations in synthetic fiber prices.

Manufacturing Efficiency

Inventory turnover ratio improved by 9.71% to 12.99 in FY2025, indicating higher efficiency in moving finished textile products.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is driven by the recent capacity expansion in the synthetic yarn segment and a strategic shift toward value-added products. The company aims to maintain its established market position and leverage its extensive promoter experience of over two decades.

Products & Services

Synthetic yarn (manufactured and traded), power generation (wind/solar), and real estate development.

Brand Portfolio

Lambodhara Textiles.

🌍 External Factors

Industry Trends

The synthetic yarn industry is witnessing a recovery in H1 FY2025 following a weak FY2024. Future growth is expected to be supported by a healthy demand environment and better utilization of installed capacities.

Competitive Landscape

The sector is capital-intensive and highly competitive, requiring continuous investment in capacity and efficiency to maintain market share.

Competitive Moat

The company's moat is built on its established market position in the niche synthetic yarn segment and its presence in value-added products, which provide higher margins than commodity yarns.

Macro Economic Sensitivity

The business is sensitive to global inflation and long-term economic conditions that affect consumer spending on textiles.

Consumer Behavior

Demand is cyclical; a recent downtrend in yarn prices reflects temporary pressure on consumer demand for textile products.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to industrial safety standards; the company holds structured safety meetings and safety programs for its workforce throughout the year.

Taxation Policy Impact

Current tax liabilities were INR 2.55 Cr as of September 30, 2025. The company maintains a liability for current tax (net) of INR 3.63 Cr.

Legal Contingencies

No material resignations of Independent Directors occurred during the financial year, and the company maintains an Internal Control System to ensure reliability of financial records.

⚠️ Risk Analysis

Key Uncertainties

Cash accruals are expected to fall by ~50% in the current fiscal on a YoY basis due to margin pressure and higher finance costs. Debt coverage indicators are also expected to moderate.