💰 Financial Performance

Revenue Growth by Segment

The company identifies 'Cotton' as its only business segment. For the half-year ended September 30, 2025, consolidated total income was INR 153.71 Cr (15,370.79 lakhs). Standalone revenue from operations for the same period was INR 153.71 Cr.

Geographic Revenue Split

Not explicitly disclosed in percentages, but the company is based in Jalna, Maharashtra, and holds a 'Govt. Recognized Star Export House' status, indicating a mix of domestic and international revenue.

Profitability Margins

The company reported a consolidated net loss of INR 3.77 Cr (377.14 lakhs) for the half-year ended September 30, 2025, resulting in a negative net profit margin of -2.45%.

EBITDA Margin

Not explicitly disclosed as a percentage; however, the company reported a standalone loss before tax of INR 3.77 Cr for the half-year ended September 30, 2025.

Capital Expenditure

The company undertook a partial sale of plant and machinery during the reporting period as part of an asset rationalization and modernization initiative. Specific INR Cr values for new planned CAPEX were not disclosed.

⚙️ Operational Drivers

Raw Materials

Cotton is the primary raw material, representing 100% of the company's business segment focus.

Import Sources

Not explicitly disclosed, though the company operates in Jalna, Maharashtra, a major cotton-producing region in India.

Key Suppliers

Not specifically named, but the company has a 'significant advance' outstanding to a creditor whose connected entities are showing signs of financial stress.

Capacity Expansion

Current installed capacity is not disclosed in MT/units. The company is currently rationalizing its existing capacity through the sale of older plant and machinery to modernize operations.

Raw Material Costs

Raw material costs are a major expense driver. Management cited cotton price fluctuations as a primary business weakness, though specific YoY cost change percentages were not provided.

Manufacturing Efficiency

The company is pursuing modernization through asset rationalization to improve long-term manufacturing efficiency.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is focusing on asset rationalization and modernization of its plant and machinery to improve operational viability. It also leverages its Star Export House status to maintain market presence in the textile sector.

Products & Services

Cotton yarn and processed cotton textiles.

Brand Portfolio

Laxmi Cotspin.

Strategic Alliances

Wholly owned subsidiaries include Laxmi Spintex Private Limited and Laxmi Surgical Healthcare Private Limited.

🌍 External Factors

Industry Trends

The textile industry is currently seeing a shift toward modernization and asset rationalization to combat rising input costs and global competition.

Competitive Landscape

The company faces competition in the cotton spinning and textile sector from both domestic and international players.

Competitive Moat

The company's moat includes its 'Star Export House' status and a management team with over 10 years of experience in the Jalna textile hub. Sustainability is currently challenged by internal control deficiencies.

Macro Economic Sensitivity

High sensitivity to cotton commodity price cycles and currency exchange rate fluctuations.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with the Companies Act 2013 and SEBI Listing Regulations 2015. Auditors noted non-compliance regarding unauthorized loans to a subsidiary.

Legal Contingencies

The company reported 'Litigation settlements paid' as an extra-ordinary item in its H1 FY26 profit and loss statement, though the specific case values were not detailed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the accuracy of financial reporting due to the lack of inventory records and the potential non-recoverability of significant advances given to a financially stressed creditor.

Geographic Concentration Risk

Operations are concentrated in Jalna, Maharashtra.

Third Party Dependencies

High dependency on a specific creditor/supplier entity to whom significant advances have been made without adequate impairment evaluation.

Technology Obsolescence Risk

The company is actively addressing technology risks by selling off older machinery to modernize its production line.

Credit & Counterparty Risk

High credit risk associated with advances to Laxmi Spintex Private Limited (subsidiary) and a stressed external creditor.