💰 Financial Performance

Revenue Growth by Segment

Operating income declined by 33% to INR 944.43 Cr in FY24, primarily due to a slowdown in export demand in the knitted fabrics segment. For the half-year ended September 30, 2025, the company reported a standalone loss before tax of INR 44.51 Cr.

Geographic Revenue Split

Not disclosed in available documents, though management notes a significant impact from a slowdown in global export demand, particularly affecting knitted fabric sales.

Profitability Margins

The company reported an operating loss (EBITDA) of INR 31.26 Cr in FY24. Standalone Profit Before Tax for the half-year ended September 30, 2025, was a loss of INR 44.51 Cr, compared to a loss of INR 83.00 Cr for the full year ended March 31, 2025.

EBITDA Margin

Operating margin was negative in FY24, with an operating loss of INR 31.26 Cr on revenue of INR 944.43 Cr (approx -3.31%). Management expects near-term improvement in operational profitability through cost optimization.

Capital Expenditure

Not disclosed in available documents, but management is currently focused on asset monetization rather than expansion, with non-current assets held for sale increasing 252% to INR 71.63 Cr as of September 30, 2025.

Credit Rating & Borrowing

The company maintains a 'Stable' outlook. Current standalone borrowings were INR 330.94 Cr as of September 30, 2025, a 19.9% reduction from INR 413.30 Cr in March 2025. Gearing is targeted to remain below 1.8x.

⚙️ Operational Drivers

Raw Materials

Not disclosed in available documents, though the company's primary manufacturing focus is on yarn, woven fabric, and knitted fabric.

Capacity Expansion

Not disclosed in available documents; current focus is on rationalizing existing operations and prioritizing high-value segments.

📈 Strategic Growth

Expected Growth Rate

None

Growth Strategy

Growth will be achieved through asset monetization to address liquidity, rationalizing operations to focus on high-value segments, and cost optimization to restore operational profitability. The company also leverages its Italian joint venture, Gruppo P&P Loyal Spa, which contributed INR 12.11 Cr in profit share for H1 FY26.

Products & Services

Yarn, woven fabric, and knitted fabric.

Brand Portfolio

LOYALTEX

New Products/Services

Management is prioritizing high-value segments within its existing yarn and fabric portfolio to enhance profitability.

Strategic Alliances

Maintains a foreign joint venture, Gruppo P&P Loyal Spa, in Italy.

🌍 External Factors

Industry Trends

The industry is currently facing a slowdown in export demand for knitted fabrics, leading companies to shift focus toward operational efficiency and high-value product segments.

Competitive Moat

The company's moat is built on long-standing customer relationships and a diverse product profile across yarn and multiple fabric types, though sustainability is currently challenged by macro demand shifts.

Macro Economic Sensitivity

Highly sensitive to global textile demand and export market conditions.

Consumer Behavior

Shifts in global demand for specific fabric types (e.g., knitted vs. woven) directly impact segment-wise capacity utilization.

Geopolitical Risks

Exposure to international trade barriers and economic slowdowns in export destinations.

⚖️ Regulatory & Governance

Industry Regulations

Operates as a 'Four Star Export House' recognized by the Government of India. The company noted a technical non-compliance with SEBI Regulation 33(3)(h) regarding the review of its overseas joint venture results due to their materiality relative to the parent's losses.

Environmental Compliance

The company is Integrated Management System certified.

Legal Contingencies

Not disclosed in available documents; however, the company states it has complied with statutory provisions and has not faced penalties from stock exchanges or SEBI in the last three years.

⚠️ Risk Analysis

Key Uncertainties

Key risks include the prolonged impact of demand slowdowns and the successful execution of asset monetization plans to stabilize the liquidity position.

Geographic Concentration Risk

Not disclosed in available documents, but heavily reliant on export markets.

Credit & Counterparty Risk

Trade receivables stood at INR 90.85 Cr as of September 30, 2025, representing a significant portion of current assets (approx 25%).