MANOMAY - Manomay Tex Indi

📊 NSE: MANOMAY 🏢 Textiles - Products 📅 Last Updated: 12/14/2025 9:35

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment, Textiles, which generated revenue of INR 17,649.78 Lakhs in Q2 FY25, representing a significant growth of 32.30% YoY compared to INR 13,340.92 Lakhs in Q2 FY24. This growth indicates strong demand for the company's textile products and improved market penetration.

Geographic Revenue Split

Not disclosed in available documents. The company is headquartered in Bhilwara, Rajasthan, which is a major textile hub, suggesting a strong domestic presence.

Profitability Margins

Gross Profit Margin improved significantly to 43.92% in Q2 FY25 from 34.31% in Q2 FY24 (up 961 bps). Net Profit Margin stood at 2.71% in Q2 FY25, up 69 bps from 2.02% YoY. While gross margins are healthy, the thin net margin is primarily due to high finance costs and depreciation.

EBITDA Margin

EBITDA Margin was 13.31% in Q2 FY25, a substantial improvement of 554 bps from 7.77% in Q2 FY24. Absolute EBITDA grew by 127.08% YoY to INR 2,354.83 Lakhs, reflecting strong core operational efficiency and better absorption of fixed costs.

Capital Expenditure

Not explicitly disclosed as a planned figure; however, the company recorded depreciation and amortization of INR 775.41 Lakhs in Q2 FY25, up from INR 301.72 Lakhs YoY, suggesting recent commissioning of new assets or capacity.

Credit Rating & Borrowing

Not disclosed in available documents. However, the company faced a high finance cost of INR 937.63 Lakhs in Q2 FY25, which increased significantly from INR 397.12 Lakhs in Q2 FY24, indicating higher debt levels or increased borrowing rates.

⚙️ Operational Drivers

Raw Materials

Textile raw materials (specific fibers not named) accounted for INR 10,022.73 Lakhs in Q2 FY25, representing 56.78% of total revenue from operations.

Key Suppliers

A significant portion of procurement is handled through related parties, specifically Everstrong Marketing Private Limited, with purchases totaling INR 4,232.02 Lakhs (approximately 42% of total material costs).

Raw Material Costs

Cost of materials consumed was INR 10,022.73 Lakhs in Q2 FY25. While absolute material costs rose, the company achieved a higher Gross Profit Margin (43.92%), suggesting effective procurement strategies or the ability to pass on cost increases to customers.

📈 Strategic Growth

Expected Growth Rate

22.00%

Growth Strategy

The company aims to leverage its 22% compounded 3-year sales growth by focusing on its core textile segment. Strategy includes maintaining high gross margins (currently 43.92%) and managing its large-scale operations in Bhilwara. The company utilizes related-party loans (e.g., INR 577.52 Lakhs from Prachi Creation) to fund working capital and operational needs.

Products & Services

Textile products (fabrics/garments as per industry segment).

Strategic Alliances

The company has no subsidiaries, associates, or joint ventures as of September 30, 2025.

🌍 External Factors

Industry Trends

The textile industry is evolving with a focus on environmental and safety standards. Manomay is positioning itself by adhering to these standards to ensure a safe working environment and long-term sustainability.

Competitive Landscape

The company operates in a competitive textile market with a current market capitalization of approximately INR 407 Cr and a PE ratio of 41.46.

Competitive Moat

The company's moat is built on its established presence in the Bhilwara textile cluster and its integrated relationship with promoter-group entities for supply and distribution, though high leverage remains a challenge.

Macro Economic Sensitivity

The textile industry is sensitive to consumer discretionary spending and inflation. A 32.3% revenue growth suggests the company is currently benefiting from a positive demand cycle.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to Indian Accounting Standards (Ind AS 34) and SEBI Listing Obligations (Regulation 33).

Environmental Compliance

The company emphasizes adhering to environmental and safety standards, though specific ESG spend in INR is not disclosed.

Taxation Policy Impact

Current tax expense for Q2 FY25 was INR 168.43 Lakhs, with a deferred tax credit of INR 5.66 Lakhs.

⚠️ Risk Analysis

Key Uncertainties

High financial leverage (Debt/Equity 2.16) and high finance costs (INR 937.63 Lakhs per quarter) pose a significant risk to net profitability. Any downturn in the textile cycle could make debt servicing difficult.

Geographic Concentration Risk

Operations are concentrated in Bhilwara, Rajasthan, making the company susceptible to regional industrial policies or labor issues.

Third Party Dependencies

Significant dependency on related parties for both procurement (Everstrong Marketing: INR 4,232.02 Lakhs) and financing (multiple promoter-group loans).