šŸ’° Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations fell 8.9% YoY to INR 155.19 Cr in FY25. Standalone revenue fell 28.1% YoY to INR 64.89 Cr. The Traditional Textiles Processing Division and Wind Power Division are the primary segments.

Geographic Revenue Split

The company caters to both Domestic and Global Markets, though specific percentage splits by region are not disclosed in available documents.

Profitability Margins

Net Profit Margin improved from 0.85% to 5.19% in FY25, largely due to an exceptional item of INR 12.85 Cr. Operating Profit Margin declined from 2.41% to -0.18% due to global textile market volatility.

EBITDA Margin

Operating Profit Margin was -0.18% in FY25, representing a 2.59% decline YoY, reflecting core profitability challenges from market volatility and operational disruptions.

Capital Expenditure

The company invested INR 6.18 Cr in property, plant, and equipment during the first half of FY26 (ended September 30, 2025).

Credit Rating & Borrowing

The Interest Coverage Ratio stood at 4.50 times in FY25, a 32.30% decrease from the previous year. Consolidated interest costs for H1 FY26 were INR 1.59 Cr.

āš™ļø Operational Drivers

Raw Materials

High-quality cotton fabric is the primary raw material, though its specific percentage of total cost is not disclosed.

Manufacturing Efficiency

Inventory turnover was 92.04 times in FY25, representing a 31.36% decrease YoY, indicating reduced manufacturing throughput efficiency.

šŸ“ˆ Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is targeted through infrastructure upgrades, continuous sourcing of high-quality cotton fabric, and leveraging the Traditional Textiles Processing Division's capabilities in bleaching, dyeing, and printing for global markets.

Products & Services

Bleached, dyed, printed, and finished fabrics used for apparels and home textiles.

Brand Portfolio

Mahalaxmi Fabric Mills.

Market Expansion

The company is focusing on strengthening business relationships and catering to both Domestic and Global Markets.

šŸŒ External Factors

Industry Trends

The textile industry is experiencing global volatility; the company is positioning itself by focusing on sustainable practices and high-quality fabric processing.

Competitive Moat

Moat is derived from integrated processing capabilities (bleaching to finishing) and a captive wind power division, providing some cost and operational stability.

Macro Economic Sensitivity

Highly sensitive to global and domestic supply/demand conditions and changes in government regulations or tax laws.

Consumer Behavior

Demand is driven by apparel and home textile trends in both domestic and international markets.

Geopolitical Risks

Global market volatility in textile products is cited as a major factor for margin compression.

āš–ļø Regulatory & Governance

Industry Regulations

Operations are subject to government regulations, tax laws, and textile industry standards.

Environmental Compliance

The company places special focus on adopting sustainable business practices and operates a wind power division.

Taxation Policy Impact

Current tax provision for H1 FY26 was INR 1.07 Cr on a consolidated basis.

āš ļø Risk Analysis

Key Uncertainties

Operational risks from fire incidents (as seen in April 2024) and volatility in global textile demand are primary uncertainties.

Third Party Dependencies

Dependency on raw cotton fabric suppliers is implied, but specific vendor concentration is not disclosed.

Technology Obsolescence Risk

The company is mitigating technology risks by continuously upgrading its infrastructure.

Credit & Counterparty Risk

Debtor turnover was 3.88 times in FY25, a 33.49% change from the previous year, indicating shifting receivables quality.