💰 Financial Performance

Revenue Growth by Segment

Total income grew 20.68% YoY to INR 94.82 Cr in FY25 from INR 78.57 Cr. H1 FY26 revenue reached INR 55.02 Cr, a 24.4% increase over H1 FY25. Growth is primarily driven by the Technical Textiles and Rubber Division, while the Processing Division saw revenue of INR 56.64 Cr in FY21 and INR 51.19 Cr in 9MFY22.

Geographic Revenue Split

Exports contributed approximately 18% of total sales as of 9MFY22, up from 16% in FY21. The company is actively targeting global markets for its textile products to drive margin expansion.

Profitability Margins

Net Profit Ratio improved to 18.21% in FY25 from 14.35% in FY24, a 26.91% increase. Operating Profit Margin rose to 24.85% in FY25 from 21.05% in FY24. Profit After Tax for FY25 stood at INR 16.78 Cr compared to INR 11.27 Cr in the prior year.

EBITDA Margin

Operating Profit Margin was 24.85% in FY25, a YoY improvement of 3.80%. PBILDT margins have historically fluctuated, dropping to 9.21% in FY22 due to high input costs before recovering through the technical textiles segment.

Capital Expenditure

In FY25, the company invested INR 6.54 Cr in the purchase of Property, Plant, and Equipment (PPE) and intangible assets, compared to INR 2.90 Cr in FY24, representing a 125% increase in annual capex spend.

Credit Rating & Borrowing

Current credit rating is 'CARE BBB; Stable / CARE A3+' (revised from BBB+/A2). Finance costs for H1 FY26 were INR 0.33 Cr, down from INR 0.54 Cr in H1 FY25, reflecting a 38.8% reduction in interest outgo.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Polyester, Cotton, and Blended Fabrics for the textile division, along with Coal and Chemicals for the processing plant. Coal and chemicals represent a significant portion of processing costs.

Capacity Expansion

The company is undergoing a scheme of arrangement (approved March 2024) to demerge its business divisions into separate entities (Mahalaxmi Fabric Mills and Globale Tessile), which will likely reduce the standalone scale of MRT's operations.

Raw Material Costs

Cost of materials consumed in H1 FY26 was INR 24.47 Cr, representing 44.5% of operational revenue. This is an increase from INR 21.14 Cr in H1 FY25.

Manufacturing Efficiency

Return on Net Worth improved to 24.37% in FY25 from 21.08% in FY24, indicating higher capital efficiency. The company focuses on infrastructure upgradation to maintain competitiveness.

📈 Strategic Growth

Expected Growth Rate

24%

Growth Strategy

Growth is targeted through the Technical Textiles and Rubber Division, focusing on high-margin products. The company is implementing a demerger to streamline operations and is upgrading infrastructure to meet 'fast fashion' and 'circular economy' demands while maintaining a healthy order book.

Products & Services

Printing blankets (Rubber Division), processed fabrics (Polyester, Cotton, and Blended), and technical textiles.

Brand Portfolio

Mahalaxmi RubTech, Mahalaxmi Fabric Mills, Globale Tessile.

New Products/Services

Focusing on advanced Technical Textiles and sustainable business processes to add value for stakeholders; specific new product revenue contributions are not quantified.

Market Expansion

Targeting global markets for textile products, with a focus on increasing the export contribution beyond the current 18%.

Strategic Alliances

Scheme of arrangement involves demerging divisions into Mahalaxmi Fabric Mills Private Limited and Globale Tessile Private Limited.

🌍 External Factors

Industry Trends

The industry is shifting toward advanced technical textiles and circular economy segments. MRT is positioning itself to capitalize on these through infrastructure upgrades, though slow adoption of recycling tech remains a sector-wide gap.

Competitive Landscape

Operates in a highly competitive and cyclical textile industry with significant pressure from both domestic and global players.

Competitive Moat

The company's moat is built on its specialized manufacturing capabilities in the Technical Textiles and Rubber Division (Printing Blankets), which are less commoditized than standard weaving.

Macro Economic Sensitivity

Highly sensitive to global inflation and currency volatility, which affects export earnings and requires robust financial hedging strategies.

Consumer Behavior

Increasing demand for 'fast fashion' and sustainable/recycled textile products is driving the need for technological advancement.

Geopolitical Risks

Conflicts in Europe and the Middle East are identified as key risks that subdue demand in export markets and increase logistics costs.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Indian Accounting Standards (IND AS) and SEBI (LODR) Regulations. Operations are subject to environmental and pollution control standards for textile processing.

Environmental Compliance

The company faces regulatory risks associated with stringent pollution control norms for its textile processing business, requiring sustained investment in compliance infrastructure.

Taxation Policy Impact

Effective tax rate for FY25 was approximately 23.5% (INR 5.15 Cr tax on INR 21.93 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices (coal/chemicals) and foreign exchange rates could impact margins by 3-5%. Geopolitical instability poses a risk to export volumes.

Geographic Concentration Risk

Approximately 82% of revenue is domestic, with 18% from exports. Manufacturing is concentrated in Gujarat (Sanand and Ahmedabad).

Third Party Dependencies

Dependency on promoters for unsecured loans was noted during the 2022 share buy-back to maintain liquidity.

Technology Obsolescence Risk

Slow adoption of advanced recycling and fast-fashion technologies is a noted weakness that could hinder long-term competitiveness.

Credit & Counterparty Risk

Trade receivables stood at INR 19.06 Cr as of Sept 2025. The company monitors receivables quality, with bad debts written off amounting to INR 0.10 Cr in FY25.