NAGREEKEXP - Nagreeka Exports

📊 NSE: NAGREEKEXP 🏢 Textiles - Cotton/Blended 📅 Last Updated: 12/14/2025 10:12

💰 Financial Performance

Revenue Growth by Segment

Revenue for FY24 grew 13% YoY to INR 559.03 Cr. The company has diversified into home linen and bed linen segments, which now contribute 20%-30% of total revenue, while the core yarn segment contributes the remainder.

Geographic Revenue Split

Bangladesh is a significant export market, though it is currently facing lower-than-expected offtake due to political instability. Domestic sales are driven by stable Indian cotton prices.

Profitability Margins

EBITDA margins improved to 4.48% in FY24 (from 4.16% in FY23) and reached 4.62% in FY25. PAT margins were 1.07% in FY24 but declined to 0.60% in FY25 due to higher interest costs.

EBITDA Margin

EBITDA margin stood at 4.62% in FY25, a slight improvement from 4.48% in FY24, driven by a shift toward high-margin home linen products (8%-9% margins).

Capital Expenditure

The company is increasing its Authorized Share Capital as per the EGM notice dated December 18, 2025. Promoters infused subordinated unsecured loans of INR 9.50 Cr during FY26 to support operations.

Credit Rating & Borrowing

Credit rating is IVR BBB- with a Negative outlook (revised from Stable in August 2025). Borrowing costs have increased, leading to a decline in PAT margins to 0.60% in FY25.

⚙️ Operational Drivers

Raw Materials

Cotton (percentage of total cost not disclosed, but identified as the major cost component).

Import Sources

India (specifically cited as stable Indian cotton prices).

Capacity Expansion

Current capacity not disclosed in MT; however, a production unit was closed in Q1 FY26, resulting in a significant loss of output.

Raw Material Costs

Raw material costs are a major component of total costs; the company is sensitive to Indian cotton price volatility which impacts low-margin operations.

Manufacturing Efficiency

Manufacturing efficiency was adversely impacted in FY26 by the higher-than-anticipated closure of a production unit.

📈 Strategic Growth

Expected Growth Rate

13%

Growth Strategy

Growth is targeted through diversification into high-margin home linen and bed linen segments (8-9% margins). The company is also expanding its capital base by increasing Authorized Share Capital and utilizing rights issue proceeds of INR 37.50 Cr to improve net worth.

Products & Services

Cotton Yarn, Home Linen, Bed Linen.

New Products/Services

Home linen and bed linen segments (recently diversified, contributing 20-30% of revenue).

Market Expansion

Targeting export growth in Bangladesh and diversifying product mix to include higher-value home textiles.

🌍 External Factors

Industry Trends

The cotton spinning industry is cyclical, fragmented, and capital-intensive. There is an industry-wide shift toward integrated high-margin home textile products.

Competitive Landscape

The industry is highly fragmented with intense competition from numerous small and large players in the spinning segment.

Competitive Moat

The company relies on over 4 decades of promoter experience (Patwari family) and established relationships with stakeholders as its primary competitive advantage.

Macro Economic Sensitivity

Highly sensitive to global textile demand and domestic cotton price cycles.

Consumer Behavior

Increasing consumer demand for diversified home linen products is driving the company's shift away from pure yarn trading.

Geopolitical Risks

Political instability in Bangladesh is a primary risk, leading to lower-than-expected export offtake.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to textile manufacturing standards and export-import regulations, though specific pollution or pricing norms are not detailed.

Legal Contingencies

None disclosed outside of capital market regulatory matters.

⚠️ Risk Analysis

Key Uncertainties

Uncertainty regarding the timeline for reopening the closed production unit and the duration of political instability in Bangladesh (impact % not quantified).