💰 Financial Performance

Revenue Growth by Segment

Total Operating Income was INR 2,026.76 Cr in FY23, representing a 6.8% decrease from INR 2,175.57 Cr in FY22. For 6M FY24, the company reported a top line of INR 975.08 Cr.

Geographic Revenue Split

Not disclosed in available documents, though the company maintains a well-established network of distributors in the domestic market and engages in exporting textile products.

Profitability Margins

PAT margin improved significantly to 2.20% in FY24 from 0.03% in FY23. PBT margin also rose to 3.18% in FY24 from 0.25% in FY23, driven by improved cost of production.

EBITDA Margin

EBITDA margin stood at 5.47% for 6M FY24, an improvement from 4.16% in FY23. EBITDA was INR 84.36 Cr in FY23 compared to INR 160.10 Cr in FY22.

Capital Expenditure

Historical capital expenditure for the purchase of property, plant, and equipment was INR 8.38 Cr in FY25, an 81% reduction from INR 44.41 Cr in FY24.

Credit Rating & Borrowing

The company holds a long-term rating of IVR BBB-/Stable and a short-term rating of IVR A3. Finance charges were INR 36.74 Cr in FY25, down 22% from INR 47.23 Cr in FY24.

⚙️ Operational Drivers

Raw Materials

Cotton and Yarn are the primary raw materials. Margin improvements in 6M FY24 were specifically attributed to a correction in raw material prices.

Key Suppliers

Chiripal Group companies are primary suppliers, leveraging the group's long presence in the textile business.

Capacity Expansion

Current installed capacity is 110 million metres per annum (MMPA), which has been expanded over the years from an initial 20 MMPA.

Raw Material Costs

Improvement in FY24 profitability was primarily due to a reduction in the cost of production. Raw material price corrections led to EBITDA margin expansion to 5.47% in 6M FY24.

Manufacturing Efficiency

The company operates one of the largest denim manufacturing capacities in India at 110 MMPA. Manufacturing efficiency is supported by integrated production facilities.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is driven by its position as one of India's largest denim manufacturers (110 MMPA) and its integrated manufacturing model (spinning to finishing). The company leverages the Chiripal Group's established market position and distributor network to maintain market share.

Products & Services

Denim fabric and various textile products for domestic and export markets.

Brand Portfolio

Nandan Denim, Nandan, Chiripal Group.

Market Expansion

The company maintains a strong domestic distributor network and relationships with clients established through the Chiripal Group's long-term presence.

Market Share & Ranking

NDL is one of the largest denim manufacturers in India with a 110 MMPA capacity.

Strategic Alliances

NDL is a part of the Chiripal Group, providing it with established market positioning and group-level synergies.

🌍 External Factors

Industry Trends

The denim industry is characterized by inherent cyclicality and periods of excess capacity. NDL is positioned as a leading player with 110 MMPA capacity to navigate these shifts.

Competitive Landscape

Operates in a highly competitive and fragmented textile industry with inherent cyclicality.

Competitive Moat

NDL's moat is built on its scale as one of India's largest denim producers and its fully integrated manufacturing process, which provides cost leadership and quality control.

Macro Economic Sensitivity

Highly sensitive to raw material price corrections; a correction in prices in 6M FY24 improved EBITDA margins to 5.47%.

⚖️ Regulatory & Governance

Industry Regulations

The company expected to receive a Technology Upgradation Fund Subsidy (TUFS) of INR 35.00 Cr in H2 FY24 to boost liquidity.

Taxation Policy Impact

Current tax paid was INR 4.85 Cr in FY25. Deferred tax liabilities stood at INR 47.68 Cr as of March 31, 2025.

Legal Contingencies

The company reported no material foreseeable losses on long-term contracts as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Cyclicality in the denim industry and raw material price volatility are the primary business risks.

Geographic Concentration Risk

Strong domestic focus through a distributor network, though specific regional revenue percentages are not disclosed.

Third Party Dependencies

Dependency on the Chiripal Group for market positioning and established client relationships.

Credit & Counterparty Risk

Provision for doubtful debts was a reversal of INR 6.29 Cr in FY24, indicating improved receivable quality, though a small provision of INR 0.35 Cr was made in H1 FY26.