ORBTEXP - Orbit Exports

📊 NSE: ORBTEXP 🏢 Textiles - Processing 📅 Last Updated: 12/14/2025 10:43

💰 Financial Performance

Revenue Growth by Segment

The Textile Business segment grew 7.04% YoY in H1 FY26, reaching INR 131.17 Cr compared to INR 122.55 Cr in H1 FY25. The Investment segment saw a significant growth of 97.27% YoY, increasing from INR 1.39 Cr to INR 2.73 Cr in the same period.

Geographic Revenue Split

The company has an export-dominated revenue profile, with a significant presence in the US market through its subsidiary, Orbit Inc. Orbit Inc generated revenues of INR 10.85 Cr in H1 FY26, contributing approximately 8.8% to the consolidated revenue of INR 123.06 Cr.

Profitability Margins

Profit Before Tax (PBT) margin for H1 FY26 was 24.39% (INR 32.66 Cr on INR 133.91 Cr total income), a decline from 27.89% in H1 FY25. Net profit for the US subsidiary Orbit Inc was INR 0.51 Cr for H1 FY26.

EBITDA Margin

Operating profit before changes in operating assets and liabilities was INR 35.83 Cr for H1 FY26, representing a 11.72% increase YoY from INR 32.08 Cr in H1 FY25.

Capital Expenditure

The company has planned a partially debt-funded capital expenditure of INR 30 Cr for FY2026. Additionally, maintenance capex is projected at approximately INR 10 Cr in the medium term.

Credit Rating & Borrowing

Orbit Exports Limited maintains an [ICRA]A (Stable) credit rating. Borrowing costs are managed through low utilization of working capital limits, which averaged 12% during the 12-month period ended July 2025.

⚙️ Operational Drivers

Raw Materials

The company primarily uses textile fabrics and yarn as raw materials. Specific raw material cost percentages were not disclosed, but profitability is noted to be susceptible to volatility in raw material prices.

Capacity Expansion

Planned capex of INR 30 Cr in FY2026 is intended for expansion and maintenance, though specific capacity in MT or units is not disclosed.

Raw Material Costs

Raw material costs are a significant driver of the textile business; however, the exact percentage of revenue was not disclosed. Profitability remains susceptible to global price volatility in these inputs.

📈 Strategic Growth

Growth Strategy

Growth is targeted through the liquidation of fabric inventory in the US subsidiary (Orbit Inc) and the execution of confirmed orders in the made-ups segment, where 80% of orders were already fulfilled by YTD FY26. The company is also leveraging steady offtake from other global regions.

Products & Services

The company sells fabrics and made-ups (textile products) to global and domestic customers.

Brand Portfolio

Orbit Exports Limited, Orbit Inc (US Subsidiary).

Market Expansion

The company is focusing on liquidating inventory in the US market and maintaining steady offtake in other international regions to support FY2026 revenues.

Strategic Alliances

The company appointed Girik Wealth Advisors Private Limited as its Portfolio Manager, a related party transaction involving Director Mr. Varun Daga.

🌍 External Factors

Industry Trends

The textile industry is currently influenced by festive season demand and shifts in global consumer preferences. OEL is positioning itself by expanding its made-ups segment and strengthening its US distribution through Orbit Inc.

Competitive Moat

The company's moat is built on established distribution in the US and a comfortable debt coverage profile ([ICRA]A). Sustainability is supported by the ability to pass on cost increases to customers.

Macro Economic Sensitivity

The company is sensitive to global discretionary consumer spending; a downturn in key markets like the US would directly impact export volumes.

Consumer Behavior

Demand is driven by discretionary spending in key markets, which is subject to shifts in consumer confidence and festive season cycles.

Geopolitical Risks

Trade barriers and tariff burdens are managed by passing costs to customers, but global trade instability remains a risk for the US-based subsidiary.

⚖️ Regulatory & Governance

Industry Regulations

The company complies with SEBI Listing Regulations (17 to 27) and Section 133 of the Companies Act, 2013. It also operates under state government policies for power and interest subsidies.

Taxation Policy Impact

Current tax liabilities (net) were INR 3.84 Cr as of September 30, 2025, compared to INR 0.17 Cr as of March 31, 2025.

Legal Contingencies

There were no strictures or penalties imposed by SEBI or Stock Exchanges in the last three financial years, except for observations mentioned in the Secretarial Audit Report (values not specified).

⚠️ Risk Analysis

Key Uncertainties

Key risks include the high working capital intensity (35-39% of revenue) due to inventory holding and the potential for a significant decline in global textile demand.