💰 Financial Performance

Revenue Growth by Segment

The single 'Textile' segment reported revenue of INR 375.06 Cr in FY25, representing a growth of 11.56% YoY from INR 336.19 Cr in FY24.

Geographic Revenue Split

Domestic sales contributed 80.35% (INR 181.6 Cr) and Exports contributed 19.65% (INR 44.4 Cr) based on historical revenue breakup trends.

Profitability Margins

Net Profit for FY25 was INR 4.49 Cr, up 20.49% from INR 3.72 Cr in FY24. Net margin remains thin at approximately 1.2% of revenue.

EBITDA Margin

Historical EBITDA margin was 12.95% (FY21). Operating profit before working capital changes for FY25 was INR 30.38 Cr, up 31.3% YoY from INR 23.13 Cr.

Capital Expenditure

Capital expenditure for FY25 was INR 9.28 Cr, a significant 72.6% decrease from the INR 33.94 Cr spent in FY24 during a major manufacturing expansion phase.

Credit Rating & Borrowing

As of November 2025, the credit rating is IND BBB-/Negative/IND A3, with the outlook revised to Negative from Stable. Finance costs for FY25 were INR 9.60 Cr.

⚙️ Operational Drivers

Raw Materials

Yarn, fabrics, and specialized fibers used for embroidery and lace production.

Capacity Expansion

The company completed a major expansion of manufacturing facilities in FY24; FY25 was the first full year of operations utilizing this new capacity.

Raw Material Costs

Cost of materials consumed in FY25 was INR 215.80 Cr, representing 57.54% of total revenue, compared to 63.66% in FY24.

Manufacturing Efficiency

Revenue from operations increased by 11.56% following the first full year of operations of the expanded facilities.

📈 Strategic Growth

Expected Growth Rate

11.56%

Growth Strategy

Growth is driven by the full-year operationalization of expanded manufacturing facilities. The company is leveraging its 'Hakoba' brand and integrated textile manufacturing to capture domestic demand, which accounts for over 80% of sales.

Products & Services

Yarn, Embroidered fabrics, and Laces.

Brand Portfolio

Hakoba.

Market Expansion

Focus on domestic sales which grew to INR 181.6 Cr in historical periods.

Strategic Alliances

Maintains an associate company, Shree Ganesh Integrated Textile Park Private Limited.

🌍 External Factors

Industry Trends

The textile industry is seeing a shift toward integrated manufacturing; the company's recent expansion positions it to capture higher volumes.

Competitive Landscape

Operates in a fragmented textile and embroidery market with competition from both organized and unorganized players.

Competitive Moat

Moat is derived from the established 'Hakoba' brand and the scale of its recently expanded manufacturing facilities.

Macro Economic Sensitivity

High sensitivity to domestic textile consumption and raw material price cycles.

Consumer Behavior

Demand is driven by fashion trends and domestic consumption patterns in the textile sector.

Geopolitical Risks

Exposure to export markets (19.65% of revenue) and potential trade barriers.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Indian Accounting Standards (Ind AS), including the adoption of Ind AS 117 and amendments to Ind AS 116.

Taxation Policy Impact

Current tax for FY25 was nil; the company recognized a deferred tax asset of INR 1.06 Cr.

Legal Contingencies

The company reported income tax refund receivables of INR 1.36 Cr and provisions for credit losses of INR 76.56 lakhs.

⚠️ Risk Analysis

Key Uncertainties

The 'Negative' credit outlook and the H1 FY26 consolidated loss of INR 2.73 Cr present significant liquidity and profitability risks.

Geographic Concentration Risk

80.35% of revenue is concentrated in the domestic Indian market.

Third Party Dependencies

Dependency on associate concern for advances totaling INR 5.35 Cr.

Credit & Counterparty Risk

Provision for expected credit losses stands at INR 76.56 lakhs as of March 2025.