💰 Financial Performance

Revenue Growth by Segment

Revenue from operations for 9M FY25 grew 2.75% YoY to INR 738.00 Cr. Q3 FY25 revenue grew 9.57% YoY to INR 249.51 Cr. Segment-specific growth percentages were not disclosed in available documents.

Profitability Margins

Gross Margin improved significantly from 36.28% to 43.65% YoY in 9M FY25. Net Margin improved from 0.64% to 3.95% in the same period, driven by better cost management and higher realizations.

EBITDA Margin

EBITDA Margin for 9M FY25 stood at 10.63%, nearly doubling from 5.75% in 9M FY24. Q3 FY25 EBITDA margin was 10.26%, up from 7.80% YoY, reflecting a 31.5% improvement in core operational efficiency.

Credit Rating & Borrowing

Non-current borrowings stood at INR 93.00 Cr as of September 30, 2025. Finance costs for Q3 FY25 were INR 9.01 Cr, representing approximately 3.6% of revenue.

⚙️ Operational Drivers

Raw Material Costs

Cost of Goods Sold (COGS) for 9M FY25 was INR 415.85 Cr, representing 56.3% of revenue, a decrease from 63.7% in 9M FY24, which directly contributed to the 737 bps expansion in gross margins.

Manufacturing Efficiency

Manufacturing efficiency is reflected in the EBITDA growth of 90.1% YoY (to INR 78.47 Cr) on a modest revenue growth of 2.75%, indicating high operational leverage.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company is achieving growth through aggressive margin expansion and cost optimization. EBITDA grew 90.1% YoY in 9M FY25 while employee costs grew only 14.4% (to INR 77.80 Cr), demonstrating a strategy focused on operational efficiency and higher-value product mix.

Products & Services

Yarn and textile products.

Brand Portfolio

Precot.

Strategic Alliances

Suprem Associates is a 99.88% owned partnership firm subsidiary with total assets of INR 24.22 Cr as of September 2025.

🌍 External Factors

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to SEBI Listing Obligations and Disclosure Requirements (Regulation 33), as confirmed by the independent auditor's review reports.

Taxation Policy Impact

The effective tax rate for 9M FY25 was approximately 26.5%, with tax expenses of INR 10.53 Cr on a Profit Before Tax of INR 39.67 Cr.

⚠️ Risk Analysis

Key Uncertainties

Key risks include the financial impact of discontinued operations, which resulted in a loss of INR 3.81 Cr in Q2 FY26, and the high sensitivity of margins to raw material cost fluctuations (COGS at 56% of revenue).