SAHAJ - Sahaj Fashions

📊 NSE: SAHAJ 🏢 Textiles - Products 📅 Last Updated: 12/14/2025 12:38

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations for FY 2023-24 was INR 125.18 Cr. Segment-specific growth percentages for fabric and yarn are not disclosed, though the company notes a focus on value-added yarn to offset commodity headwinds.

Profitability Margins

Net profit ratio declined from 3% in FY 2022-23 to 1% in FY 2023-24. Return on Equity (ROE) dropped significantly from 15% to 3% YoY, while Return on Capital Employed (ROCE) fell from 37% to 16% due to margin pressure in the yarn segment.

EBITDA Margin

Not explicitly disclosed; however, the company reported a 'dent in yarn margin' and a net profit ratio of 1% for FY 2023-24, down from 3% YoY.

Capital Expenditure

Not disclosed in absolute INR Cr; however, the company is executing a Business Growth & Diversification Strategy involving infrastructure strengthening for diverse product manufacturing.

Credit Rating & Borrowing

The company has sanctioned working capital limits exceeding INR 5 Cr from banks. The Debt-Equity ratio improved from 2.02 in FY 2023-24 to 1.07 in FY 2023-24, a reduction of approximately 47%.

⚙️ Operational Drivers

Raw Materials

Cotton is the primary raw material, representing a significant but unspecified percentage of total costs. Fluctuations in cotton prices are cited as a major challenge to the cost structure.

Capacity Expansion

The company reported capacity under-utilization in FY 2023-24 due to diminishing demand and dumping of imported fabrics. Current MT/unit capacity is not disclosed.

Raw Material Costs

Raw material costs are highly sensitive to cotton price fluctuations. The company employs strategic sourcing and long-term contracts to mitigate these YoY cost changes.

Manufacturing Efficiency

Capacity utilization was suboptimal in FY 2023-24 due to industry-wide headwinds including imported fabric dumping and fluctuating yarn margins.

📈 Strategic Growth

Growth Strategy

Growth will be achieved through the execution of the Business Growth & Diversification Strategy, infrastructure strengthening for diverse value-added products, and market expansion following the NSE SME-EMERGE listing on September 7, 2023.

Products & Services

Denim fabric, high-quality cotton fabric, and value-added yarn.

Brand Portfolio

Sahaj Fashions.

New Products/Services

Innovative value-added yarn and diverse fabric products developed through customer collaboration.

Market Expansion

Strategic focus on expansion into new markets and enhancing shareholder value through technology investments following the 2023 SME listing.

Strategic Alliances

Collaborating with customers to manufacture innovative products and maintain optimum capacity utilization.

🌍 External Factors

Industry Trends

The Indian denim industry outlook remains positive with a shift toward sustainable practices and technological upgrades; however, FY 2023-24 was characterized by capacity under-utilization industry-wide.

Competitive Landscape

Highly competitive denim fabric market with numerous players and significant pressure from low-cost imports from China and Bangladesh.

Competitive Moat

Moat is built on infrastructure capable of producing diverse value-added products and customer-led innovation, though sustainability is challenged by low-cost international dumping.

Macro Economic Sensitivity

Highly sensitive to global cotton price cycles and international trade policies regarding fabric imports from China and Bangladesh.

Consumer Behavior

Increasing demand for denim in both domestic and international markets is driving long-term optimism.

Geopolitical Risks

Trade barriers and dumping of imported fabrics from China and Bangladesh are major geopolitical/trade risks affecting domestic pricing.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to environmental norms and industry-specific regulations; the company ensures adherence through internal controls.

Environmental Compliance

The company emphasizes compliance with environmental and industry regulations through robust governance and regular audits.

Taxation Policy Impact

The company reported no pending disputes regarding income tax, service tax, sales tax, or customs duty as of March 31, 2024.

Legal Contingencies

The company reported INR 0 in pending litigations that would impact its financial position as of the audit date.

⚠️ Risk Analysis

Key Uncertainties

Key risks include cotton price volatility, international dumping (China/Bangladesh), and internal IT risks following a major financial data loss incident in May 2025.

Technology Obsolescence Risk

Significant internal control risk identified: the Tally audit trail (edit log) facility was not operated throughout FY 2023-24, and a software technical problem in May 2025 resulted in the loss of financial data.