SGL - STL Global

📊 NSE: SGL 🏢 Textiles - Processing 📅 Last Updated: 12/14/2025 13:44

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment (Textiles) which achieved a revenue growth of 27% YoY, reaching INR 11,019.55 lakhs in FY 2024-25 compared to INR 8,678.61 lakhs in FY 2023-24.

Profitability Margins

Net losses narrowed significantly by 74.6% from INR 258.39 lakhs in FY 2024 to INR 65.67 lakhs in FY 2025. For H1 FY 2025-26, the company pivoted to a profit before tax of INR 20.89 lakhs compared to a loss of INR 56.77 lakhs in the previous full year.

EBITDA Margin

Operating profit before working capital changes stood at INR 98.75 lakhs for H1 FY 2025-26. Core profitability improved as the company transitioned from a negative EPS of INR (0.96) in FY 2024 to INR (0.24) in FY 2025, and further to a positive INR 0.07 in H1 FY 2026.

Capital Expenditure

The company reported a purchase of property, plant, and equipment (CapEx) of INR 28.89 lakhs during H1 FY 2025-26, compared to an expenditure of INR 38.69 lakhs in FY 2024-25.

Credit Rating & Borrowing

Total non-current borrowings stood at INR 1,487.30 lakhs as of September 30, 2025. Finance costs for H1 FY 2025-26 were INR 37.24 lakhs, representing a significant reduction from the INR 102.44 lakhs incurred in FY 2024-25, reflecting a 23.3% reduction in total debt during the prior fiscal year.

⚙️ Operational Drivers

Raw Materials

Cotton is identified as the primary raw material, with price volatility noted as a significant concern for input costs.

Capacity Expansion

Current property, plant, and equipment is valued at INR 1,643.49 lakhs as of September 30, 2025. Specific MTPA or unit capacity expansion plans are not disclosed.

Raw Material Costs

Raw material costs are impacted by persistent volatility in cotton prices; however, the company achieved a 27% revenue growth through improved product mix and higher sales realization despite these cost pressures.

Manufacturing Efficiency

Revenue growth of 27% was supported by better capacity utilization and an improved product mix, though specific utilization percentages were not disclosed.

📈 Strategic Growth

Expected Growth Rate

27%

Growth Strategy

The company aims to achieve growth by strengthening its customer base, investing in sustainable technologies, and gradually reducing debt (which was reduced by INR 450 lakhs in FY 2025). Management is focusing on transforming into a future-ready textile player through technology adoption and operational excellence.

Products & Services

Textile products and Job-work services (Job-work accounted for INR 180.12 lakhs in related party transactions).

Brand Portfolio

STL Global.

Market Expansion

The company is targeting growth through government schemes such as PLI, MITRA Parks, and RoDTEP to facilitate investment inflows and competitiveness.

🌍 External Factors

Industry Trends

The textile sector is currently facing short-term headwinds but maintains a positive long-term outlook. The industry is evolving through sustainable technology adoption and government-led investment parks (MITRA).

Competitive Landscape

The company operates in a competitive textile market where competitiveness is driven by government schemes like RoDTEP and cost efficiency.

Competitive Moat

The company's moat is built on operational excellence and a commitment to transparency and good corporate governance, though it lacks a clear brand or patent-based moat in the provided documents.

Macro Economic Sensitivity

The company is highly sensitive to cotton price volatility and government textile schemes (PLI, MITRA Parks).

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act 2013, SEBI (LODR) Regulations 2015, and textile-specific government schemes like PLI and RoDTEP.

Taxation Policy Impact

The company maintains a Deferred Tax Asset of INR 56.92 lakhs as of September 30, 2025.

Legal Contingencies

The Secretarial Audit report for FY 2024-25 confirmed compliance with statutory provisions; no specific pending litigation values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Primary risks include persistent volatility in cotton prices and input costs, which could impact the sustainability of the recent pivot to profitability.