SHEKHAWATI - Shekhawati Inds

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

💰 Financial Performance

Revenue Growth by Segment

Total income from operations for H1 FY26 was INR 17.87 Cr, representing a 197.68% increase compared to INR 6.00 Cr in H1 FY25. However, FY25 annual revenue of INR 34.39 Cr showed a 43.28% decline from INR 60.64 Cr in FY24.

Geographic Revenue Split

The company reported 100% domestic revenue as there was no export activity during the year under review, although it is exploring future international opportunities.

Profitability Margins

Net Profit margin for H1 FY26 was 14.31% (INR 2.56 Cr profit on INR 17.87 Cr revenue). This is consistent with the FY25 net margin of 14.30%, but an improvement over the FY24 net margin of 10.36%.

EBITDA Margin

Core profitability before tax and exceptional items for H1 FY26 was INR 2.56 Cr, a 45.41% decrease from INR 4.69 Cr in H1 FY25, primarily due to higher operational costs relative to the revenue surge.

Capital Expenditure

The company is investing in a new project in Khandala expected to open a new revenue stream in the near future; specific INR investment values were not disclosed.

⚙️ Operational Drivers

Raw Materials

Raw materials for knitted fabrics and poly-yarn production (typically polyester, PTA, and MEG); specific names and cost percentages were not disclosed.

Capacity Expansion

Current capacity is not disclosed; however, the company is expanding into a new revenue stream via the Khandala project.

Raw Material Costs

Raw material costs are subject to price fluctuations and cyclical demand patterns; the company manages this through proactive vendor development and inventory management.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth will be driven by the operationalization of the Khandala project to diversify revenue and the exploration of international markets to resume export activities. The company also focuses on developing leadership skills and building talent to improve organizational capability.

Products & Services

Knitted fabrics and poly-yarn products.

Brand Portfolio

Shekhawati Industries (formerly Shekhawati Poly-Yarn).

New Products/Services

The Khandala project is expected to open a new revenue stream in the near future.

Market Expansion

Exploring potential future opportunities in international markets to resume exports.

🌍 External Factors

Industry Trends

The textile and poly-yarn industry is characterized by cyclical demand patterns and price volatility. The company is positioning itself for the future by diversifying into new revenue streams like the Khandala project.

Competitive Landscape

Operates in a highly competitive and challenging environment with significant price volatility.

Competitive Moat

The company's moat is built on the specialized expertise of its directors in knitted fabrics, production, and marketing, alongside integrated operations in finance and marketing.

Macro Economic Sensitivity

Highly sensitive to interest rate changes and credit availability, particularly for the real estate-linked Khandala project.

Geopolitical Risks

Geopolitical and tariff-related risks are cited as potential indirect impacts on the company's customer base and supply chains.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to changes in government regulations and tax regimes; the company maintains compliance with SEBI (LODR) Regulations, 2015.

Taxation Policy Impact

The company followed prescribed accounting treatments under Section 133 of the Act; H1 FY26 results show zero tax provision for the interim period.

Legal Contingencies

A court hearing is fixed for November 6, 2025, at 2:00 p.m. regarding a petition involving the company; specific case values were not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Key risks include raw material price fluctuations (high impact on margins), currency volatility, and interest rate changes affecting credit in the real estate sector.