SHIVAMILLS - Shiva Mills

📊 NSE: SHIVAMILLS 🏢 Textiles - Spinning - Synthetic / Blended 📅 Last Updated: 12/14/2025 13:13

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, Textile Business. Total income for H1 FY26 was INR 68.33 Cr, representing a 26.18% decline compared to INR 92.56 Cr in H1 FY25. This decline is attributed to diminished downstream demand in the textile sector.

Profitability Margins

Net Profit Margin for FY25 was -2.26% compared to -2.06% in FY24. Operating Profit Margin for FY25 was -1.79% compared to -2.02% in FY24. The company has reported net losses for the past three financial years ended FY25.

EBITDA Margin

Operating Profit Margin stood at -1.79% in FY25, showing a slight improvement from -2.02% in FY24 despite the net loss, primarily due to cost control measures.

Capital Expenditure

Property, Plant and Equipment stood at INR 58.07 Cr as of September 30, 2025, down from INR 59.17 Cr as of March 31, 2025. Capital Work-in-Progress was reduced to Nil from INR 0.137 Cr in the same period, indicating minimal new expansion activity.

Credit Rating & Borrowing

In July 2025, CARE Ratings downgraded the long-term bank facilities (INR 27.50 Cr) from CARE BBB+; Negative to CARE BBB; Stable and short-term facilities (INR 12.50 Cr) from CARE A2 to CARE A3+ due to persistent net losses.

⚙️ Operational Drivers

Raw Materials

Cotton and Yarn are the primary raw materials, with prices being highly volatile and significantly impacting the cost structure.

Capacity Expansion

Current installed capacity is not explicitly stated in MT, but the company operates a spinning unit and a windmill unit. Rating agencies indicate that reaching an operating income of over INR 300 Cr is a key sensitivity for a rating upgrade.

Raw Material Costs

Raw material costs are a major component of the textile business; volatility in cotton prices directly impacts margins as the company has limited ability to pass on costs during periods of diminished downstream demand.

Manufacturing Efficiency

The company employed 645 staff members as of March 31, 2025. Efficiency is driven by technological developments and maintaining harmonious industrial relations.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company aims to achieve growth by striving for continuous quality improvement, keeping pace with technological developments, prioritizing customer requirements, and focusing on value maximization. Strategic focus is on creating new business opportunities within the textile segment.

Products & Services

Cotton Yarn and related textile products.

Brand Portfolio

Shiva Mills.

🌍 External Factors

Industry Trends

The textile industry is currently facing a period of diminished downstream demand, which has led to net losses for several players including Shiva Mills over the past three years.

Competitive Landscape

The company operates in a highly competitive and fragmented textile market with significant pressure from both domestic and international players.

Competitive Moat

The company's moat is built on the promoters' vast experience in the textile industry, a long track record of operations, a comfortable capital structure with low debt (Debt-Equity of 0.11), and the availability of captive power from windmills.

Macro Economic Sensitivity

Highly sensitive to global textile demand and domestic cotton production cycles.

Consumer Behavior

Shifts in global fashion demand and consumer spending on apparel directly affect the demand for the company's yarn products.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to textile manufacturing standards and environmental pollution norms.

Environmental Compliance

The company utilizes renewable energy through its windmill units, supporting ESG compliance and reducing carbon footprint.

Legal Contingencies

The company has pending litigations disclosed in Note 32 of the Financial Statements. A specific case, C.O.S.No. 11 / 2022 involving The Karur Vysya Bank Ltd, is mentioned in legal announcements.