💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, Technical Textiles, which reported total revenue of INR 82.67 Cr in FY 2024-25, representing a growth of 8.24% compared to INR 76.38 Cr in FY 2023-24.

Geographic Revenue Split

Export sales contributed 73.9% (INR 61.13 Cr) of total revenue in FY 2024-25, up from 56.3% (INR 42.99 Cr) in the previous year, reflecting a 42.3% YoY growth in international markets. Domestic sales accounted for the remaining 26.1% (INR 21.54 Cr).

Profitability Margins

Net Profit Margin improved to 17.75% in FY 2024-25 from 16.07% in FY 2023-24, a relative increase of 10.43%. Profit After Tax (PAT) grew 19.5% YoY to INR 14.67 Cr from INR 12.28 Cr.

EBITDA Margin

Not explicitly disclosed as a standalone percentage, but Profit Before Tax (PBT) margin stood at 24.08% (INR 19.90 Cr) in FY 2024-25 compared to 22.15% (INR 16.92 Cr) in FY 2023-24, indicating improved core operational profitability.

Capital Expenditure

The company utilized INR 14.31 Cr from IPO proceeds for capital projects as of September 30, 2025, including INR 3.71 Cr for factory shed construction, INR 6.31 Cr for machinery procurement, and INR 4.29 Cr for a solar plant to enhance energy efficiency.

Credit Rating & Borrowing

Credit rating not disclosed. Total debt as of September 30, 2025, stood at INR 11.67 Cr (INR 0.77 Cr long-term and INR 10.90 Cr short-term). Finance costs for FY 2024-25 were INR 2.85 Cr, representing 3.4% of total revenue.

⚙️ Operational Drivers

Raw Materials

Technical textile raw materials (polymers/fibers) accounted for INR 32.37 Cr in FY 2024-25, representing 39.1% of total revenue.

Import Sources

Not specifically disclosed in available documents, though the company notes strategic sourcing and supply chain diversification as risk mitigation strategies.

Capacity Expansion

Planned expansion includes the commissioning of a solar plant (INR 4.89 Cr allocated) and ongoing machinery upgrades (INR 6.31 Cr utilized) to support the growing demand in the technical textiles sector.

Raw Material Costs

Cost of materials consumed was INR 32.37 Cr in FY 2024-25, up 52.3% from INR 21.26 Cr in FY 2023-24, reflecting increased production volume and operational scaling.

Manufacturing Efficiency

Manufacturing efficiency is being addressed through the adoption of new machinery and a solar power plant to lower the per-unit cost of production.

Logistics & Distribution

Not specifically disclosed, but the 42.3% growth in exports suggests increased logistics activity and reliance on international shipping channels.

📈 Strategic Growth

Expected Growth Rate

6%

Growth Strategy

The company aims to achieve growth by leveraging the 'China-plus-one' sourcing strategy, expanding into new international markets (exports grew 42.3% recently), and diversifying its product range in high-value performance fabrics. Operational efficiency will be driven by the new solar plant and upgraded machinery funded by the INR 45.14 Cr IPO.

Products & Services

Technical Textiles, specifically performance-driven fabrics used across various industrial and consumer sectors.

Brand Portfolio

Shri Techtex.

New Products/Services

The company is focusing on 'Innovation and Product Development' and a 'diversified product range' to improve net profit margins through higher-value offerings, though specific revenue contribution % for new launches is not disclosed.

Market Expansion

Targeting expansion into new global markets to build on the current INR 61.13 Cr export base, supported by government initiatives like the National Technical Textiles Mission.

Market Share & Ranking

India holds a 9.8% share of the global technical textiles market; the company's specific ranking is not disclosed, but it operates in a market projected to reach INR 2,39,475.95 Cr by 2030.

🌍 External Factors

Industry Trends

The industry is shifting toward performance-driven fabrics with a projected 6% CAGR through 2030. India is positioning itself as a global alternative to China, supported by the PLI scheme and National Technical Textiles Mission.

Competitive Landscape

The company competes in the global technical textiles market, positioning itself against international suppliers under the 'China-plus-one' strategy.

Competitive Moat

The moat is built on high export integration (73.9% of revenue) and a strong capital structure (Debt-Equity ratio of 0.11). Sustainability is being reinforced through a INR 4.29 Cr investment in captive solar power to create a cost advantage.

Macro Economic Sensitivity

Highly sensitive to global trade cycles due to 73.9% export exposure; also sensitive to domestic industrial growth as the Indian technical textiles market is expected to grow at a 6% CAGR.

Consumer Behavior

Increasing demand for performance-driven and sustainable fabrics across industrial sectors is driving the shift toward technical textiles.

Geopolitical Risks

Geopolitical uncertainties are cited as a primary risk that could disrupt supply chains or impact international demand for technical textiles.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Factories Act, 1948, and technical textile standards. The company is also subject to export-import regulations affecting its INR 61.13 Cr export business.

Environmental Compliance

The company has committed to environmental stewardship by investing INR 4.29 Cr in a solar energy strategy to reduce its carbon footprint.

Taxation Policy Impact

The company incurred total tax expenses of INR 5.23 Cr in FY 2024-25, representing an effective tax rate of approximately 26.3% on PBT.

Legal Contingencies

The Secretarial Audit report for FY 2024-25 did not report any major pending litigation or material non-compliance issues.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility and geopolitical shifts are the primary uncertainties, with the potential to impact the 39.1% material cost-to-revenue ratio.

Geographic Concentration Risk

High geographic concentration in export markets, which account for 73.9% (INR 61.13 Cr) of total sales.

Third Party Dependencies

The company mentions 'strategic sourcing' to mitigate vendor dependency, though specific supplier concentration is not disclosed.

Technology Obsolescence Risk

The company is mitigating technology risk by investing INR 6.31 Cr in new machineries to maintain manufacturing competitiveness.

Credit & Counterparty Risk

Trade receivables turnover ratio was 3.725 in FY 2024-25, a 24.74% decrease from 4.95 in the previous year, indicating a slight slowdown in collection efficiency.