SUMEETINDS - Sumeet Industrie

📊 NSE: SUMEETINDS 🏢 Other Textile Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Standalone turnover for FY25 reached INR 1,003.37 Cr, representing a marginal growth of 1.88% from INR 984.86 Cr in FY24. For H1 FY26, total income stood at INR 520.83 Cr, a year-on-year growth of 2.35%.

Geographic Revenue Split

Domestic sales contribute to the majority of the revenue, though specific percentage splits by region are not disclosed in the documents.

Profitability Margins

The Net Profit Ratio improved to 0.1501% in FY25 from -0.0599% in FY24, a 336% increase following the IBC resolution. H1 FY26 PAT margin rose to 3.42% from significantly lower levels in the prior year.

EBITDA Margin

EBITDA margin for H1 FY26 was 5.98% (INR 31.17 Cr), marking a significant improvement of 597 basis points from 1.39% in the previous year, driven by a shift toward value-added products.

Capital Expenditure

The company has planned debt-funded capital expenditure for fiscal 2026, which is expected to increase the gearing ratio to 1.27 times. Post-expansion, the company expects to add INR 300 Cr per annum in additional revenue.

Credit Rating & Borrowing

The company has a 'Stable' outlook with an interest coverage ratio projected at ~2.5 times for fiscal 2026. Finance costs rose from INR 0.018 Cr to INR 3.58 Cr in FY25 due to fresh loans taken post-resolution.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include those required for POY and Chips production, with raw material costs accounting for 80-85% of the total cost of production.

Import Sources

The company is focusing on supply chain diversification and reaching out to untapped global markets, though specific import countries are not listed.

Key Suppliers

Reliance Industries is identified as a key supplier with whom the company has strengthened trust to manage raw material inventory levels effectively.

Capacity Expansion

Current installed capacities include a CP Plant (1,00,800 TPA), POY (52,500 TPA), and FDY (45,500 TPA). Planned expansion is expected to generate an additional INR 300 Cr in annual revenue.

Raw Material Costs

Raw material consumption was INR 957.80 Cr in FY25, a marginal decrease from INR 986.11 Cr in FY24 due to price fluctuations in the market.

Manufacturing Efficiency

Capacity utilization was 66.69% for the seven months through June 2025. The company is upgrading machinery to enhance efficiency and reduce waste.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth will be achieved through a successful resolution plan under the Eagle Group, upgrading machinery to produce value-added synthetic yarns, and implementing a 14 MW solar plant to reduce power costs by 30-40%. The company also plans to raise funds through equity or warrants to support these initiatives.

Products & Services

The company sells POY (Partially Oriented Yarn), FDY (Fully Drawn Yarn), Polyester Chips, Texturizing Yarn, and Recycled Chips.

Brand Portfolio

Sumeet Industries Limited.

New Products/Services

Focusing on value-added synthetic yarns and new product varieties to improve the bottom line and EBITDA margins.

Market Expansion

Plans include reaching out to untapped global markets and diversifying the supply chain to mitigate geopolitical risks.

Strategic Alliances

The company was acquired by the Eagle Group (Successful Resolution Applicant) via the NCLT process on July 16, 2024.

🌍 External Factors

Industry Trends

The Indian textile sector shows a positive demand outlook; however, the industry is shifting toward renewable energy and value-added products to combat input cost pressures.

Competitive Landscape

The industry is becoming increasingly competitive with potential overcapacity in POY and Chips, requiring a focus on operational efficiency.

Competitive Moat

The company's moat lies in the extensive experience of the new Eagle Group promoters and cost leadership potential through the 14 MW solar plant, which targets a 30-40% reduction in power costs.

Macro Economic Sensitivity

Highly sensitive to Indian macroeconomic fundamentals including interest rates, inflation, and fiscal policies, as domestic sales are the primary revenue driver.

Consumer Behavior

Improving macroeconomic fundamentals in India are leading to stabilizing currency and improving consumer demand for textiles.

Geopolitical Risks

The Russia-Ukraine war and global layoffs have impacted demand and margins in the MMF industry.

⚖️ Regulatory & Governance

Industry Regulations

The company must comply with MSMED Act 2006; however, it has not provided for interest payable under Section 16, leading to a qualified audit opinion.

Environmental Compliance

The company is committed to carbon footprint reduction and energy management as part of its CSR programs.

Legal Contingencies

There is a pending issue regarding the non-ascertainment of interest payable under the MSMED Act 2006, the impact of which on the P&L is currently not ascertainable.