💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: Trading and Manufacturing in Textiles. Total income for H1 FY26 (ended September 30, 2025) reached INR 349.10 lakhs, representing a massive growth of approximately 6,376% compared to INR 5.39 lakhs in H1 FY25, primarily due to a low base and increased demand for suiting and shirting fabrics.

Geographic Revenue Split

Revenue is driven by both domestic and export markets, though specific percentage splits per region are not disclosed in the available documents.

Profitability Margins

Net Profit Margin for H1 FY26 stood at 22.65% (INR 79.09 lakhs profit on INR 349.10 lakhs income). This is a significant turnaround from the H1 FY25 net loss of INR 4.11 lakhs. Operating margins remained stable due to effective pricing strategies despite inflationary pressures.

EBITDA Margin

Operating profit before working capital changes for H1 FY26 was INR 84.85 lakhs, yielding an operating margin of approximately 24.3%. This reflects efficient procurement and strict operational controls that helped contain rising input costs.

Capital Expenditure

Investments were made toward modernizing manufacturing facilities, enhancing automation, and strengthening R&D. While specific INR Cr values for future plans are not detailed, Property, Plant and Equipment stood at INR 0.70 lakhs as of September 30, 2025, down from INR 104.00 lakhs in March 2025, likely due to asset realignments or sales.

Credit Rating & Borrowing

Total borrowings as of September 30, 2025, were INR 1,092.54 lakhs, comprising INR 733.39 lakhs in non-current borrowings and INR 359.15 lakhs in current borrowings. Finance costs for H1 FY26 were INR 3.59 lakhs, representing approximately 1% of total income.

⚙️ Operational Drivers

Raw Materials

Key raw materials include suiting and shirting fabrics and unspecified textile inputs, which are subject to price fluctuations that impact the overall cost structure.

Key Suppliers

The company sources materials from various vendors and has received loans from promoters including Mithleshkumar M Agrawal, Vax Enterprises Private Limited, and Khushant Gupta to support operations.

Capacity Expansion

The company is focusing on modernization and automation of existing facilities to improve manufacturing efficiency, though specific MT or unit capacity figures are not disclosed.

Raw Material Costs

Purchase of stock-in-trade for H1 FY26 was INR 991.36 lakhs. The company faced rising input costs due to higher raw material prices, but managed these through efficient procurement strategies.

Manufacturing Efficiency

Efficiency is being targeted through automation and R&D investments to maintain cost-competitiveness in the intense textile market.

Logistics & Distribution

Logistics expenses have increased, impacting the cost structure, though they are partially offset by volume growth in e-commerce and direct-to-consumer channels.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth will be achieved by leveraging the 'China Plus One' global sourcing strategy, participating in government initiatives like PM MITRA Parks and the PLI scheme, and expanding through e-commerce and direct-to-consumer platforms.

Products & Services

Trading and manufacturing of suiting and shirting fabrics.

Brand Portfolio

Vaxtex Cotfab.

New Products/Services

The company is focusing on emerging channels like e-commerce and direct-to-consumer platforms to drive momentum, though specific new product revenue contributions are not quantified.

Market Expansion

Targeting growth in both domestic and export markets by positioning as a reliable alternative to Chinese suppliers.

🌍 External Factors

Industry Trends

The Indian textile industry is moving toward sustainability, digital innovation, and modernization supported by the PLI scheme and PM MITRA Parks. The 'China Plus One' strategy is a major tailwind for Indian manufacturers.

Competitive Landscape

Intense competition from other small and mid-sized textile enterprises and global manufacturers.

Competitive Moat

The company's moat is built on its integrated trading and manufacturing model and its ability to adapt to digital sales channels. Sustainability depends on maintaining quality while remaining cost-competitive.

Macro Economic Sensitivity

The company is sensitive to global economic uncertainties and domestic inflation, which impact consumer demand for textiles and raw material pricing.

Consumer Behavior

Growing demand for suiting and shirting fabrics in domestic markets and a shift toward e-commerce and direct-to-consumer purchasing.

Geopolitical Risks

Geopolitical tensions are cited as a challenge that could impact raw material prices and export opportunities.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with the SEBI (LODR) Regulations 2015 and the Companies Act 2013. The company is also subject to textile sector-specific regulations and government schemes like PLI.

Taxation Policy Impact

Total tax expenses for H1 FY26 were INR 2.35 lakhs, resulting in an effective tax rate of approximately 2.9% on a PBT of INR 81.44 lakhs, aided by deferred tax adjustments.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility and geopolitical tensions are the primary uncertainties, with the potential to impact margins by over 10% if not managed effectively.

Third Party Dependencies

Dependency on raw material suppliers and logistics partners; also relies on promoter loans for liquidity.

Technology Obsolescence Risk

The company is mitigating technology risks by investing in automation and modernizing manufacturing facilities.

Credit & Counterparty Risk

Trade receivables stand at INR 1,132.12 lakhs, which is significantly higher than the half-year revenue, indicating potential credit risk and a long collection cycle.