Financial Performance Highlights

Q4 FY26 Performance (YoY):

  • Net Sales: ₹72.72 Cr (vs ₹68.35 Cr in Q4 FY25)
  • Total Income: ₹73.29 Cr, up 6.59% (vs ₹68.76 Cr)
  • EBIDTA: ₹6.00 Cr, up 7.10% (vs ₹5.60 Cr)
  • PAT: ₹1.62 Cr (vs ₹1.63 Cr, down 0.41%)
  • EPS: ₹1.05 (vs ₹1.06)

Full Year FY26 Performance (YoY):

  • Net Sales: ₹316.44 Cr (vs ₹296.15 Cr in FY25)
  • Total Income: ₹318.31 Cr, up 7.13% (vs ₹297.12 Cr)
  • EBIDTA: ₹29.39 Cr, up 3.15% (vs ₹28.49 Cr)
  • PAT: ₹10.05 Cr, up 18.92% (vs ₹8.45 Cr)
  • EPS: ₹6.48 (vs ₹5.45)

Balance Sheet Position (FY26):

  • Total Assets: ₹305.28 Cr
  • Fixed Assets: ₹64.80 Cr
  • Inventory: ₹102.41 Cr
  • Trade Receivables: ₹115.36 Cr
  • Cash & Bank Balance: ₹6.82 Cr
  • Net Worth: ₹92.85 Cr
  • Current Borrowings: ₹92.87 Cr
  • Trade Payables: ₹63.50 Cr

Cash Flow (FY26):

  • Cash from Operations: ₹13.81 Cr
  • Cash from Investments: -₹10.69 Cr
  • Cash from Financing: ₹3.46 Cr
  • Net Cash Flow: ₹6.58 Cr

Strategic and Operational Updates

Fundraising Initiative:

  • Initiated fundraising of up to ₹23 Cr through issuance of warrants to support future expansion plans, strengthen working capital requirements, and enhance operational capabilities.

Retail Expansion - NUEMO Launch:

  • Launched 'NUEMO', a multi-brand retail platform offering men's, women's, and kids' apparel.
  • Currently operates 7 stores across Punjab with specific store sizes: Bhawanigarh Patiala (Unit 1: 1500 Sqft, Unit 2: 1000 Sqft), Kharar (1800 Sqft), Barnala (Unit 1: 1250 Sqft, Unit 2: 1250 Sqft), Greencity Bathinda (Unit 1: 1000 Sqft, Unit 2: 2200 Sqft).
  • Targeting additional topline opportunity of approximately ₹200-250 Cr within the next four years, subject to market conditions and execution performance.

Manufacturing Capabilities:

  • Specializes in flat-knitted sweaters, jackets, circular-knitted t-shirts, and shoe uppers.
  • Equipment includes 500+ machines for jackets, 352 fully fashioned computerized machines from SHIMA SEIKI, STOLL, and KAUO HENG for sweaters, and 100+ specialized machines across four lines for circular knits.
  • New product categories introduced: knitted beanies, gloves, soft-knitted toys, and athleisure products.

Key Partnerships:

  • 22-year partnership with Levi's as their only sustainability-driven solution in India, unlocking ₹500 Cr growth opportunity across 110+ countries.
  • Manufacturing partner for Adidas shoe uppers with patented designs supporting Make in India initiative.
  • Provides infant clothing solutions for Tchibo Germany, scaled to €750,000 within two years.
  • Transferred winter wear business from Bestseller previously centralized in Bangladesh to Active in FY22.

Expansion Plans:

  • Agreement to purchase 600 advanced machines to establish India's first "Knit to Shape" Smart Knitting Factory integrating 3D seamless knitting, automation, and zero-waste production.
  • Targeting ₹500 Cr revenue in 3 years and ₹1,000 Cr in 5 years.
  • Expanded marketing network to 200+ MBOs (Multi-Brand Outlets), aiming to grow to 300.

Operational Enhancements:

  • Increased production capacity across all verticals.
  • Backward integration with in-house capabilities in printing, garment dyeing, dip dyeing, and specialized washes.
  • Developed in-house expertise in intricate hand and manual embroideries.
  • Installed rooftop solar panels with annual capacity of 500 KW, meeting 50% of energy demand.

Leadership Appointments:

  • Strengthened leadership team with appointments including Production Director, VP for Circular Knits & Soft Wovens, and senior heads for exports, sampling, and production.

Management Commentary

Mr. Rajesh Mehra, Managing Director, stated: "FY26 was a year of steady progress despite continued challenges across the textile and apparel industry. We remained focused on improving operational efficiencies, strengthening customer relationships and expanding our overall business platform for long term growth." He expressed excitement about the NUEMO launch as "an important strategic step towards building a scalable retail presence across India."

Market Context

  • India is world's second-largest textile producer and fifth-largest exporter
  • Textile industry contributes 2.3% to GDP, expected to double to 5% by decade's end
  • Indian textiles and apparel market projected to grow at 10% CAGR to reach US$350 Billion by 2030
  • Exports expected to reach US$100 Billion