Financial Performance Highlights

Q2FY27 Performance (Standalone)

  • Total Income: ₹358.4 crore (3.1% YoY growth, 11.2% QoQ growth)
  • Revenue from Operations: ₹354.5 crore
  • Other Income: ₹3.9 crore
  • EBITDA: ₹36.5 crore (8.8% YoY growth, 23.9% QoQ growth)
  • EBITDA Margin: 10.2%
  • Profit Before Tax (PBT): ₹11.3 crore (19.4% YoY growth, 92.2% QoQ growth)
  • Profit After Tax (PAT): ₹8.1 crore (16.1% YoY growth, 84.0% QoQ growth)
  • PAT Margin: 2.3%
  • EPS: ₹2.37
  • Production Value: ₹378.5 crore

H1FY27 Performance (Standalone)

  • Total Income: ₹680.8 crore (3.6% YoY growth)
  • Revenue from Operations: ₹670.3 crore
  • Other Income: ₹10.5 crore
  • EBITDA: ₹66.0 crore (18.9% YoY growth)
  • EBITDA Margin: 9.7%
  • Profit Before Tax (PBT): ₹17.2 crore (125.9% YoY growth)
  • Profit After Tax (PAT): ₹12.5 crore (124.6% YoY growth)
  • PAT Margin: 1.8%
  • EPS: ₹3.66
  • Production Value: ₹709.9 crore

Divisional Performance

Yarn Division

  • Q2FY27 Revenue: ₹103 crore (-8% YoY, +7% QoQ)
  • H1FY27 Revenue: ₹199 crore (-10% YoY)
  • Q2FY27 Sales Volume: 37 lakh kg (-24% YoY, +3% QoQ)
  • H1FY27 Sales Volume: 74 lakh kg (-26% YoY)
  • Q2FY27 Capacity Utilization: 84%
  • H1FY27 Capacity Utilization: 77%
  • Performance impacted by higher raw material and export freight costs, and supply chain disruptions
  • Domestic sales improved sequentially with increased captive consumption for fabric manufacturing

Fabric Division

  • Q2FY27 Revenue: ₹157 crore (+5% YoY, +7% QoQ)
  • H1FY27 Revenue: ₹303 crore (+14% YoY)
  • Q2FY27 Sales Volume: 58 lakh meters (-2% YoY, -1% QoQ)
  • H1FY27 Sales Volume: 118 lakh meters (+8% YoY)
  • Q2FY27 Capacity Utilization: 82%
  • H1FY27 Capacity Utilization: 81%
  • Performance broadly in line with expectations despite subdued export markets
  • Job-weaving operations initiated to augment production capacity

Garment Division

  • Q2FY27 Revenue: ₹90 crore (+13% YoY, +30% QoQ)
  • H1FY27 Revenue: ₹160 crore (+3% YoY)
  • Q2FY27 Sales Volume: 10 lakh pieces (-5% YoY, +34% QoQ)
  • H1FY27 Sales Volume: 18 lakh pieces (-10% YoY)
  • Q2FY27 Capacity Utilization: 78%
  • H1FY27 Capacity Utilization: 74%
  • Exports contributed significantly to sales
  • Dispatches impacted by vessel delays and logistical challenges
  • Jacket orders remained strong

Expense Breakdown (Q2FY27)

  • Raw Materials Cost: ₹134.8 crore
  • Employee Expense: ₹91.3 crore
  • Power & Fuel: ₹39.1 crore (increased due to higher coal prices and grid power tariffs)
  • Other Expenses: ₹56.6 crore
  • Depreciation: ₹13.8 crore
  • Finance Cost: ₹11.4 crore (increased due to higher working capital borrowings and additional term loan disbursements)
  • Tax: ₹3.2 crore

Balance Sheet Position (as of September 2026)

  • Total Assets: ₹1,343.5 crore
  • Non-current Assets: ₹665.2 crore
  • Property, Plant & Equipment: ₹552.6 crore
  • Capital Work in Progress: ₹42.0 crore
  • Investments: ₹21.4 crore
  • Current Assets: ₹678.3 crore
  • Inventories: ₹376.8 crore
  • Trade Receivables: ₹224.7 crore
  • Cash & Cash Equivalents: ₹0.1 crore
  • Equity: ₹590.2 crore
  • Equity Share Capital: ₹17.1 crore
  • Other Equity: ₹573.0 crore
  • Non-current Liabilities: ₹254.8 crore
  • Borrowings: ₹207.5 crore
  • Current Liabilities: ₹498.6 crore
  • Borrowings: ₹307.6 crore
  • Trade Payables: ₹91.4 crore

Cash Flow (H1FY27)

  • Operating profit before working capital changes: ₹58.7 crore
  • Changes in working capital: -₹24.8 crore
  • Cash generated from operations: ₹33.9 crore
  • Income Tax Refund: ₹9.2 crore
  • Net Cash from Operating Activities: ₹24.7 crore
  • Net Cash from Investing Activities: -₹41.0 crore
  • Net Cash from Financing Activities: ₹16.3 crore
  • Net Change in cash: -₹0.1 crore

Debt Position

  • Net Debt: ₹515.66 crore as of September 30, 2026 (increased by ₹43.28 crore from March 2026)
  • Debt-Equity Ratio: 0.8x as of September 30, 2026

Management Commentary

Mr. Ravindra Kumar Toshniwal, Vice-Chaiman, stated that the company is confident in achieving FY27 guidance supported by:

  • Encouraging order visibility
  • Seasonal demand
  • Improving capacity utilization
  • Seasonally stronger second half
  • UK and EU Free Trade Agreements expected to provide favorable tailwinds for export orders

Strategic Focus

  • Strengthening business momentum and customer relationships
  • Improving operational efficiency
  • Focus on value-added products including stretch fabrics, technical textiles, and automotive textiles
  • Exploring partnerships in Asian manufacturing hubs
  • Targeting expansion in US, Europe, Japan, South Korea, and UK markets
  • Leveraging China+1 strategy opportunities

Manufacturing Capabilities

  • Yarn Capacity: 32,712 TPA
  • Multi-specialty yarn range with functional features
  • Production of blends using viscose, polyester, acrylic, lycra, cotton, linen
  • Global certifications: GRS (Global Recycled Standard), Oekotex, ISO
  • Major clients include Peerless Clothing, Next UK, and Uniqlo Japan

Leadership Team

  • Mr. Rakesh Mehra - Chairman (56 years experience in textiles)
  • Mr. Ravindra Kumar Toshniwal - Vice-Chairman (Chartered Accountant, 37 years experience)
  • Mr. Shaleen Toshniwal - Managing Director (B.Tech from IIT Mumbai, 36 years experience)
  • Mr. Rahul Mehta - Independent Director (41+ years garment industry experience)
  • Mr. Udaypaul Singh Gill - Independent Director (extensive textiles and management experience)
  • Mr. Ajay Sharma - Independent Director (37 years banking experience)
  • Mrs. Kavita Soni - Wholetime Director (business administration and HR experience)

Dividend History

The company has consistently declared dividends year-on-year (specific amounts not quantified in this document).

CSR Activities

  • RL Toshniwal Udyan development and maintenance
  • Police Lines library construction in Banswara
  • OSCAR sports-for-development programme support
  • Shikshantar fellowship programme for tribal girls in Udaipur

Industry Context

  • India is world's second-largest textile producer and sixth-largest exporter
  • Domestic textile and apparel market estimated at $225 billion in 2025
  • Projected to reach $646.96 billion by 2033 at 11.98% CAGR
  • Textile exports target of $105 billion by 2030 from current $35 billion