Event Type: Q1 FY27 Earnings Conference Call
Date and Time: The conference call was held on Thursday, July 30, 2026 at 04:00 PM (IST).
Purpose: Discussion of quarterly results for the first quarter ended June 30, 2026, including operational performance, market environment, and strategic updates.
Management Participants:
- Mr. R.S. Jalan – Non-Executive Director
- Mr. Raman Chopra – Non-Executive Director
- Mr. Marshal Sonavane – Chief Executive Officer
- Mr. M. Parasuraman – Chief Financial Officer
Moderator: The call was hosted by Go India Advisors LLP, moderated by Ms. Mehal Gogia.
Financial Period Discussed: Q1 FY27 (quarter ended June 30, 2026)
Financial Highlights Disclosed:
- Revenue: ₹410 crores (up 52% year-on-year)
- EBITDA: ₹70 crores
- PAT: ₹39 crores
- Yarn spread: ₹155 per kilo with packing cost (up from ₹138 per kilo in Q4 FY26)
- Fabric contribution to total sales: 16% (vs. 9% in same quarter last year)
- Yarn production utilization: 89% sold directly, 11% consumed in fabric production
Operational Updates:
- First 15 knitting machines installed with commercial production stabilized and quality acceptance from customers
- Additional 25 knitting machines to be installed in phases with part deliveries received and remaining to be completed during FY27
- 80-85% utilization achieved for the 15 knitting machines in Q1
- 11 MW solar energy project in pipeline with expected commissioning in December 2026
- Land allotment received under PM MITRA Park in Tamil Nadu
Strategic Themes and Forward-looking Statements:
- Target to double revenue to ₹2,000 crores by FY29
- Focus on expanding value-added product portfolio and vertical integration into ready-to-cut fabric
- Normalized EBITDA margin guidance of 14-15% for current business, targeting 16-18% for ready-to-cut fabric business
- Planned CAPEX of ₹350-400 crores for ready-to-cut fabric production facilities
- Current year CAPEX estimated at ₹100-120 crores including modernization and replacement
Market Environment Commentary:
- Domestic cotton prices volatile: ₹62,000 per candy (April '26) → ₹67,000 (May '26) → ₹64,000 (June '26) → ₹68,000 (current)
- Global cotton prices reached 80 cents per pound at end of June '26
- Demand environment encouraging with steady yarn market and price acceptance
- Structural tailwinds from India-UK FTA and upcoming India-Europe agreement
- US tariff policies and investigations remain key headwinds
Additional Disclosures:
- The transcript was filed pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- The intimation is available on BSE, NSE, and company websites
- The discussion included forward-looking statements subject to risks
Additional Notes Section
Attachments: The filing includes the complete transcript of the earnings conference call.
Financial Data: Actual financial figures for Q1 FY27 were disclosed in the conference call transcript.
Compliance Language: The document represents a regulatory filing of already-held investor communication rather than new UPSI disclosure.