Company Overview
Himatsingka Seide Limited reported its audited financial results for FY 2025-26, showing a challenging year with revenue declines but strategic repositioning for future growth. The company filed corrigendum to its 41st Annual Report to correct a typographical error on page 96, maintaining compliance with SEBI Listing Regulations.
Financial Performance Highlights
Consolidated Performance (₹ Lacs): Revenue from operations declined 9.5% to ₹251,509 from ₹277,820 in FY25, while total revenue decreased 4.1% to ₹272,724. Despite revenue pressure, EBITDA margin improved by 208 bps to 22.93%, though profit after tax declined 18.5% to ₹6,196.
Standalone Performance (₹ Lacs): Revenue from operations fell 15.2% to ₹188,240, with total revenue down 8% to ₹207,783. The company reported profit after tax of ₹6,013, significantly lower than FY25's ₹14,669, primarily due to a tax expense of ₹5,860 compared to a tax credit in the previous year.
Capital Structure & Borrowings
Total gross debt stood at ₹263,553 lacs with net debt of ₹257,923 lacs. The debt-equity ratio was 1.14x, and current ratio improved to 1.36x. Borrowings included secured term loans (₹100,377 lacs), NCDs (₹50,577 lacs), working capital loans (₹75,665 lacs), and unsecured foreign currency convertible bonds (₹11,754 lacs).
Strategic Business Update
The company announced a strategic shift from Home Textiles to Total Textile Solutions, expanding into Yarn, Fabric, and Apparel verticals. Manufacturing capacity includes 25,000 TPA integrated Terry Towel capacity and 211,584 spindles for integrated yarn manufacturing (world's largest cotton spinning plant under one roof).
Dividend & Capital Actions
The Board recommended a final dividend of ₹0.25 per share (5%) for FY26, subject to shareholder approval, with record date set for September 17, 2026. Post-reporting period, the Board approved raising up to ₹850 crore via Non-Convertible Debentures (₹600 crore base + ₹250 crore green shoe option) at 11.50% coupon rate.
Audit & Compliance
Auditors M S K A & Associates LLP issued an unqualified opinion, confirming adequate internal financial controls and compliance with Companies Act 2013. Key audit matters included impairment assessment of ₹50,453 lacs goodwill and government grant recognition. The company recognized ₹268 lacs past service cost due to preliminary assessment of India's New Labour Codes.
Risk Factors & Market Exposure
The company faces significant foreign currency risk (70% revenue from North America), interest rate risk (majority borrowings at floating rates), and customer concentration risk (two customers contributing 45% of revenue). A 1% USD strengthening would increase profit before tax by ₹341 lacs.
Related Party Transactions
Subsidiaries include Himatsingka Wovens Private Limited, Himatsingka Holdings NA Inc., and Himatsingka America Inc. Trade receivables from related parties stood at ₹150,480 lacs, with corporate guarantees of ₹2,789 lacs provided to subsidiaries.