Management Commentary

Mr. Priyavrata Mafatlal, MD and CEO, stated that the company's long-term strategy of value-focused growth is reflecting in business mix. The integrated Uniform Solutions and Digital Infrastructure business reported revenue of INR 540.0 Cr in Q2FY27, up 24.6% YoY, and INR 987.9 Cr for H1FY27, up 19.8% YoY. The company continues selective approach in Consumer Durables, prioritizing strategically aligned opportunities. Quarterly margins were impacted by elevated cost of power & fuel, sub-contracting and logistics. During the quarter, the company successfully executed a large-scale Uniform Solutions order across ~28,000 schools in 33 districts, involving last-mile distribution of school uniform, school bags and shoes. Also executed project for setting up 128 computer labs in Adarsha Vidyalaya schools, including desktops, interactive panels and AI-enabled teaching software.

Financial Highlights - Q2FY27 vs Q2FY26

  • Revenue from Operations: INR 794.1 Cr vs INR 1,029.6 Cr (down 22.9%)
  • Operating EBITDA*: INR 14.6 Cr vs INR 29.5 Cr (down 50.3%)
  • Operating EBITDA Margin: 1.8% vs 2.9%
  • Profit Before Tax: INR 14.8 Cr vs INR 29.0 Cr (down 48.9%)
  • PBT Margin: 1.8% vs 2.8%
  • Profit After Tax: INR 11.0 Cr vs INR 22.2 Cr (down 50.3%)
  • PAT Margin: 1.4% vs 2.1%
  • Cash PAT (PAT + Depreciation + Deferred Tax): INR 19.0 Cr vs INR 33.0 Cr

Financial Highlights - H1FY27 vs H1FY26

  • Revenue from Operations: INR 1,736.5 Cr vs INR 2,269.9 Cr (down 23.5%)
  • Operating EBITDA*: INR 38.2 Cr vs INR 76.5 Cr (down 50.1%)
  • Operating EBITDA Margin: 2.2% vs 3.4%
  • Profit Before Tax: INR 34.4 Cr vs INR 71.2 Cr (down 51.7%)
  • PBT Margin: 2.0% vs 3.1%
  • Profit After Tax: INR 25.6 Cr vs INR 68.1 Cr (down 62.4%)
  • PAT Margin: 1.5% vs 3.0%
  • Cash PAT (PAT + Depreciation + Deferred Tax): INR 42.6 Cr vs INR 79.2 Cr

*Operating EBITDA excludes Dividend Income, Profit on sale of Investments (net), Profit on sale of Fixed assets, and Rent income from investment property. For Q2FY27, these amounted to INR 3.1 Cr, INR 1.5 Cr, INR 0.7 Cr, and INR 1.4 Cr respectively.

Segment Performance - Q2FY27 vs Q2FY26

Textile and Related Products:

  • Revenue: INR 469.6 Cr vs INR 417.7 Cr (up 12.4%)
  • EBIT: INR 5.9 Cr vs INR 17.9 Cr (down 66.9%)
  • EBIT Margin: 1.3% vs 4.3%

Digital Infrastructure:

  • Revenue: INR 70.3 Cr vs INR 15.8 Cr (up 344.1%)
  • EBIT: INR 9.7 Cr vs INR 3.2 Cr (up 201.7%)
  • EBIT Margin: 13.8% vs 20.3%

Consumer Durables and Others:

  • Revenue: INR 254.1 Cr vs INR 596.1 Cr (down 57.4%)
  • EBIT: INR 3.3 Cr vs INR 8.4 Cr (down 61.0%)
  • EBIT Margin: 1.3% vs 1.4%

Order Book Status

As of September 30, 2026, total order book stood at approximately INR 575 Cr, comprising:

  • INR 462 Cr in Textiles & Related Products
  • INR 87 Cr in Digital Infrastructure
  • INR 26 Cr in Consumer Durables

Balance Sheet Updates

As on 30th September 2026:

  • Gross debt: INR 83.2 Cr (Long-Term Debt of INR 32.2 Cr)
  • Compared to 31st March 2026: Gross Debt INR 60.8 Cr (Long-Term Debt of INR 33.1 Cr)
  • Ongoing order fulfilment impacted inventory, receivables and payables, reflected in short-term borrowings

Corporate Actions

The Board of Directors has:

  • Approved an interim dividend of INR 1 per equity share for FY27
  • Approved acquisition of an additional 20% stake in Pieflowtech Solutions, increasing shareholding to 80%, to strengthen Digital Infrastructure capabilities
  • The transaction is expected to be completed by December 31, 2026

Tax Impact

In accordance with Ind AS 12, the Company has recognised a deferred tax assets (net) charge of INR 3.8 Cr under tax expense during the quarter.

Historical Financial Context

H1FY27 Performance vs Full Year FY26:

  • Revenue: INR 1,736.5 Cr vs FY26 INR 3,870.4 Cr
  • Operating EBITDA: INR 38.2 Cr vs FY26 INR 113.8 Cr
  • PBT: INR 34.4 Cr vs FY26 INR 96.7 Cr
  • ROCE*: Not provided for H1FY27 vs FY26 23.0%

Additional Business Information

The company holds 15.12% in NOCIL Ltd, part of promoter holding. The presentation highlights the company's transformation from legacy textile player to diversified integrated uniform and other solutions provider with 120+ years of legacy.