Document Overview

Shiva Texyarn filed its Annual Report for FY 2025-26 with BSE and NSE, reporting consolidated financial results alongside detailed operational updates and corporate actions.

Financial Performance

Consolidated Results:

  • Revenue from Operations: ₹340.52 crore (FY25: ₹322.71 crore)
  • Net Profit: ₹102.12 crore (FY25: ₹120.63 crore), representing a 3% decline
  • Total Comprehensive Income: ₹988.36 lakhs
  • Earnings Per Share: ₹7.88

Standalone Highlights:

  • Profit after Tax: ₹972.45 lakhs
  • Revenue from Operations: ₹34,052.40 lakhs
  • Export Sales: ₹542.81 lakhs
  • Domestic Sales: ₹33,509.59 lakhs

Cash Flow & Balance Sheet:

  • Net Cash from Operating Activities: ₹497.92 crore (significant improvement from ₹133.36 crore in FY25)
  • Total Borrowings reduced by ₹296.75 crore to ₹698.31 crore
  • Cash and Cash Equivalents: ₹69.34 crore (FY25: ₹9.46 crore)
  • Total Equity: ₹1,452.62 crore

Operational Metrics

  • Yarn Production: 2,994.11 tonnes
  • Yarn Sales: 3,103.74 tonnes
  • Wind Power Generation: 118.92 lakh units (entirely for self-consumption)
  • Number of Spindles: 52,416

Key Business Developments

Defense Contracts:

  • Received order for 15,000 sets of Extreme Cold Weather Clothing System (Suit) for June 2026 delivery
  • Additional order for 24,585 sets from Department of Military Affairs, Indian Army for FY 2026-27

Expansion Initiatives:

  • Proposed amendment to Memorandum of Association to include:
  • Interior Design Materials, Wall Design Papers, Decorative Textile Materials
  • Artificial Intelligence, Robotics Technology, Nano-Technology R&D
  • Customized products for Military, Defence, Airforce, Marine sectors
  • Obtained Udyam Registration Certificate as Medium Enterprise
  • Focusing on manufacture of finer counts of yarn and replacing inefficient spindles

Dividend & Corporate Actions

  • Recommended final dividend of ₹0.60 per equity share (6% on face value of ₹10)
  • Dividend payment date: On or before September 26, 2026, if approved
  • Record Date: August 20, 2026
  • Shareholders to vote on amendments to Memorandum and Articles of Association

AGM Details

  • 45th Annual General Meeting: August 27, 2026 at 10:00 AM via Video Conferencing
  • Key Agenda Items:

1. Adoption of Financial Statements

2. Declaration of Dividend

3. Re-appointment of Smt. S Sujana Abirami as Director

4. Amendment to Memorandum and Articles of Association

5. Ratification of Cost Auditor remuneration of ₹1,00,000

Financial Ratios (Improvement Trends)

  • Current Ratio: 1.34 (FY25: 1.07)
  • Debt-Equity Ratio: 0.48 (FY25: 0.73)
  • Debt Service Coverage Ratio: 1.42 (FY25: 1.25)
  • Return on Equity: 7.03% (FY25: 8.89%)
  • Inventory Turnover Ratio: 4.94 (FY25: 4.87)
  • Trade Receivables Turnover Ratio: 9.19 (FY25: 8.85)

Credit Rating & Facilities

  • CARE Ratings Update:
  • Long Term Bank Facilities: CARE BBB; Stable (Revised from Negative)
  • Short Term Bank Facilities: CARE A3+
  • Total Facilities: ₹190.99 crores

Corporate Governance

  • Board Composition: 8 Directors (2 Non-Executive Non-Independent, 1 Managing Director, 1 Woman Director, 4 Independent Directors)
  • Board Meetings: 4 meetings held during FY25-26
  • Committee Meetings: Audit Committee (4), Nomination & Remuneration Committee (3), Stakeholders Relationship Committee (12)

Forward Outlook

The company continues to focus on technical textiles segment with secured defense orders providing revenue visibility. The expansion into new technology areas through MOA amendment is expected to drive future growth opportunities, supported by improved financial metrics and reduced leverage.