Financial Performance Overview

  • Revenue from Operations: ₹3,719.813 million for FY 2025-26, compared to ₹3,445.268 million in FY 2024-25, representing a 7.97% year-on-year growth.
  • Export Revenue: ₹2,300.363 million, accounting for 61.84% of total revenue (FY 2024-25: ₹2,208.834 million).
  • Home Textiles Segment Revenue: ₹1,919.767 million, demonstrating strong performance in value-added products.
  • Profit Before Depreciation and Interest: ₹293.4 million (FY 2024-25: ₹699.4 million).
  • Profit After Tax (PAT): ₹111.958 million, a significant decline from ₹453.741 million in the previous year, representing a 75.3% decrease.
  • Exceptional Item: ₹30.232 million charge related to incremental gratuity provision under new labor codes and foreign exchange impact.
  • Tax Expense: ₹37.635 million for current year tax, with ₹0.192 million in adjustments from prior years.
  • Dividend: No dividend recommended for FY 2025-26. The company had issued bonus shares in 2025 (3:2 ratio) and paid a final dividend of ₹0.75 per share including bonus shares for FY 2024-25.
  • Retained Earnings: ₹858.8 million carried forward to next year (FY 2024-25: ₹821.9 million).

Operational Highlights

  • Manufacturing Capacity: 277 weaving machines producing approximately 1.7 million meters of fabric per month.
  • Modernization Investment: Over ₹250 million invested in new machinery including:
  • 4 ITEMA Rapier looms with Leno attachment from Italy (₹35.5 million)
  • 4 PICANOL OPTIMAX looms with Staubli Jacquard (₹18.0 million)
  • 2 PICANOL ULTIMAX rapier looms (₹21.3 million)
  • Sectional warping machine (₹10.8 million)
  • Automatic folding machine (₹2.0 million)
  • Fire hydrant system installation (₹9.2 million)
  • Energy Efficiency: Installed 2 energy-efficient compressors (₹7.2 million) achieving savings of 209 units per day, and replaced fans saving 181 units daily.
  • Green Energy: Generated 9.431 million units from own renewable sources (6.31 MW capacity) and purchased 3.237 million units from market.

Capital Structure Changes

  • Bonus Issue: Issued 60,341,400 bonus shares (3:2 ratio) during the year, increasing issued capital from 40,227,600 to 100,569,000 shares of ₹1 each.
  • Share Capital: Increased to ₹100.569 million from ₹40.228 million due to bonus issue.

Corporate Governance

  • Board Composition: 9 directors including 1 executive (CMD), 5 non-executive independent, and 3 non-executive directors (including 1 woman director).
  • Board Meetings: 8 meetings held during the year with full attendance from most directors.
  • Committees: Audit Committee, Nomination & Remuneration Committee, CSR Committee, and Stakeholders Relationship Committee functioning with defined charters.
  • Director Retirement: V. Kasinathan retires by rotation and is eligible for re-appointment at the AGM.

AGM Details

  • 79th Annual General Meeting: Scheduled for July 31, 2026, at 4:45 PM through video conferencing.
  • Business Items:

1. Adoption of financial statements

2. Re-appointment of V. Kasinathan as director

3. Ratification of cost auditor remuneration of ₹70,000 for Mr. A.N. Raman

  • E-voting: Opens July 26, 2026 (9:00 AM) and closes July 30, 2026 (5:00 PM) through KFin Technologies.

Related Party Transactions

Transactions entered with related parties including Thiagarajar Mills Private Limited and Colour Yarns Private Limited for:

  • Purchase of goods: ₹399.168 million
  • Availing services: ₹137.254 million
  • CSR contributions: ₹3.484 million

All transactions reported to be at arm's length and within approved limits.

CSR Activities

  • CSR Expenditure: ₹2.761 million spent against obligation of ₹5.626 million (2% of average net profit).
  • Focus Areas: Promotion of education through implementing agency KKTCMCT (CSR00003093).
  • Unspent Amount: ₹2.976 million transferred to unspent CSR account.

Risk Factors

Management cited several challenges affecting profitability:

  • Geopolitical tensions and war-related disruptions
  • Increased tariff burdens
  • Volatility in raw material prices (especially cotton)
  • Currency fluctuations (9.5% depreciation against USD)
  • Higher logistics and shipping costs

Outlook

Despite short-term challenges, management remains optimistic about:

  • India's position as preferred global sourcing destination
  • Diversification into new markets (Europe, Japan, UK, Australia)
  • Growing demand for premium home textiles
  • Long-term growth opportunities from supply chain diversification trends

Additional Information

  • Employee Strength: No employees drawing remuneration exceeding ₹10.2 million per annum.
  • ISO Certifications: Quality Management System, 5S Certification, GOTS Certification for organic cotton.
  • Awards: TEXPROCIL Gold Award for Highest Global Exports and Best Kaizen Award 2026.
  • Bankers: State Bank of India, IDBI Bank Limited, HDFC Bank Limited.
  • Compliance: No material orders from regulators/courts impacting going concern status.