Texel Industries Ltd (526638)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Texel Industries' revenue was ₹28.5 Cr (+10.6% year on year, +20.5% on the previous quarter), and net profit ₹1.1 Cr (+35.6% year on year); the operating margin was 14.0%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹28.5 | +10.6% | +20.5% |
| Operating profit | ₹4.0 | +52.3% | from loss |
| Net profit | ₹1.1 | +35.6% | from loss |
| EPS (₹) | 0.75 | +27.1% | from loss |
| Operating margin | 14.0% | — | — |
📢 Recent Corporate Announcements
Texel Industries has appointed Mr. Rasesh Girish Shah as an Additional Director (Non-Executive Non-Independent) effective August 13, 2026. Mr. Shah brings specialized expertise in the geosynthetics sector, specifically in government-related infrastructure and water management projects involving the Indian Army and Border Roads Organisation. He previously facilitated a pilot 'Farm Ponds' project for Texel with the Gujarat Government, aligning with the company's focus on water conservation solutions. This strategic addition aims to leverage his institutional experience to scale the company's Rs 99 Cr revenue base.
- Appointment of Mr. Rasesh Girish Shah as Additional Director effective August 13, 2026
- Director has prior experience facilitating a pilot 'Farm Ponds' project for Texel with the Gujarat Government
- Expertise includes supply and application of geosynthetics for the Border Roads Organisation (BRO) and Indian Army
- Company currently operates with an installed manufacturing capacity of 23,680 metric tonnes
- Appointment is subject to approval by the members of the company
Texel Industries reported a strong start to FY27, with Q1 revenue rising 10.6% YoY to ₹28.48 Cr. The company successfully turned around from a loss of ₹0.86 Cr in the previous quarter (March 2026) to a profit of ₹1.06 Cr. This performance represents a 35.9% YoY growth in PAT compared to ₹0.78 Cr in June 2025. Additionally, the company confirmed the completion of its warrant conversion process in April 2026, securing the final ₹2.25 Cr of the total ₹3.00 Cr fundraise.
- Revenue from operations grew 10.6% YoY to ₹28.48 Cr from ₹25.75 Cr.
- Net Profit reached ₹1.06 Cr, marking a significant recovery from the ₹0.86 Cr loss in the preceding quarter.
- Basic EPS improved to ₹0.75 for the quarter, up from ₹0.59 in the year-ago period.
- Completed the conversion of 7,84,312 warrants into equity shares in April 2026, receiving the final 75% payment of ₹2.25 Cr.
- Technical Textile segment contributed 100% of revenue this quarter, with the property development segment recording nil revenue.
Texel Industries reported a standalone PAT of ₹1.06 Cr for Q1 FY27, a 35.9% increase over the ₹0.78 Cr reported in Q1 FY26. Revenue grew 10.6% YoY to ₹28.48 Cr, showing a strong recovery from the ₹0.86 Cr loss recorded in the previous quarter (Mar 2026). The company also confirmed the full utilization of ₹22 Cr raised through preferential issues and warrants. A new Non-Executive Director, Mr. Rasesh Girish Shah, was appointed to the board.
- Standalone Revenue of ₹28.48 Cr represents ~28.7% of TTM revenue
- Net Profit of ₹1.06 Cr marks a turnaround from a ₹0.86 Cr loss in Q4 FY26
- Technical Textile segment profit reached ₹1.04 Cr for the quarter
- Preferential capital of ₹21.99 Cr (approx. 51% of net worth) has been fully utilized as of April 2026
Texel Industries has scheduled a board meeting for August 13, 2026, to approve unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The company is coming off a weak March 2026 quarter where it reported a net loss of ₹1.63 Cr on revenue of ₹23.64 Cr. Investors will be monitoring for a recovery in operating margins, which were negative in the previous quarter compared to a TTM average of 9.0%. The trading window, closed since July 1, 2026, will reopen 48 hours after the results are declared.
- Board meeting scheduled for August 13, 2026, to approve Q1 FY27 results
- Trading window remains closed until 48 hours after the August 13 announcement
- Company reported a net loss of ₹1.63 Cr in the preceding quarter ended March 2026
- TTM revenue stands at ₹99 Cr with a market capitalization of ₹96 Cr
- Promoter holding recently increased to 29.65% as of April 2026 from 25.5% in March 2026
Financial Performance
Revenue Growth by Segment
Total revenue from operations was approximately INR 115.31 Cr. Segment contributions included Tarpaulins at INR 25.86 Cr (22.35% of total), Property Development at INR 7.08 Cr (6.12% of total), and Geotextiles at INR 8.47 Cr.
Geographic Revenue Split
Not disclosed in available documents, though the company reports witnessing healthy demand across both domestic and international markets with woven geotextiles seeing growing acceptance in exports.
Profitability Margins
Operating Profit Margin was 8.04% (down 50% from 16.08% YoY). Net Profit Margin improved to 4.22% from -8.86% in the previous year, representing a turnaround from a loss of INR 8.41 Cr to a profit of INR 4.89 Cr.
EBITDA Margin
Operating Profit Margin stood at 8.04% for FY 2024-25. The 50% decline from the previous year's 16.08% was primarily driven by increased input costs and higher operating expenses despite revenue growth.
Credit Rating & Borrowing
The Debt-Equity Ratio improved significantly to 0.19 from 4.90 (a 96.12% reduction) due to profit retention and new equity infusion. Interest Coverage Ratio improved by 356.34% to 3.24 due to higher earnings and reduced interest burden.
Operational Drivers
Raw Materials
Not specifically named in documents, though 'increased input costs' are cited as the primary reason for the 50% decline in operating margins.
Capacity Expansion
Current total installed manufacturing capacity is 23,680 metric tonnes at the Kheda facility, with a total practical capacity of approximately 19,080 metric tonnes.
Raw Material Costs
Input costs increased during the year, leading to a 50% reduction in operating profit margins despite revenue growth. The company is focusing on cost optimization and improving production efficiencies to mitigate these impacts.
Manufacturing Efficiency
Practical capacity utilization is approximately 80.5% (19,080 MT practical vs 23,680 MT installed). The company is focusing on improving production efficiencies and cost optimization.
Strategic Growth
Growth Strategy
Growth is pursued through broadening the product mix, focusing on high-margin value-added products, cost optimization, and selective expansion into untapped markets. The company also initiated property development to unlock value from non-core assets, contributing 6.12% to turnover.
Products & Services
Technical textile products including geomembranes, geotextiles, ground covers, tarpaulins, and water proof membranes. Services include property development of surplus land.
New Products/Services
New product development includes Water Proof Membranes and the initiation of the Land, Building & Property Development segment which generated INR 7.08 Cr in its first year.
Market Expansion
Targeting international markets for woven geotextiles and untapped domestic markets for water conservation solutions to achieve stability in operations and profitability.
External Factors
Industry Trends
The technical textile industry is evolving with growing demand for water conservation and disaster relief solutions. The company is positioning itself by expanding its product portfolio and geographical presence.
Competitive Landscape
The company operates in a competitive environment where operational efficiency and innovation in value-added products are critical for margin protection.
Competitive Moat
Durable advantages include over 35 years of experience in technical textiles and established manufacturing capabilities at the Kheda facility. Sustainability is supported by a focus on water conservation solutions.
Macro Economic Sensitivity
Performance is closely tied to the pace of economic growth, inflationary trends, and consumer spending power, particularly in the agriculture and retail segments.
Consumer Behavior
Demand is influenced by government schemes in the agro segment and sustained demand from industry and retail markets for tarpaulins.
Geopolitical Risks
Performance is dependent on changes in the geopolitical scenario and global economic conditions which affect commodity prices and business risk.
Regulatory & Governance
Industry Regulations
Operations are subject to governing laws, political factors, and changes in government rules and regulations regarding manufacturing and property development.
Environmental Compliance
The company considers environmental and sustainability issues as part of its strategic formulations, though specific ESG costs are not disclosed.
Risk Analysis
Key Uncertainties
Key risks include raw material price volatility, changes in government regulations, and geopolitical shifts that could impact input costs and demand.
Geographic Concentration Risk
Not disclosed in available documents, though the company has a presence in both domestic and international markets.
Third Party Dependencies
High dependency on contract labor, with 226 contract workers compared to 66 employees on the payroll as of March 31, 2025.
Technology Obsolescence Risk
The company is addressing technology risks by planning a migration from its current ERP system to a customized ERP to mitigate operational risks.
Credit & Counterparty Risk
Debtors Turnover Ratio improved to 9.62, indicating better collection efficiency and reduced credit risk from counterparties.
