AKSHAR - Akshar Spintex
Financial Performance
Revenue Growth by Segment
The company operates in a single segment, 'Spinning of Cotton Yarn', which generated INR 48.53 Cr in H1 FY26, representing a decline of 19.4% compared to INR 60.21 Cr in H1 FY25.
Geographic Revenue Split
100% of revenue is derived from domestic operations in India, with the sole manufacturing facility located in Haripar, Jamnagar, Gujarat.
Profitability Margins
Net Profit Margin worsened from -1.6% in H1 FY25 to -6.6% in H1 FY26. The company reported a net loss of INR 3.20 Cr for H1 FY26, a 229.7% increase in loss compared to INR 0.97 Cr in H1 FY25.
EBITDA Margin
EBITDA margin (PBILDT) was negative 2.4% (INR -2.08 Cr) for 9MFY25. Core profitability remains negative as total expenses of INR 52.83 Cr exceeded total income of INR 49.50 Cr in H1 FY26.
Capital Expenditure
Historical capital expenditure for H1 FY26 was INR 1.02 Cr for Property, Plant & Equipment. No future planned capex was disclosed.
Credit Rating & Borrowing
The company is rated CARE D (Default) as of April 2025. Total bank facilities are INR 18.27 Cr, including INR 16.92 Cr long-term and INR 1.35 Cr short-term. Borrowing costs are high due to default status and poor liquidity.
Operational Drivers
Raw Materials
Cotton (86.3% of total cost).
Import Sources
Gujarat, India.
Key Suppliers
Not disclosed in available documents.
Capacity Expansion
Current installed capacity is 24,480 spindles (6,000 MTPA). No expansion plans were disclosed.
Raw Material Costs
Raw material costs were INR 41.89 Cr in H1 FY26, representing 86.3% of revenue, compared to INR 51.02 Cr in H1 FY25.
Manufacturing Efficiency
Not disclosed in available documents.
Logistics & Distribution
Not disclosed in available documents.
Strategic Growth
Expected Growth Rate
Not disclosed in available documents.
Growth Strategy
The company raised INR 48.75 Cr via a Rights Issue in October 2024, allocating INR 33 Cr for working capital and INR 3.45 Cr for debt repayment to stabilize operations and reduce finance costs, which fell 66% YoY in H1 FY26.
Products & Services
Carded, combed, and compact cotton yarn (16s to 44s counts).
Brand Portfolio
Not disclosed in available documents.
New Products/Services
Not disclosed in available documents.
Market Expansion
Not disclosed in available documents.
Market Share & Ranking
Not disclosed in available documents.
Strategic Alliances
Not disclosed in available documents.
External Factors
Industry Trends
The cotton textile industry is facing demand headwinds. ASL is struggling with a 19.4% revenue decline and a 'Default' rating, positioning it as a high-risk entity compared to solvent peers.
Competitive Landscape
Fragmented industry with significant competition from larger, more liquid spinning mills.
Competitive Moat
No durable moat. The company lacks internal controls, as evidenced by the auditor's inability to verify fixed assets (INR 37.79 Cr) and inventories (INR 40.33 Cr).
Macro Economic Sensitivity
Highly sensitive to cotton price cycles and domestic textile demand.
Consumer Behavior
Not disclosed in available documents.
Geopolitical Risks
Not disclosed in available documents.
Regulatory & Governance
Industry Regulations
Compliance with pollution control norms and textile manufacturing standards is required for spinning operations.
Environmental Compliance
Not disclosed in available documents.
Taxation Policy Impact
Standard corporate tax rates apply; the company reported a deferred tax asset of INR 0.81 Cr as of September 2025.
Legal Contingencies
Not disclosed in available documents.
Risk Analysis
Key Uncertainties
Default status (CARE D), poor liquidity, and auditor's disclaimer on asset verification.
Geographic Concentration Risk
100% of manufacturing and revenue concentrated in Gujarat.
Third Party Dependencies
High dependency on cotton suppliers for 86% of input costs.
Technology Obsolescence Risk
Risk of technological obsolescence for 24,480 spindles due to lack of a fixed asset register and maintenance tracking.
Credit & Counterparty Risk
Trade receivables of INR 5.96 Cr; quality is uncertain given the auditor's disclaimer on internal controls.