FIBERWEB - Fiberweb (India)
📢 Recent Corporate Announcements
Fiberweb (India) Limited has secured over 15 new export orders from the United States, cumulatively valued at more than ₹8 Crore. This surge in business follows a significant reduction in US reciprocal tariffs on Indian goods, which dropped from 50% to 18%. The orders were received within a record window of just a few hours after the trade policy announcement. As a 100% Export Oriented Unit (EOU), the company expects strong operational performance in the upcoming period due to improved market visibility and demand for its nonwoven fabric products.
- Secured 15+ new export orders from the US market within a few hours of the trade announcement
- Total cumulative value of the new orders exceeds ₹8 Crore
- US reciprocal tariffs on Indian goods reduced significantly from 50% to 18%
- Company expects strong operational performance based on current order book and business visibility
- Fiberweb operates as a 100% Export Oriented Unit (EOU) specializing in spunbond and melt-blown nonwoven fabrics
Fiberweb (India) Limited has submitted its Structured Digital Database (SDD) compliance certificate for the quarter ended December 31, 2025. This filing confirms the company's adherence to SEBI (Prohibition of Insider Trading) Regulations, which requires tracking of Unpublished Price Sensitive Information (UPSI). The company reported that 1 specific event requiring UPSI logging occurred during the quarter and was successfully captured. Such filings are mandatory for listed entities to ensure transparency and prevent insider trading.
- Confirmed compliance with Regulation 3(5) and 3(6) of SEBI PIT Regulations for the quarter ended December 31, 2025
- Successfully captured 1 UPSI event in the Structured Digital Database during the reporting period
- Maintains a non-tamperable internal database with an audit trail capability of 8 years
- Certified that access controls and time-stamping for UPSI dissemination are fully functional
Fiberweb (India) Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by MUFG Intime India Private Limited, confirms that all share dematerialization requests for the quarter ended December 31, 2025, were processed within the mandated timelines. It verifies that the security certificates received were mutilated, cancelled, and the name of the depositories substituted in the register of members. This filing is a standard administrative requirement to ensure the integrity of the company's shareholding records.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Registrar MUFG Intime India Private Limited confirmed processing of all dematerialization requests.
- Securities involved are confirmed to be listed on the BSE and NSE stock exchanges.
- Verification and cancellation of physical certificates were completed within prescribed timelines.
Fiberweb (India) Limited has announced the closure of its trading window for all designated persons and their immediate relatives starting January 1, 2026. This routine regulatory measure is in preparation for the declaration of the company's unaudited financial results for the quarter and nine months ending December 31, 2025. The window will remain closed until 48 hours after the financial results are officially announced to the stock exchanges. Additionally, the PAN of designated persons will be frozen by the depository during this period to ensure compliance with SEBI insider trading regulations.
- Trading window closure effective from Thursday, January 1, 2026.
- Closure pertains to the unaudited financial results for the quarter and nine months ended December 31, 2025.
- The window will reopen 48 hours after the board meeting results are declared.
- PAN of Designated Persons will be frozen by the Designated Depository as per SEBI circular dated July 19, 2023.
Financial Performance
Revenue Growth by Segment
Total revenue grew by 18.5% YoY to INR 102.99 Cr in FY25 from INR 86.89 Cr in FY24. H1 FY26 revenue showed a slight contraction of 2.5% to INR 49.90 Cr compared to INR 51.21 Cr in H1 FY25, primarily due to timing of export shipments.
Geographic Revenue Split
The company is a 100% Export Oriented Unit (EOU) with approximately 75-80% of revenue derived from exports. The USA is the primary market accounting for ~80% of total exports, followed by Europe at ~10% and Australia at ~10%. Other regions include the UK, South Africa, and the Gulf.
Profitability Margins
Net Profit Margin significantly improved to 14.58% in FY25 from 8.37% in FY24. H1 FY26 Net Profit Margin further expanded to 15.25% (INR 7.61 Cr) from 12.58% (INR 6.44 Cr) in H1 FY25, driven by operational discipline and lower raw material costs.
EBITDA Margin
EBITDA Margin stood at 21.83% (INR 22.46 Cr) in FY25, a substantial increase from 14.32% (INR 11.35 Cr) in FY24. This 751 bps improvement resulted from better absorption of fixed costs and moderated input prices. H1 FY26 EBITDA margin remained strong at 21.00%.
Capital Expenditure
The company is undertaking a major debt-funded expansion of INR 168.52 Cr for a new 12,000 MTPA Spun-lace fabric project. As of September 30, 2025, INR 30.32 Cr (18% of project cost) has been incurred through internal accruals.
Credit Rating & Borrowing
Assigned CARE BBB-; Stable for long-term bank facilities (INR 115 Cr) and CARE A3 for short-term facilities (INR 20 Cr) in November 2025. The company was previously zero-debt but is now leveraging to fund its INR 168.52 Cr capex.
Operational Drivers
Raw Materials
Polypropylene (PP) is the primary raw material, accounting for the majority of the INR 55.25 Cr material cost in FY25 (approx. 54% of total revenue).
Import Sources
Raw materials are partially imported to provide a natural hedge against foreign exchange fluctuations. Specific countries are not named, but critical machinery for expansion is sourced from China.
Capacity Expansion
Current installed capacity is 8,000 MTPA (5,000 MTPA Spun-bond and 3,000 MTPA Melt-blown). Planned expansion will add 12,000 MTPA of Spun-lace fabric, bringing total capacity to 20,000 MTPA by January 2027.
Raw Material Costs
Cost of materials consumed was INR 55.25 Cr in FY25, up 16.8% from INR 47.31 Cr in FY24. Procurement strategies involve balancing domestic and imported PP to manage price volatility.
Manufacturing Efficiency
Profitability improved in FY25 due to better absorption of fixed costs across its 85,000 sq. ft. Daman plant. PBILDT margins recovered from a low of 4.94% in FY23 to 21.83% in FY25.
Logistics & Distribution
Vulnerability to freight rates is high; elevated logistics costs in FY23 previously compressed margins to 4.94% as they could not be fully passed to international clients.
Strategic Growth
Expected Growth Rate
150%
Growth Strategy
Growth will be achieved by more than doubling total capacity from 8,000 MTPA to 20,000 MTPA through the INR 168.52 Cr Spun-lace project. The strategy focuses on high-growth segments like hygiene, medical, and agro-textiles, leveraging 40 years of technical expertise and 100% EOU status.
Products & Services
Spun-bond non-woven fabrics, Melt-blown non-woven fabrics, medical and industrial gowns, overalls, aprons, car covers, and specialized fabrics for hygiene and agriculture.
Brand Portfolio
Fiberweb
New Products/Services
Spun-lace non-woven fabrics are the primary new product line, expected to contribute significantly to revenue post-2027 commissioning.
Market Expansion
Targeting expansion in technical textile applications for defense, infrastructure, and smart wearable textiles in FY 2025-26.
Market Share & Ranking
Positioned as a leader in the Indian non-woven fabric industry; first in India to venture into spun-bond non-woven fabrics.
Strategic Alliances
The company is exploring technological partnerships and inorganic growth opportunities to stay competitive in the evolving technical textile industry.
External Factors
Industry Trends
The technical textile sector is growing due to increased adoption in medical, defense, and infrastructure. Global supply diversification (China+1) is benefiting Indian exporters like Fiberweb.
Competitive Landscape
Operates in a competitive global market for non-woven fabrics, competing with both domestic manufacturers and large-scale international producers.
Competitive Moat
Sustainable moat built on a 40-year operational track record, specialized technical expertise in non-woven fabrics, and long-standing relationships with international clients in regulated sectors like healthcare.
Macro Economic Sensitivity
Highly sensitive to global demand for hygiene and medical products. Margins are sensitive to global crude oil prices which dictate Polypropylene (PP) costs.
Consumer Behavior
Rising global hygiene awareness and demand for disposable medical wear are driving long-term volume growth for melt-blown and spun-bond products.
Geopolitical Risks
Trade barriers or supply chain disruptions in China could delay the INR 168.52 Cr capex project due to machinery import dependencies.
Regulatory & Governance
Industry Regulations
Must comply with international standards for medical and hygiene products; subject to 100% EOU regulations and export-import statutes.
Environmental Compliance
Certified ISO 14001:2015 (Environmental Management) and ISO 45001:2018 (Occupational Health and Safety).
Taxation Policy Impact
Effective tax rate is approximately 11.4% based on FY25 figures (INR 1.93 Cr tax on INR 16.93 Cr PBT). Deferred Tax Asset of INR 1.68 Cr as of March 2025.
Risk Analysis
Key Uncertainties
Project execution risk for the INR 168.52 Cr expansion; only 18% complete as of late 2025. Potential for cost/time overruns could impact the 2027 COD.
Geographic Concentration Risk
Extreme concentration with ~80% of exports going to the USA, making the company vulnerable to US-specific economic or regulatory shifts.
Third Party Dependencies
High dependency on Chinese machinery suppliers for the new project and global PP producers for raw materials.
Technology Obsolescence Risk
The shift toward 'smart' textiles and sustainable/biodegradable non-wovens requires ongoing R&D to avoid obsolescence.
Credit & Counterparty Risk
Trade receivables increased to INR 16.67 Cr in FY25 from INR 12.52 Cr in FY24, reflecting higher sales volume but requiring careful monitoring of international credit terms.