HIMATSEIDE - Himatsing. Seide
📢 Recent Corporate Announcements
Himatsingka Seide Limited has officially reopened its trading window for designated persons and their immediate relatives effective February 16, 2026. This follows the conclusion of the Board of Directors meeting held on February 11, 2026, where the financial results for the quarter and nine months ended December 31, 2025, were approved. The reopening is a standard regulatory procedure under the SEBI (Prohibition of Insider Trading) Regulations, 2015. This update confirms that the restricted period for internal stakeholders to trade in company shares has ended.
- Trading window for designated persons reopened effective Monday, February 16, 2026.
- The reopening follows the approval of financial results for the period ended December 31, 2025.
- The Board meeting regarding the financial results was concluded on February 11, 2026.
- Compliance maintained under SEBI (Prohibition of Insider Trading) Regulations, 2015.
Himatsingka Seide reported Q3 FY26 consolidated revenue of INR 637.26 crores, down from INR 722 crores YoY due to high US tariff overhangs. A significant positive development is the reduction of US tariffs from 50% to 18%, which is expected to normalize margins starting FY27. The company is strategically diversifying away from US concentration, aiming for the US to contribute less than 50% of revenue within 24 months. Management is also targeting the Indian market to reach INR 400-500 crores in the next two years, supported by new product verticals and EU/UK FTAs.
- Consolidated revenue for Q3 FY26 stood at INR 637.26 crores vs INR 722 crores in the previous year.
- US import tariffs reduced from 50% to 18%, providing a major tailwind for FY27 margin recovery.
- Net debt as of December 31, 2025, was reported at INR 2,480 crores.
- Spinning plant utilization remained high at 99%, while Sheeting and Terry Towel saw a 100-200 bps correction.
- Targeting India domestic revenue of INR 400-500 crores in 18-24 months and INR 800-1,000 crores in 4-5 years.
Himatsingka Seide Limited (HSL) has provided updates on three significant legal matters. The company received a favorable ruling from APTEL regarding power supply rates to the State Grid, granting ₹5.56 per unit plus interest. However, HSL is contesting a ₹3.76 crore subsidy refund order from the Ministry of Textiles in the Karnataka High Court. Additionally, a recovery suit for ₹11.25 crores against Umiya Textiles remains pending in the Commercial Court, Bengaluru.
- APTEL passed a favorable order granting a rate of ₹5.56 per unit plus interest for power supplied to PCKL.
- HSL is pursuing a recovery suit of ₹11.25 crores against Umiya Textiles for 3,14,467 tonnes of unconverted cotton fibre.
- The company has filed a Writ Petition against a ₹3.76 crore subsidy refund order issued by the Textiles Commissioner.
- The Umiya Textiles case is currently at the stage where the defendant must file a written statement.
- The PCKL matter has moved to the implementation stage with a detailed letter dispatched for payment obligations.
Himatsingka Seide reported a weak Q3 FY26 with consolidated PAT falling 65.3% YoY to ₹7.62 crore. Total income declined 11.8% YoY to ₹637.26 crore, primarily due to tariff issues in the US market. EBITDA margins contracted by 79 bps to 19.0%, while capacity utilization in the sheeting and terry towel divisions remained low at 58% and 65% respectively. Despite the downturn, the company is focusing on non-US markets and domestic growth through its brand portfolio.
- Consolidated PAT plummeted 65.3% YoY to ₹7.62 crore in Q3 FY26
- Total Income decreased 11.8% YoY to ₹637.26 crore, impacted by US tariff overhang
- EBITDA margins contracted to 19.0% from 19.8% in the previous year's quarter
- Capacity utilization for Sheeting and Terry Towel divisions stood at 58% and 65% respectively
- Other income of ₹25.89 crore was supported by ₹24.51 crore in net foreign exchange gains
Himatsingka Seide Limited reported a consolidated revenue of ₹611.37 crore for Q3 FY26, marking a sequential decline from ₹629.57 crore in Q2 FY26. The company's net profit saw a sharp contraction, falling to ₹7.66 crore from ₹41.99 crore in the previous quarter. Additionally, the Board has approved the re-appointment of Grant Thornton Bharat LLP as the Internal Auditor for FY 2026-27. The results reflect a challenging quarter with compressed margins and high finance costs of ₹75.14 crore.
- Consolidated Revenue from operations decreased to ₹611.37 crore in Q3 FY26 from ₹629.57 crore in Q2 FY26.
- Net Profit (PAT) fell significantly to ₹7.66 crore compared to ₹41.99 crore in the previous quarter.
- Finance costs remained a major expense at ₹75.14 crore for the quarter ended December 31, 2025.
- Basic Earnings Per Share (EPS) declined to ₹0.61 from ₹3.34 on a quarter-on-quarter basis.
- Grant Thornton Bharat LLP re-appointed as Internal Auditors for the Financial Year 2026-27.
Himatsingka Seide reported a weak set of numbers for Q3 FY26, with consolidated Profit After Tax (PAT) falling sharply to ₹7.66 crore from ₹21.84 crore in the same period last year. Revenue from operations declined 11.6% YoY to ₹611.37 crore, reflecting potential demand headwinds or pricing pressures. On a sequential basis, the performance was significantly lower than Q2 FY26, where the company had reported a PAT of ₹42.00 crore. The board also confirmed the re-appointment of Grant Thornton Bharat LLP as internal auditors for FY 2026-27.
- Consolidated Revenue from operations decreased 11.6% YoY to ₹611.37 crore in Q3 FY26.
- Net Profit (PAT) for the quarter plummeted 64.9% YoY to ₹7.66 crore.
- Sequential PAT saw a massive drop from ₹42.00 crore in Q2 FY26 to ₹7.66 crore in Q3 FY26.
- 9M FY26 Revenue stands at ₹1,897.88 crore compared to ₹2,121.29 crore in 9M FY25.
- Basic EPS for the quarter declined to ₹0.61 from ₹1.74 in the corresponding quarter of the previous year.
Himatsingka Seide Limited has announced its earnings conference call for the third quarter and nine months ended December 31, 2025, scheduled for February 12, 2026, at 3:00 PM IST. This call follows the Board of Directors meeting on February 11, 2026, where the unaudited financial results will be formally considered and approved. The management team, including the Executive Vice Chairman and Group CFO, will be present to discuss the company's performance and answer investor queries. The session will be moderated by Elara Securities.
- Earnings call scheduled for Thursday, February 12, 2026, at 15:00 hrs IST.
- Board meeting to approve Q3 FY26 results is set for Wednesday, February 11, 2026.
- Management representation includes Executive Vice Chairman Shrikant Himatsingka and Group CFO M Sankaranarayanan.
- The call will cover financial performance for the quarter and nine-month period ended December 31, 2025.
Himatsingka Seide Limited has announced a change in the legal constitution of its statutory auditors, M S K A & Associates. Effective January 13, 2026, the firm has converted from a partnership to a Limited Liability Partnership (LLP). The firm is now known as M S K A & Associates LLP with ICAI registration number 105047W/W101187. This administrative change has no impact on the auditor's engagement or their remaining tenure with the company.
- Statutory Auditors M S K A & Associates converted to an LLP effective January 13, 2026
- New ICAI firm registration number is updated to 105047W/W101187
- No change in the engagement terms or the remaining tenure of the auditors
- The update was filed in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015
Himatsingka Seide Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, provided by KFin Technologies, confirms the processing of dematerialization and rematerialization requests for the quarter ended December 31, 2025. This filing ensures that the company's shareholding records with NSDL and CDSL are accurate and updated. As a standard administrative procedure, it does not reflect any change in the company's financial or operational status.
- Submission of Regulation 74(5) certificate for the quarter ended December 31, 2025.
- Certificate issued by Registrar and Transfer Agent KFin Technologies Limited.
- Confirms reporting of demat and remat requests to BSE and NSE as per SEBI norms.
- Ensures compliance with SEBI (Depositories and Participants) Regulations, 2018.
Himatsingka Seide Limited has notified the stock exchanges that its trading window for dealing in equity shares remains closed for the quarter and nine months ending December 31, 2025. This closure is a mandatory requirement under SEBI (Prohibition of Insider Trading) Regulations, 2015, to ensure compliance before the release of financial results. The restriction applies to all designated persons and their immediate relatives until further notice. The company will communicate the specific date for the board meeting to approve the un-audited financial results in the near future.
- Trading window closure in effect for the quarter and nine months ended December 31, 2025
- Compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015 and Company Code of Conduct
- Designated persons and relatives restricted from trading in company shares during this period
- Board meeting date for financial results approval to be announced in due course
Himatsingka Seide Limited has successfully allotted 1,000 Series 'B' Non-Convertible Debentures (NCDs) on a private placement basis to raise Rs 100 crore. These secured, unlisted instruments carry a coupon rate of 11.00% per annum and have a tenure of up to 39 months. The repayment structure includes a 12-month moratorium followed by 10 quarterly installments, with the final maturity set for March 19, 2029. The debt is secured by a first pari passu charge on the company's fixed assets at its Hassan and Doddaballapur plants.
- Total fundraise of Rs 100 crore through 1,000 NCDs with a face value of Rs 10 lakh each
- Coupon rate fixed at 11.00% per annum payable quarterly
- Instrument tenure of 39 months with a 12-month repayment moratorium
- Secured by fixed assets at Hassan and Doddaballapur plants with a 1.25x book value cover
- Repayment to be made in 10 quarterly installments starting after the first year
Himatsingka Seide Limited announced the retirement of Mr. Manu Kapur, President- Business Development (Group), Sales, from his position as Senior Management Personnel. The retirement is effective from December 15, 2025. This change is pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Investors should monitor upcoming leadership announcements for potential strategic shifts.
- Mr. Manu Kapur will retire on December 15, 2025
- Mr. Kapur's designation is President- Business Development (Group), Sales
- The announcement is under Regulation 30 of SEBI Listing Regulations
Himatsingka Seide Limited's board has approved the issuance of 1000 Series B Non-Convertible Debentures (NCDs) with a face value of ₹10,00,000 each, aggregating to ₹100,00,00,000 (₹100 Crore). These NCDs are INR denominated, unrated, unlisted, and transferable, and will be issued on a private placement basis. The tenure of the instrument is upto 39 months with a moratorium of 12 months followed by 10 quarterly installments. The coupon interest offered is 11.00% p.a.p.q.
- Issuance of 1000 Series B NCDs
- Each NCD has a face value of ₹10,00,000
- Aggregate amount of the issue is ₹100,00,00,000 (₹100 Crore)
- Coupon interest offered is 11.00% p.a.p.q.
- Tenure of the instrument is upto 39 months
Himatsingka Seide Limited has scheduled a board meeting for December 12, 2025, to consider a proposal for raising funds through Non-Convertible Debentures (NCDs). The issuance will be conducted on a private placement basis and is primarily intended for refinancing the company's existing debt. This move suggests a strategic effort to manage interest costs or extend debt maturity profiles. In line with SEBI regulations, the trading window for insiders has been closed with immediate effect.
- Board meeting scheduled for December 12, 2025, to approve fund raising via NCDs.
- Proposed NCD issuance will be on a private placement basis.
- Primary objective of the fundraise is the refinancing of existing debt obligations.
- Trading window for designated persons closed immediately as per SEBI Insider Trading regulations.
Financial Performance
Revenue Growth by Segment
Revenue is projected to decline by 10-15% in fiscal 2026, dropping from INR 2,778 Cr in FY25 to approximately INR 2,400-2,500 Cr. In Q1 FY26, the company recorded revenue of INR 657 Cr, a 10% YoY decline. Segment-wise, the Spinning division operated at 99% utilization, while Sheeting and Terry Towel divisions were at 60% and 66% respectively during Q2 FY26.
Geographic Revenue Split
The US market currently accounts for 60-65% of core revenues. The company aims to reduce this US exposure to below 50% over the next two years by expanding into 38 other jurisdictions. India-based brands (Himeya, Atmosphere, Liv) are demonstrating consistent YoY growth.
Profitability Margins
Reported PAT margin improved from 2.7% (INR 76 Cr) in FY24 to 3.9% (INR 113 Cr) in FY25. However, operating margins are expected to decline by 2-3% in FY26 from the 20.4% recorded in FY25 due to tariff impacts and reduced operating leverage.
EBITDA Margin
EBITDA margin stood at 20.4% in FY25 but corrected to 18.4% in Q1 FY26. This contraction of approximately 200 basis points is primarily due to the 50% US tariff hike on Indian textile exports, which forces the company to absorb costs to remain competitive.
Capital Expenditure
The company undertook a sizeable historical capex of INR 1,950 Cr between FY2016 and FY2020 to expand sheeting capacity and install spinning and terry towel units. No major new capex is planned for the immediate term as the focus shifts to deleveraging.
Credit Rating & Borrowing
CRISIL reaffirmed ratings at 'BBB+/Stable/A2'. Interest coverage is expected to decline to 1.5-1.6 times in FY26 from 1.8 times in FY25. The company is raising INR 500 Cr via Non-Convertible Debentures (NCDs) on a private placement basis to refinance existing debt.
Operational Drivers
Raw Materials
The primary raw material is cotton, including fine-count cotton yarn. Cotton prices have stabilized recently, which helped maintain a 20.4% EBITDA margin in FY25 before the tariff hikes.
Import Sources
The company imports a significant amount of cotton from the US for its export products. This specific US-sourced cotton is exempted from certain tariffs when re-exported to the US.
Capacity Expansion
Current installed capacity includes 61 million meters per annum (mmpa) for sheeting and 211,584 spindles for spinning. Utilization for Spinning is at 99%, Sheeting at 60%, and Terry Towels at 66%.
Raw Material Costs
Raw material prices are currently stable. However, gross margins are expected to decline in FY26 as the company absorbs the 50% US tariff hike, effectively increasing the landed cost of goods for customers or reducing the net realization for Himatsingka.
Manufacturing Efficiency
Vertical integration from spinning to distribution provides strong operating efficiency. The spinning unit's 99% utilization indicates high efficiency in internal yarn supply for the sheeting and towel divisions.
Logistics & Distribution
The company operates a global distribution network across North America, Europe, and Asia, supporting its 8 global brands and servicing 38 jurisdictions.
Strategic Growth
Expected Growth Rate
10-15%
Growth Strategy
The company is pursuing a 'Non-US' growth strategy to bring US revenue below 50% by expanding in 38 jurisdictions. It is also scaling its domestic India presence through brands like Himeya and Atmosphere. Financial growth will be supported by deleveraging using QIP proceeds (INR 400 Cr raised, INR 267.4 Cr repaid) and refinancing debt through a new INR 500 Cr NCD issue.
Products & Services
Bedsheets, terry towels, bedding products, drapery, upholstery fabrics, and fine-count cotton yarn.
Brand Portfolio
Himeya, Atmosphere, Liv, and 5 other global licensed/owned brands (total 8 global brands).
New Products/Services
Focusing on the luxury segment where demand is more inelastic, which helps protect margins despite inflationary pressures in the US market.
Market Expansion
Targeting non-US jurisdictions and the Indian domestic market to offset the decline in US sales. The India business is currently demonstrating consistent YoY growth.
Market Share & Ranking
Himatsingka is among the top five home textile players in India.
Strategic Alliances
The company maintains access to large global retailers including Costco, Macy’s, and Walmart for distribution.
External Factors
Industry Trends
Global trade in goods rebounded by 2.4% in 2024. The home textile industry is seeing a shift toward vertical integration and brand-led growth, though it remains highly sensitive to raw material (cotton) price cycles.
Competitive Landscape
Competes with other Indian textile majors and international suppliers from Pakistan and China. Pakistan holds a significant advantage with only a 19% tariff in the US market.
Competitive Moat
The moat is built on vertical integration (spinning to retail), a portfolio of 8 global brands, and long-standing relationships with major US retailers. This integration allows for better quality control and margin retention compared to non-integrated players.
Macro Economic Sensitivity
High sensitivity to US inflation, which reduces discretionary spending on home textiles, and US trade policy (tariffs).
Consumer Behavior
Shift toward luxury and branded home textiles in the Indian domestic market is a key trend the company is capitalizing on through its three domestic brands.
Geopolitical Risks
Trade barriers, specifically the 50% tariff on Indian textile exports to the US, represent a major geopolitical and regulatory risk that directly impacts competitiveness against other Asian nations.
Regulatory & Governance
Industry Regulations
Operations are subject to US import tariffs (currently 50% for Indian textiles) and SEBI regulations regarding insider trading and disclosure (trading windows were closed in late 2025 for board meetings).
Risk Analysis
Key Uncertainties
The primary uncertainty is the duration of the high US tariffs. If they remain at 50%, operating income is expected to decline by 10-15% and debt protection metrics will continue to deteriorate.
Geographic Concentration Risk
High concentration in the US (60-65% of revenue).
Third Party Dependencies
High dependency on big-box retailers (Costco, Walmart, Macy's) for market access.
Technology Obsolescence Risk
Not a primary risk, but the company maintains world-class manufacturing facilities with 211,584 spindles to stay competitive.
Credit & Counterparty Risk
Receivables have stretched to 155 days, indicating potential pressure on collections or extended credit terms offered to maintain sales volumes amid high tariffs.