INDIANCARD - Indian CardCloth
📢 Recent Corporate Announcements
Indian Card Clothing reported a flat revenue of ₹9.39 crore for Q3 FY26 compared to ₹9.44 crore in the same quarter last year. The company posted a marginal net loss of ₹0.08 lakhs, a significant decline from the ₹4.90 crore profit in the previous quarter, primarily due to a 64% drop in other income. The 9-month profit of ₹7.82 crore is significantly lower than the previous year's ₹74.78 crore, which was heavily inflated by one-time gains from property sales. Management remains cautious, citing headwinds in the textile industry but expects a recovery within 9 to 12 months.
- Revenue from operations stood at ₹938.94 lakhs, showing a slight decline from ₹943.98 lakhs YoY.
- Net profit plummeted to a marginal loss of ₹0.08 lakhs from a profit of ₹489.61 lakhs in the preceding quarter.
- Other income decreased by 63.8% QoQ to ₹411.03 lakhs, significantly impacting the bottom line.
- 9-month FY26 net profit of ₹7.82 crore is down 89.5% compared to ₹74.78 crore in 9M FY25, which included ₹65.7 crore in exceptional gains.
- Management expects the textile industry to recover from global geopolitical headwinds in the next 9 to 12 months.
Indian Card Clothing Company Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by KFin Technologies Limited, confirms the processing of dematerialization requests for the quarter ended December 31, 2025. It verifies that physical share certificates were mutilated and cancelled after due verification. The names of the depositories were substituted in the company's records as the registered owners within the prescribed 15-day timeline.
- Compliance certificate issued for the quarter ended December 31, 2025.
- Registrar and Transfer Agent (RTA) KFin Technologies Limited confirmed the processing of securities.
- Dematerialization requests were completed and certificates mutilated within 15 days of receipt.
- The filing ensures the company is in compliance with SEBI's depository regulations.
Indian Card Clothing Company Limited has announced the closure of its trading window for insiders starting January 1, 2026. This mandatory regulatory step is taken ahead of the declaration of financial results for the quarter and nine months ending December 31, 2025. The window will remain closed until 48 hours after the results are made public. The specific date for the board meeting to approve these results will be communicated at a later time.
- Trading window closure begins at the start of working hours on January 1, 2026
- Closure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015
- Applies to the financial results for the quarter and nine months ended December 31, 2025
- Window will reopen 48 hours after the official declaration of financial results
Financial Performance
Revenue Growth by Segment
Consolidated Net Profit Before Tax fell 88.2% YoY to INR 949.87 Lakhs in H1 FY25 from INR 8,049.32 Lakhs in H1 FY24, primarily due to the absence of exceptional asset sale gains. The card clothing division previously reported an 11% YoY increase in operating income to INR 51.28 Cr in FY20.
Geographic Revenue Split
Higher exports were a key driver for an 11% YoY increase in operating income in FY20; specific regional percentage splits for H1 FY25 were not disclosed in the available documents.
Profitability Margins
Operating Profit Margin improved to 74.43% in FY25 from 64.78% in FY24. Net Profit Margin reached 255% in FY25 compared to 16.06% in FY24, heavily influenced by one-time profits from the sale of land and buildings.
EBITDA Margin
Operating Profit Margin increased by 9.65 percentage points YoY to 74.43% in FY25, driven by profit on asset sales and fair value gains on investments.
Credit Rating & Borrowing
Credit rating indicates a weak financial risk profile due to continued operating losses in the card clothing division. Interest paid in H1 FY25 was INR 64.15 Lakhs on a significantly reduced debt base (Debt-Equity ratio of 0.04).
Operational Drivers
Manufacturing Efficiency
Operating losses in the card clothing division were substantially reduced by lowering overheads that were previously not covered by sufficient revenues.
Strategic Growth
Growth Strategy
The company is executing a strategy of monetizing non-core real estate assets (INR 66.41 Cr profit in H1 FY24) and diversifying into financial services, evidenced by a INR 10 Cr equity investment in CFM Asset Reconstruction Private Limited (CFMARC) approved in October 2025.
Products & Services
Card clothing for textile spinning machinery.
Brand Portfolio
The Indian Card Clothing Company Limited.
Strategic Alliances
Equity investment of INR 10 Cr in CFM Asset Reconstruction Private Limited (CFMARC) to leverage opportunities in the asset reconstruction sector.
External Factors
Industry Trends
The card clothing industry is facing high overhead pressures; the company is responding by reducing employee costs and shifting focus toward exports, which grew 11% in FY20.
Competitive Moat
Niche expertise in card clothing manufacturing provides a specialized market position; however, sustainability depends on successful cost restructuring and diversification into financial investments.
Regulatory & Governance
Regulatory analysis not yet available for this company.
Risk Analysis
Key Uncertainties
Sustainability of net profits which were primarily driven by a 255% net profit margin in FY25 due to one-time asset sales (INR 66.41 Cr) rather than core manufacturing performance.
Credit & Counterparty Risk
Trade receivables increased to INR 1,045.32 Lakhs in H1 FY25 from INR 844.88 Lakhs in FY24, a 23.7% rise, indicating potential working capital pressure.