NITINSPIN - Nitin Spinners
📢 Recent Corporate Announcements
Nitin Spinners has issued a postal ballot notice to seek shareholder approval for increasing its borrowing limit to ₹3,000 Crores. This special resolution will supersede the previous limit set during the Annual General Meeting in September 2024. The company is also seeking authorization to create security or mortgages on its assets to secure these potential borrowings. The e-voting process for shareholders is scheduled to conclude on March 13, 2026.
- Proposed increase in aggregate borrowing limit to ₹3,000 Crores in INR or foreign currency.
- Authorization to create charges or mortgages on movable and immovable properties up to ₹3,000 Crores.
- The new limits will supersede the previous resolutions passed on September 16, 2024.
- Remote e-voting period is set from February 12, 2026, to March 13, 2026.
- Cut-off date for eligibility to vote is February 6, 2026.
Nitin Spinners reported a recovery in Q3 FY26 with PAT rising 27.7% sequentially to ₹44.41 crore, supported by 98% capacity utilization in spinning. The company announced a major ₹230 crore investment in a 41.1 MW captive solar project, expected to save ₹51 crore in annual power costs by Q2 FY27. Management expressed optimism regarding demand recovery following U.S. tariff reductions and potential EU trade deals. The company is also progressing with a weaving expansion that will double capacity and integrate yarn dyeing and processing.
- Revenue for Q3 FY26 stood at ₹800.68 crore, up 5.3% QoQ, with EBITDA margins improving to 13.93%.
- Approved ₹230 crore capex for 41.1 MW AC captive solar power to achieve ₹51 crore in annual cost savings.
- Spinning capacity utilization remains high at 98%, while woven fabric utilization reached 90%.
- Total renewable energy footprint to reach 40-45% of consumption (21 crore units/year) post-capex.
- U.S. tariff reductions expected to revive demand for the 10-14% of business previously impacted by trade hurdles.
Nitin Spinners Limited has released the audio recording of its Analyst/Investor Call held on February 3, 2026. The call focused on the company's operational and financial performance for the third quarter and nine-month period ending December 31, 2025. This disclosure is part of the mandatory compliance under Regulation 30 of SEBI (LODR) Regulations, 2015. Investors can access the recording via the company's website to understand management's commentary on the textile sector and company growth.
- Audio recording of the Q3 FY26 earnings call is now available for public access.
- The call was held on February 3, 2026, to discuss financial results for the period ending Dec 31, 2025.
- The recording link is hosted on the official company website under the investor section.
- Compliance maintained as per SEBI Listing Obligations and Disclosure Requirements.
Nitin Spinners reported a strong sequential recovery in Q3FY26, with revenue growing 5.3% QoQ to ₹800.7 crore and PAT rising 27.7% QoQ to ₹44.4 crore. While YoY figures were slightly lower, EBITDA margins improved by 83 bps sequentially to 13.93% due to stable demand and favorable cotton prices. The company is embarking on a massive ₹1,120 crore expansion to increase weaving capacity by 88% and spinning by 20% by FY27. Furthermore, a ₹230 crore investment in captive solar power is expected to cover 40-45% of total energy needs, significantly reducing operational costs.
- Revenue grew 5.3% QoQ to ₹800.7 crore, though it declined 4.5% on a YoY basis.
- PAT saw a sharp sequential increase of 27.7% to ₹44.4 crore with an EPS of ₹7.90.
- Announced a ₹1,120 crore capex to expand weaving capacity from 40 to 75 Mn Mtrs/pa and spinning by 22,400 MTPA.
- Investing ₹230 crore in 41 MW solar capacity to improve cost competitiveness and sustainability.
- Exports contributed 61% of total revenue, with management eyeing growth from potential EU and UK FTAs.
Nitin Spinners reported a strong sequential recovery in Q3 FY26, with Net Profit rising 27.6% to ₹44.41 crore compared to the previous quarter. While year-on-year revenue saw a slight decline of 4.5% to ₹800.68 crore, the company showed improved operational efficiency. A major strategic highlight is the board's approval for a ₹230 crore investment in solar power plants totaling approximately 41 MW (AC) capacity. This investment, funded through internal accruals and term loans, is expected to significantly reduce power costs and improve long-term margins.
- Revenue from operations stood at ₹800.68 crore, showing a 5.3% sequential growth over Q2 FY26.
- Net Profit (PAT) increased to ₹44.41 crore from ₹34.79 crore in the preceding quarter.
- Approved a ₹230 crore capex for solar power projects in Rajasthan to enhance energy self-sufficiency.
- Agreement executed with LNB Renewable Energy for a 33 MW (AC) solar plant at Jodhpur.
- Earnings Per Share (EPS) improved to ₹7.90 in Q3 FY26 from ₹6.19 in Q2 FY26.
Nitin Spinners reported a sequential recovery in Q3 FY26, with Net Profit growing 27.6% QoQ to ₹44.41 crore, although revenue saw a slight 4.5% decline on a YoY basis. A major highlight is the board's approval for a ₹230 crore investment in solar power plants with a total capacity of approximately 41 MW (AC) in Rajasthan. This strategic move is aimed at reducing power and fuel expenses, which accounted for ₹75.48 crore this quarter. The project will be funded through a combination of internal accruals and term loans, signaling a focus on long-term margin expansion through cost control.
- Revenue from operations stood at ₹800.68 crore, up 5.3% sequentially from ₹760.08 crore in Q2.
- Net Profit (PAT) increased to ₹44.41 crore in Q3 FY26 compared to ₹34.79 crore in the preceding quarter.
- Approved ₹230 crore capex for 33 MW and 8.05 MW solar projects to optimize power costs.
- Finance costs decreased to ₹16.96 crore from ₹20.66 crore in the same quarter last year.
- Quarterly EPS improved to ₹7.90 from ₹6.19 in Q2 FY26.
Nitin Spinners Limited has scheduled an investors' conference call for February 3, 2026, at 2:30 PM IST to discuss its financial performance for the third quarter of FY26. The call is being organized by SMIFS Limited and will feature the company's senior management. The discussion will focus on the Q3 results and the future business outlook. This interaction is a standard procedure following the quarterly earnings release to provide clarity to shareholders and analysts.
- Conference call scheduled for February 3, 2026, at 2:30 PM IST.
- Organized by SMIFS Limited for discussion on Q3FY26 results.
- Senior management will provide insights into the future business outlook.
- The meeting is conducted under Regulation 30 of SEBI (LODR) Regulations, 2015.
Nitin Spinners Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI Prohibition of Insider Trading Regulations. This closure is ahead of the upcoming board meeting to consider and approve the unaudited financial results for the quarter and nine months ending December 31, 2025. The window will remain closed for all designated persons and their immediate relatives until 48 hours after the results are made public. This is a standard regulatory procedure for listed companies in India.
- Trading window closure effective from January 1, 2026.
- Closure is related to the financial results for the quarter and nine months ending December 31, 2025.
- Window to reopen 48 hours after the official announcement of financial results.
- Applies to Directors, Designated Employees, and connected persons as per SEBI norms.
Nitin Spinners Ltd. will organize a plant visit for investors and analysts at its Hamirgarh and Bhanvria Kalan plants on December 16, 2025. The discussions will be based on publicly available information, and no unpublished price-sensitive information (UPSI) will be discussed. This event allows investors to gain firsthand insight into the company's operations. The announcement is made in compliance with Regulation 30(6) of SEBI Listing Obligations.
- Plant visit scheduled for December 16, 2025
- Visit to Hamirgarh (Distt. Bhilwara) plant
- Visit to Bhanvria Kalan (Chittorgarh) plant
- Company Code - 532698
Nitin Spinners Limited reported a Code of Conduct violation by a Designated Person, Mr. GHANSHYAM HEDA, who executed a contra trade in the company's shares. He bought 10 shares on 22.08.2025 and sold 5 shares on 19.09.2025, violating the six-month contra trade rule. The company issued a warning letter and levied a penalty of ₹2000. The company clarified that Mr. HEDA was not in possession of any Unpublished Price Sensitive Information (UPSI) and the trade was done outside the Trading Window Closure period.
- Mr. GHANSHYAM HEDA bought 10 shares on 22.08.2025.
- Mr. GHANSHYAM HEDA sold 5 shares on 19.09.2025.
- A penalty of ₹2000 was levied for the contra trade.
- Mr. GHANSHYAM HEDA was holding 510 shares before 22.08.2025.
Financial Performance
Revenue Growth by Segment
Total revenue for Q2 FY26 was INR 760.08 Cr, representing a degrowth of 7.59% YoY. H1 FY26 revenue stood at INR 1,553.40 Cr, down 4.43% YoY. While segment-specific growth percentages for yarn vs. fabric were not explicitly broken down for the quarter, the company noted that lower sales volumes overall led to the revenue decline.
Geographic Revenue Split
In Q2 FY26, exports contributed 61% of total revenue, while the domestic market accounted for 39%. For the full year FY25, export revenue share increased to 64% from 59% in FY24, reflecting a strategic shift toward international markets to mitigate domestic demand fluctuations.
Profitability Margins
Net profit margin for FY25 was 5.31%, up from 4.53% in FY24. However, Q2 FY26 PAT fell to INR 34.78 Cr, a 17.50% YoY decline. Operating profit margin for FY25 was 14.37%, driven by full capacity utilization and stable raw material prices during that period.
EBITDA Margin
EBITDA margin for Q2 FY26 was 13.10%, a decrease of 90 bps from 14.00% in Q2 FY25. EBITDA for the quarter was INR 99.56 Cr, down 13.54% YoY. The margin compression was primarily attributed to lower sales volumes and competitive pricing pressures in the textile segment.
Capital Expenditure
The company is executing a large-scale brown-field expansion project with a revenue potential of approximately INR 400 Cr. Total bank facilities were enhanced to INR 2,375.62 Cr in July 2025 to support these capital requirements and working capital needs for the expanded scale.
Credit Rating & Borrowing
CARE Ratings reaffirmed the long-term rating at 'CARE A' but revised the outlook from 'Stable' to 'Positive' in July 2025. Short-term facilities are rated 'CARE A1'. The company maintains a prudent debt-to-equity ratio of 0.53 as of September 2025, down from 0.62 in March 2025.
Operational Drivers
Raw Materials
Cotton (including BCI, organic, and regenagri cotton) and recycled cotton/polyester. Sustainable fibers now constitute approximately 43% of the product line.
Import Sources
Primarily sourced from India (proximity to raw material sources mentioned), with specific high-end cotton like Supima sourced to meet international brand requirements.
Key Suppliers
Not specifically named in the documents, but the company manages procurement through a diversified base of cotton ginners and fiber suppliers to mitigate supply chain risks.
Capacity Expansion
Current spinning capacity utilization is over 95%, and woven fabric capacity is at nearly 90%. The ongoing expansion project is expected to add INR 400 Cr to the top line upon completion and stabilization.
Raw Material Costs
Raw material costs are a significant portion of the cost structure; stable prices in FY25 helped improve operating margins to 14.37%. The company uses a product mix optimization strategy to manage the impact of cotton price volatility.
Manufacturing Efficiency
Spinning capacity utilization remains high at >95%, while woven fabric utilization is at 90%. The inventory turnover ratio improved to 5.64 in FY25 from 5.50 in FY24, indicating better asset efficiency.
Logistics & Distribution
Not disclosed as a specific percentage of revenue, but the company's export-heavy model (61%) makes it sensitive to international freight rates and shipping container availability.
Strategic Growth
Expected Growth Rate
13-15%
Growth Strategy
Growth will be achieved through a INR 400 Cr revenue-adding expansion project, focusing on value-added sustainable fibers (currently 43% of mix), and deepening relationships with global brands like H&M and Benetton. The company is targeting a return to previous year's sales levels in the near term despite H1 degrowth.
Products & Services
Cotton yarn, blended yarn, knitted fabrics, and woven fabrics.
Brand Portfolio
Supima (licensed/partnered for high-end cotton products).
New Products/Services
Expansion into sustainable and recycled fibers (BCI, organic, regenagri) which now make up 43% of the product line to align with global ESG trends.
Market Expansion
Presence in over 55-60 countries globally; the company is targeting new geographies to reduce concentration risk and capitalize on favorable trade agreements.
Market Share & Ranking
Not disclosed as a specific percentage, but recognized as a leading integrated textile mill in India with a growing global footprint.
Strategic Alliances
Maintains long-standing relationships with major global retailers including Benetton, H&M, and Marco Polo, which provide repeat orders and volume stability.
External Factors
Industry Trends
The industry is shifting toward sustainable sourcing; Nitin Spinners has positioned itself by making 43% of its products from sustainable fibers. The sector is currently facing a challenging demand environment, leading to the company's 7.59% revenue degrowth in Q2 FY26.
Competitive Landscape
Competes with other large-scale integrated textile mills in India and globally. Competitive advantage is derived from high capacity utilization (>90%) and a diversified product mix.
Competitive Moat
Moat is built on integrated operations (yarn to fabric), long-standing relationships with global brands, and a cost-efficient manufacturing base in India. Sustainability is maintained through continuous capacity expansion and technology upgrades.
Macro Economic Sensitivity
Highly sensitive to global economic cycles and consumer spending on apparel, as 61% of revenue is export-dependent.
Consumer Behavior
Shift toward eco-friendly and responsibly sourced apparel is driving the company's investment in organic and recycled cotton products.
Geopolitical Risks
Trade barriers and changes in international trade agreements could impact competitiveness in the 60+ countries where it operates.
Regulatory & Governance
Industry Regulations
Complies with textile manufacturing standards and environmental norms. The company also adheres to SEBI (Listing Obligations and Disclosure Requirements) and Insider Trading regulations.
Environmental Compliance
The company is focused on environmental sustainability through the use of sustainable fibers (43% of product line) and compliance with global standards like Oeko-Tex Standard 100.
Taxation Policy Impact
Effective tax rate is approximately 25.7% based on Q2 FY26 figures (INR 12.07 Cr tax on INR 46.85 Cr PBT).
Legal Contingencies
No specific pending court cases or values were disclosed in the provided summary documents.
Risk Analysis
Key Uncertainties
Raw material price volatility and global demand fluctuations are the primary risks. Implementation and saleability risk of the large-scale expansion project could impact debt coverage if returns are not as envisaged.
Geographic Concentration Risk
61% of revenue is concentrated in export markets, making the company vulnerable to global trade disruptions, though it is diversified across 55+ countries.
Third Party Dependencies
Dependency on global retail brands for volume; however, the company consistently works to expand its customer base to mitigate this.
Technology Obsolescence Risk
The company mitigates technology risk through strategic investments in advanced manufacturing technology and capacity building.
Credit & Counterparty Risk
Debtors' turnover ratio was 8.80 in FY25, down from 10.68 in FY24, indicating an increase in the average credit period due to challenging market conditions.