Salona Cotspin Limited (SALONA)
₹268.35 +1.40% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Salona Cotspin's revenue was ₹197 Cr, and net profit ₹2.3 Cr (-58.1% year on year); the operating margin was 5.4%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹197 | — | +78.0% |
| Operating profit | ₹10.7 | +10.5% | +32.2% |
| Net profit | ₹2.3 | -58.1% | from loss |
| EPS (₹) | 4.29 | -65.8% | from loss |
| Operating margin | 5.4% | — | — |
SALONA delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 94.74% of the SALONA shares traded on NSE were taken to delivery, against the stock's own 20-session average of 74.53%. That is higher than usual for this stock. Turnover was under ₹1 lakh, so a handful of trades can move this figure. Volume was 0.1 times its average, well below normal.
Delivery in the last 5 sessions: 75.6% · 82.1% · 89.5% · 61.2% · 94.7%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Salona Cotspin Limited submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate, confirmed by Registrar and Share Transfer Agent MUFG Intime India Private Limited, verifies that securities received for dematerialization were processed, mutilated, and cancelled within 15 days of receipt. This filing is a standard regulatory submission with no impact on the company's operational or financial metrics.
- Compliance certificate filed under Regulation 74(5) for the quarter ended September 30, 2026
- Confirmation provided by Registrar and Share Transfer Agent MUFG Intime India Private Limited on October 03, 2026
- Securities received for dematerialization processed and records updated within 15 days
Salona Cotspin Limited announced the voting results of its 32nd Annual General Meeting held on September 23, 2026. Shareholders approved all 9 resolutions with overwhelming majorities (>96% in favor). Key outcomes include the approval of a final dividend of Rs 0.60 per equity share, the redesignation of Mr. Manoj Kumar Jhajharia as Managing Director, and the shift of Mr. Shyam Lal Agarwala from CMD to Executive Chairman. Additionally, related-party transactions with Shristi Cotspinn Private Limited were approved.
- Final dividend of Rs 0.60 per equity share approved with 99.99% votes in favor
- Manoj Kumar Jhajharia appointed as Managing Director with 2,66,765 votes in favor (99.99%)
- Shyam Lal Agarwala redesignated from CMD to Executive Chairman (Non-Independent)
- Related-party transactions with Shristi Cotspinn Private Limited approved with 99.99% votes
- Ramasamy M Shanmugam appointed as Independent Director for a 2-year consecutive term
Salona Cotspin Limited has announced the closure of its trading window for designated persons and their immediate relatives starting October 1, 2026. The closure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, for the quarter and half-year ending September 30, 2026. The window will remain closed until 48 hours after the declaration of the unaudited financial results. The exact date of the board meeting to consider the results will be intimated in due course.
- Trading window closes effective October 1, 2026
- Closure applies for financial results for the quarter and half-year ending September 30, 2026
- Trading window to re-open 48 hours after declaration of the unaudited financial results
- Board meeting date for approving results to be notified in due course
Salona Cotspin Limited has announced that its 32nd Annual General Meeting (AGM) will be held on Wednesday, September 23, 2026, at 11:00 AM IST via video conferencing. Pursuant to Regulation 36(1)(b) of the SEBI LODR Regulations, the company has sent letters with web-links to the FY2025-26 Annual Report to shareholders whose email addresses are not registered as of the cut-off date of August 14, 2026. The communication also reminds physical security holders to complete mandatory KYC updation pursuant to SEBI guidelines.
- 32nd Annual General Meeting scheduled for September 23, 2026, at 11:00 AM IST via Video Conferencing
- Communication sent to shareholders with unregistered emails based on the cut-off date of August 14, 2026
- Annual Report for FY2025-26 made accessible via company web-link and exchange portals
- Reminded physical shareholders to complete mandatory KYC updates under SEBI circular dated February 6, 2026
Salona Cotspin Limited has released its 32nd Annual Report for FY 2025-26 and convened its Annual General Meeting (AGM) for September 23, 2026. The Board has recommended a dividend of ₹0.60 per equity share for FY26, subject to shareholder approval. Key AGM agenda items include the appointment/redesignation of Manoj Kumar Jhajharia as Managing Director for 3 years from July 1, 2026, and adoption of audited FY26 accounts. Key financial metrics in the report reflect a Debt-to-Equity ratio of 2.26 and ROCE of 8.83% for FY26.
- Board recommended a dividend of ₹0.60 per equity share for FY 2025-26.
- 32nd AGM scheduled for September 23, 2026; e-voting cut-off date is September 16, 2026.
- Proposed reappointment of Manoj Kumar Jhajharia as Managing Director for 3 years (July 1, 2026 to June 30, 2029).
- FY26 financial ratios report Debt-to-Equity at 2.26 (vs 2.89 in FY25) and ROCE at 8.83% (vs 7.59% in FY25).
Salona Cotspin Limited has issued a corrigendum to its previous announcement regarding the 32nd Annual General Meeting (AGM). The company clarified that the Record Date was incorrectly stated as September 17, 2026, due to an inadvertent error. The correct Record Date is now fixed as September 16, 2026. The AGM is scheduled to take place on September 23, 2026.
- Corrected Record Date is September 16, 2026
- Original incorrectly stated Record Date was September 17, 2026
- 32nd Annual General Meeting scheduled for September 23, 2026
- Corrigendum issued on August 14, 2026, following the initial August 13, 2026 filing
Salona Cotspin has fixed September 17, 2026, as the record date for its upcoming dividend, pending shareholder approval at the AGM on September 23, 2026. The board also approved the unaudited financial results for the quarter ended June 30, 2026. Significant management changes were announced, including the transition of Mr. Raghav Agarwal to an Executive Director role and the appointment of Mr. Shanmugam R M as an Independent Director for a two-year term. Mr. Gaurav Jain will step down from the board on September 19, 2026, following the completion of his tenure.
- Record date for dividend eligibility set for September 17, 2026
- 32nd Annual General Meeting (AGM) scheduled for September 23, 2026
- Mr. Shanmugam R M appointed as Independent Director for a 2-year term starting August 13, 2026
- Mr. Gaurav Jain to demit office on September 19, 2026, due to tenure completion
- Debt-to-Equity ratio remains high at 2.29 based on latest available financial context
Salona Cotspin reported a significant decline in its Q1 FY27 performance, with revenue from operations falling to ₹45.47 crore from ₹102.99 crore in the same period last year. Net profit also saw a sharp contraction, dropping to ₹2.26 crore compared to ₹5.26 crore YoY, although it showed a slight improvement over the previous quarter's ₹2.02 crore. The company announced the appointment of Mr. Shanmugam R M as an Independent Director and the transition of Mr. Raghav Agarwal to an Executive role. The 32nd Annual General Meeting is scheduled for September 23, 2026, with a dividend record date set for September 17, 2026.
- Revenue from operations fell 55.8% YoY to ₹45.47 crore in the quarter ended June 30, 2026.
- Net profit decreased by 57% YoY to ₹2.26 crore from ₹5.26 crore in the year-ago period.
- Total expenditure for the quarter was reduced to ₹40.14 crore, down from ₹102.99 crore YoY.
- The company fixed September 17, 2026, as the record date for determining dividend eligibility.
- Mr. Shanmugam R M was appointed as an Additional Independent Director for a two-year term starting August 13, 2026.
Salona Cotspin has announced a board reshuffle, appointing Mr. Shanmugam R M as an Independent Director for a two-year term effective August 13, 2026. Concurrently, Mr. Gaurav Jain will demit his role as Independent Director on September 19, 2026, due to pre-occupation. The company has also scheduled its 32nd Annual General Meeting (AGM) for September 23, 2026, and fixed September 17, 2026, as the record date for dividend eligibility. Additionally, Mr. Raghav Agarwal has been re-categorized from a Non-Executive to an Executive Director role.
- Appointment of Mr. Shanmugam R M as Independent Director for a 2-year term starting August 13, 2026
- Record date for dividend eligibility fixed as September 17, 2026
- 32nd Annual General Meeting scheduled for September 23, 2026, via video conferencing
- Mr. Gaurav Jain to demit office on September 19, 2026, upon completion of his tenure
- Mr. Raghav Agarwal re-categorized from Non-Executive to Executive Director
Salona Cotspin Limited has announced a series of board changes, including the appointment of Mr. Shanmugam R M as an Independent Director for a 2-year term effective August 13, 2026. Mr. Gaurav Jain will cease to be an Independent Director on September 19, 2026, due to other commitments. The company has scheduled its 32nd Annual General Meeting for September 23, 2026, and fixed September 17, 2026, as the record date for dividend eligibility. Additionally, Mr. Raghav Agarwal has been recategorized from a Non-Executive to an Executive Director role.
- Appointment of Mr. Shanmugam R M as Independent Director for a fixed term of 2 years.
- Cessation of Mr. Gaurav Jain as Independent Director effective September 19, 2026.
- Record date for dividend eligibility established as September 17, 2026.
- 32nd Annual General Meeting to be held via video conferencing on September 23, 2026.
- Recategorization of Mr. Raghav Agarwal to Executive Non-Independent Director.
Salona Cotspin reported a 24.9% YoY increase in revenue to ₹45.47 crore for the quarter ended June 30, 2026. Net profit grew by 47.3% YoY to ₹2.26 crore, with EPS improving to ₹4.32 from ₹2.93. While the YoY performance shows recovery, the current annual revenue scale (~₹160 crore) remains significantly lower than the ₹190 crore reported in a single quarter in June 2024. The board has set September 17, 2026, as the record date for a dividend and announced management transitions, including moving Mr. Raghav Agarwal to an executive role.
- Revenue from operations increased 24.9% YoY to ₹45.47 crore from ₹36.41 crore.
- Net profit after tax rose 47.3% YoY to ₹2.26 crore compared to ₹1.53 crore in the previous year.
- Finance costs for the quarter stood at ₹2.49 crore, representing 5.5% of total revenue.
- Record date for the proposed dividend is fixed as September 17, 2026.
- Mr. Raghav Agarwal transitioned from Non-Executive to Executive Director effective August 13, 2026.
Salona Cotspin Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the period ended June 30, 2026. The filing confirms that all share certificates received for dematerialization were processed, mutilated, and cancelled within the mandated 15-day timeline. This is a standard administrative procedure verified by the company's Registrar and Share Transfer Agent (RTA), MUFG Intime India Private Limited. There is no impact on the company's financial performance or business operations.
- Compliance certificate issued for the quarter ended June 30, 2026
- Dematerialization requests processed and depository names substituted within 15 days of receipt
- Confirmation provided by RTA MUFG Intime India Private Limited (formerly Link Intime India)
- Verification covers all securities received from depository participants during the quarter
Salona Cotspin has announced a leadership transition effective July 01, 2026. Mr. Manoj Kumar Jhajharia, previously Joint MD, has been elevated to Managing Director for a five-year term. Mr. Shyam Lal Agarwala will transition from Chairman & MD to Chairman & Director. These appointments are subject to shareholder approval and come at a time when the company is managing a high debt-to-equity ratio of 2.29 and focusing on scaling its recently acquired spinning unit.
- Mr. Manoj Kumar Jhajharia appointed as Managing Director for a 5-year term from July 01, 2026, to June 30, 2031.
- Mr. Shyam Lal Agarwala re-designated from Chairman & MD to Chairman & Director effective July 01, 2026.
- M/s. P S G & Co. appointed as Internal Auditor for the financial year 2026-27.
- Company maintains a high debt level of Rs 190 Cr against a net worth of Rs 83 Cr as per latest financial context.
- Promoter holding remains stable at 68.42% as of March 2026.
Salona Cotspin has announced a leadership transition effective July 1, 2026, where Mr. Manoj Kumar Jhajharia will be elevated from Joint MD to Managing Director for a five-year term. Concurrently, Mr. Shyam Lal Agarwala will transition from Chairman & Managing Director to the role of Chairman & Director. The board also appointed M/s. P S G & Co. as internal auditors for FY 2026-27. This transition occurs as the company manages a high debt-to-equity ratio of 2.29 and seeks to scale its recently acquired spinning capacity.
- Mr. Manoj Kumar Jhajharia appointed as Managing Director for a 5-year term from July 01, 2026, to June 30, 2031.
- Mr. Shyam Lal Agarwala re-designated from CMD to Chairman & Director effective July 01, 2026.
- M/s. P S G & Co. appointed as Internal Auditors for the financial year 2026-27.
- Company maintains a high debt level of ₹190 Cr against a net worth of ₹83 Cr (D/E of 2.29).
- Promoter holding remains stable at 68.42% as of March 2026.
Salona Cotspin has announced a leadership transition, promoting Mr. Manoj Kumar Jhajharia to Managing Director for a five-year term effective July 1, 2026. The current Chairman & MD, Mr. Shyam Lal Agarwala, will transition to the role of Chairman & Director. Additionally, the board appointed M/s. P S G & Co. as Internal Auditors for FY 2026-27. These changes occur as the company manages a high debt-to-equity ratio of 2.29 and a modest ROCE of 8.0%.
- Mr. Manoj Kumar Jhajharia appointed as Managing Director for a 5-year term until June 30, 2031
- Mr. Shyam Lal Agarwala transitions from CMD to Chairman & Director effective July 1, 2026
- M/s. P S G & Co. appointed as Internal Auditors for the 2026-27 financial year
- Company reported June 2024 quarterly revenue of ₹190.01 cr and PAT of ₹2.27 cr
- Debt remains high at ₹190 cr against a net worth of ₹83 cr (D/E of 2.29)
Financial Performance
Revenue Growth by Segment
The company reported a TTM sales growth of -13%, a significant decline compared to the 5-year CAGR of 40% and 10-year CAGR of 20%. Quarterly sales for March 2024 stood at INR 166.40 Cr, down 20.3% from INR 208.88 Cr in September 2023.
Geographic Revenue Split
Not disclosed in available documents, though the company caters to both domestic and international markets from its manufacturing base in Erode, Tamil Nadu.
Profitability Margins
Operating Profit Margin (OPM) has seen a sharp decline from 12.68% in September 2022 to 4.01% in March 2024. Net profit growth for the TTM period is -81%, reflecting severe margin compression due to higher interest and operational costs.
EBITDA Margin
Operating profit for the quarter ended March 2024 was INR 6.68 Cr (4.01% margin), representing a 43% decrease from INR 11.74 Cr (12.68% margin) in September 2022.
Capital Expenditure
The company undertook a significant debt-funded acquisition of a spinning unit, which led to borrowings increasing from INR 40 Cr in March 2020 to INR 157 Cr by March 2023. This capex is intended to scale up manufacturing capacity for cotton yarn.
Credit Rating & Borrowing
CARE Ratings reaffirmed the long-term rating at 'CARE BBB' but revised the outlook to 'Negative' from 'Stable' on March 12, 2025. Short-term ratings were downgraded from 'CARE A3+' to 'CARE A3'. The revision is due to moderated interest coverage and debt protection metrics following the debt-funded capex.
Operational Drivers
Raw Materials
Cotton is the primary raw material, accounting for the majority of the cost of goods sold. Price fluctuations in domestic and imported cotton significantly impact the cost structure.
Import Sources
Not disclosed in available documents; however, the company utilizes both domestic and imported cotton.
Capacity Expansion
The company recently acquired a new spinning unit to expand its production of cotton yarn. While the unit has been acquired, it is yet to fully scale up operations as of March 2025.
Raw Material Costs
Raw material costs are highly sensitive to monsoon patterns as cotton cultivation in India is largely rain-fed. Violent changes in the cost structure of cotton directly affect the company's profitability margins.
Manufacturing Efficiency
The company is focused on consolidation strategies to improve productivity. Capacity utilization for the newly acquired spinning unit is a key monitorable for future efficiency.
Strategic Growth
Growth Strategy
Growth is pursued through the acquisition of additional spinning capacity and vertical integration into knitted fabrics and garments. The company aims to achieve growth by scaling the newly acquired unit and implementing cost-optimization strategies to recover margins.
Products & Services
Cotton yarn, knitted fabrics, and readymade garments.
Brand Portfolio
Salona
Market Expansion
The company is exploring new international and domestic markets to diversify its client base and mitigate the impact of localized economic slowdowns.
External Factors
Industry Trends
The textile industry is undergoing consolidation. Future growth is expected to be driven by capacity additions and efficiency improvements, though current liquidity is tight across the sector.
Competitive Landscape
The industry is characterized by high competition from both domestic players in Tamil Nadu and international manufacturers.
Competitive Moat
The company's moat is built on the vast experience of its promoters in the textile industry and its established 'Salona' brand name in the yarn and fabric market.
Macro Economic Sensitivity
Highly sensitive to the textile industry cycle and global economic conditions, which affect international trade and garment demand.
Consumer Behavior
Shifts in global fashion trends and demand for knitted garments affect the order book for the company's fabric and garment divisions.
Geopolitical Risks
International trade barriers and global economic impact from prolonged lockdowns or geopolitical tensions affect the export-oriented garment business.
Regulatory & Governance
Industry Regulations
Operations are subject to textile manufacturing standards and pollution norms in Tamil Nadu. The company must also comply with SEBI Listing Obligations and Disclosure Requirements (LODR).
Taxation Policy Impact
The company provides for current and deferred income tax; in FY20, it earned a post-tax profit of INR 117.35 Lakhs.
Legal Contingencies
There were no instances of non-compliance, penalties, or strictures imposed by Stock Exchanges or SEBI during the last three years (as of the 2020 report).
Risk Analysis
Key Uncertainties
The primary uncertainty is the ability to scale up the new spinning unit as envisaged. Failure to do so while loan repayments have commenced poses a liquidity risk.
Geographic Concentration Risk
Manufacturing is concentrated in Erode and Sathyamangalam, Tamil Nadu, making it sensitive to local power and labor regulations.
Third Party Dependencies
High dependency on cotton farmers and traders; supply is vulnerable to monsoon vagaries.
Technology Obsolescence Risk
The company is implementing consolidation and productivity improvements to mitigate the risk of falling behind more technologically advanced competitors.
Credit & Counterparty Risk
The company faces an elongated collection period, which increases credit risk and impacts the liquidity available for debt servicing.
