SHIVAMILLS - Shiva Mills
📢 Recent Corporate Announcements
Shiva Mills Limited reported a net loss of ₹70.97 lakhs for the quarter ended December 31, 2025, showing a narrowing of losses compared to the ₹146.97 lakhs loss in the same period last year. However, revenue from operations declined to ₹3,425.81 lakhs from ₹3,597.73 lakhs YoY, and the loss widened sequentially from ₹16.15 lakhs in Q2 FY26. For the nine-month period, revenue saw a significant drop of 20.2% to ₹10,226.27 lakhs. A positive note is the sharp reduction in finance costs, which fell to ₹8.03 lakhs from ₹26.25 lakhs YoY.
- Net loss for Q3 FY26 narrowed to ₹70.97 lakhs from ₹146.97 lakhs in Q3 FY25.
- Revenue from operations for the quarter decreased by 4.7% YoY to ₹3,425.81 lakhs.
- Nine-month revenue fell significantly to ₹10,226.27 lakhs from ₹12,826.65 lakhs in the previous year.
- Finance costs for the quarter dropped by 69% YoY to ₹8.03 lakhs.
- Basic and Diluted EPS remained negative at ₹(0.82) for the quarter.
Shiva Mills Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, for the period ending December 31, 2025. The document, provided by MUFG Intime India Private Limited, confirms that share dematerialization requests were processed and listed on exchanges. It also verifies that physical certificates were mutilated and cancelled as per regulatory standards. This is a standard administrative update ensuring the integrity of the company's shareholding records.
- Compliance certificate for the quarter ended December 31, 2025, submitted to stock exchanges.
- Registrar MUFG Intime India confirms all demat requests were processed within prescribed timelines.
- Physical security certificates were mutilated and cancelled after due verification by the depository participant.
- Confirms depository names were substituted in the register of members as the registered owners.
Shiva Mills Limited has announced the closure of its trading window for all Directors and Designated Persons starting January 1, 2026. This move is a standard regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the company's Q3 financial results. The window will remain closed until 48 hours after the declaration of the Unaudited Financial Results for the quarter ending December 31, 2025. The specific date for the Board Meeting to approve these results will be communicated at a later date.
- Trading window closure begins on January 1, 2026, for the quarter ending December 31, 2025.
- Restriction applies to Directors, Designated Persons, and their immediate relatives.
- Window will reopen 48 hours after the announcement of the Unaudited Financial Results.
- The Board Meeting date for result declaration is yet to be finalized and announced.
Financial Performance
Revenue Growth by Segment
The company operates in a single segment, Textile Business. Total income for H1 FY26 was INR 68.33 Cr, representing a 26.18% decline compared to INR 92.56 Cr in H1 FY25. This decline is attributed to diminished downstream demand in the textile sector.
Profitability Margins
Net Profit Margin for FY25 was -2.26% compared to -2.06% in FY24. Operating Profit Margin for FY25 was -1.79% compared to -2.02% in FY24. The company has reported net losses for the past three financial years ended FY25.
EBITDA Margin
Operating Profit Margin stood at -1.79% in FY25, showing a slight improvement from -2.02% in FY24 despite the net loss, primarily due to cost control measures.
Capital Expenditure
Property, Plant and Equipment stood at INR 58.07 Cr as of September 30, 2025, down from INR 59.17 Cr as of March 31, 2025. Capital Work-in-Progress was reduced to Nil from INR 0.137 Cr in the same period, indicating minimal new expansion activity.
Credit Rating & Borrowing
In July 2025, CARE Ratings downgraded the long-term bank facilities (INR 27.50 Cr) from CARE BBB+; Negative to CARE BBB; Stable and short-term facilities (INR 12.50 Cr) from CARE A2 to CARE A3+ due to persistent net losses.
Operational Drivers
Raw Materials
Cotton and Yarn are the primary raw materials, with prices being highly volatile and significantly impacting the cost structure.
Capacity Expansion
Current installed capacity is not explicitly stated in MT, but the company operates a spinning unit and a windmill unit. Rating agencies indicate that reaching an operating income of over INR 300 Cr is a key sensitivity for a rating upgrade.
Raw Material Costs
Raw material costs are a major component of the textile business; volatility in cotton prices directly impacts margins as the company has limited ability to pass on costs during periods of diminished downstream demand.
Manufacturing Efficiency
The company employed 645 staff members as of March 31, 2025. Efficiency is driven by technological developments and maintaining harmonious industrial relations.
Strategic Growth
Growth Strategy
The company aims to achieve growth by striving for continuous quality improvement, keeping pace with technological developments, prioritizing customer requirements, and focusing on value maximization. Strategic focus is on creating new business opportunities within the textile segment.
Products & Services
Cotton Yarn and related textile products.
Brand Portfolio
Shiva Mills.
External Factors
Industry Trends
The textile industry is currently facing a period of diminished downstream demand, which has led to net losses for several players including Shiva Mills over the past three years.
Competitive Landscape
The company operates in a highly competitive and fragmented textile market with significant pressure from both domestic and international players.
Competitive Moat
The company's moat is built on the promoters' vast experience in the textile industry, a long track record of operations, a comfortable capital structure with low debt (Debt-Equity of 0.11), and the availability of captive power from windmills.
Macro Economic Sensitivity
Highly sensitive to global textile demand and domestic cotton production cycles.
Consumer Behavior
Shifts in global fashion demand and consumer spending on apparel directly affect the demand for the company's yarn products.
Regulatory & Governance
Industry Regulations
Operations are subject to textile manufacturing standards and environmental pollution norms.
Environmental Compliance
The company utilizes renewable energy through its windmill units, supporting ESG compliance and reducing carbon footprint.
Legal Contingencies
The company has pending litigations disclosed in Note 32 of the Financial Statements. A specific case, C.O.S.No. 11 / 2022 involving The Karur Vysya Bank Ltd, is mentioned in legal announcements.
Risk Analysis
Key Uncertainties
Volatility in cotton prices and the duration of the current demand slowdown in the textile sector are the primary business uncertainties.
Geographic Concentration Risk
Operations are concentrated in Coimbatore, Tamil Nadu, which is a major textile hub.
Third Party Dependencies
Dependent on cotton farmers and traders for raw material supply.
Technology Obsolescence Risk
The company actively invests in technological developments to mitigate the risk of obsolescence in spinning machinery.
Credit & Counterparty Risk
Debtors Turnover Ratio was 7.20 times in FY25, down from 9.20 times in FY24, indicating a potential stretch in the credit cycle with customers.