SOMATEX - Soma Textiles
📢 Recent Corporate Announcements
The Supreme Court has directed the National Highways Authority of India (NHAI) to deposit 50% of an arbitration award totaling approximately ₹1,197.73 crore (including interest) in a case involving the promoter of Soma Textiles. The promoter, Roadway Solutions India Infra Limited, is permitted to withdraw this amount against a bank guarantee. While the total award relates to the Vadodara-Mumbai Expressway project, Soma Textiles itself is not a party to the litigation. The company has stated that this order has no direct material impact on its own financial or operational activities.
- NHAI ordered to deposit 50% of the aggregate award of ₹1,019.03 crore plus interest (totaling ₹1,197.73 crore) within eight weeks.
- The dispute arises from a 2021 Concession Agreement for the Vadodara–Mumbai Expressway Project (Packages VIII & IX).
- Promoter entity Roadway Solutions India Infra Limited can withdraw the 50% deposit subject to providing an irrevocable bank guarantee.
- The final hearing for the remaining 50% of the award is scheduled for July 14, 2026, before the Delhi High Court.
- Soma Textiles confirms it is not a party to the proceedings and expects no direct material impact on its financials.
Soma Textiles & Industries Limited reported a significant financial turnaround in Q3 FY2025-26, posting a net profit of ₹1.94 crore compared to a loss of ₹0.34 crore in the previous year's corresponding quarter. Revenue from operations surged to ₹28.01 crore from just ₹0.59 crore YoY, following a complete shift in business strategy. The company has officially transitioned from textile trading to highway construction as its sole business segment. This follows a change in management control to new promoters, Roadway Solutions India Infra Limited, who took over in late 2025.
- Revenue from operations grew exponentially to ₹2,801 lakhs in Q3 FY26 from ₹59 lakhs in Q3 FY25.
- Reported a Net Profit of ₹194 lakhs for the quarter versus a Net Loss of ₹34 lakhs in the same period last year.
- Company officially shifted its primary business segment from 'Textiles' to 'Highway Construction' effective Q3 FY26.
- New management took control led by Managing Director Ameel Harjinder Gadhoke following a promoter share sale.
- Total expenses rose to ₹2,776 lakhs, primarily driven by ₹2,231 lakhs in road work and site expenses.
Soma Textiles & Industries Limited has responded to a clarification sought by the National Stock Exchange regarding why its standalone and consolidated financial results for the quarter ended September 30, 2025, were identical. The company explained that its 40% stake in associate Soma Textile FZC is fully impaired as accumulated losses have exceeded the investment value. Following Ind AS 28, the company has stopped recognizing further losses from this associate, resulting in no variance between standalone and consolidated figures. Consolidated reporting will only diverge if the associate returns to profitability and covers previously unrecognized losses.
- NSE sought clarification on identical standalone and consolidated figures for the quarter ended September 30, 2025.
- Company holds a 40% stake in associate entity Soma Textile FZC, incorporated outside India.
- Investment in the associate is fully impaired as the share of losses exceeded the carrying amount of the investment.
- Company has discontinued recognizing further losses in accordance with Indian Accounting Standard (Ind AS) 28.
- Consolidated and standalone figures will remain identical until the associate generates profits exceeding unrecognized losses.
Soma Textiles & Industries Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by MUFG Intime India Private Limited, confirms that all security certificates received for dematerialization during the quarter ended December 31, 2025, were processed and cancelled. The registrar has updated the depository names in the register of members within the mandated timelines. This is a standard procedural filing required for all listed companies in India to ensure the integrity of shareholding records.
- Compliance certificate filed for the quarter ended December 31, 2025
- Issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited
- Confirms that securities received for dematerialization are listed on stock exchanges
- Verification and cancellation of physical certificates completed within prescribed timelines
Soma Textiles & Industries Limited has informed the exchanges that its trading window for dealing in company securities will be closed starting January 1, 2026. This closure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of Q3 financial results. The window will remain shut for all designated persons and insiders until 48 hours after the un-audited financial results for the quarter ended December 31, 2025, are made public. This is a standard regulatory procedure for listed companies in India.
- Trading window closure begins on Thursday, January 1, 2026.
- Closure is related to the un-audited financial results for the third quarter ended December 31, 2025.
- The window will reopen 48 hours after the official announcement of the financial results.
- Restriction applies to all Officers, Directors, and Designated Persons of the company.
Soma Textiles & Industries Limited has secured two major construction work orders totaling ₹343.95 crore from its holding company, Roadway Solutions India Infra Ltd. The first project, valued at ₹281.18 crore, involves building an expressway connector in Maharashtra with a 24-month completion target. The second project is a ₹62.77 crore contract for an eight-lane expressway in Gujarat to be executed within 12 months. These orders represent a significant business diversification and revenue pipeline for the company.
- Total order value of ₹343.95 crore across two separate infrastructure projects.
- Major contract worth ₹281.18 crore for the Jalna-Nanded Expressway connector in Maharashtra.
- Secondary contract worth ₹62.77 crore for an eight-lane expressway in Gujarat.
- Execution timelines range from 12 to 24 months for the respective projects.
- Contracts are awarded by the holding company which owns 56.68% of Soma Textiles.
Soma Textiles & Industries Limited announced the results of its postal ballot, with all resolutions passed on December 14, 2025. The resolutions were approved via remote e-voting, with 107 shareholders holding 27,202,031 shares participating. The results were scrutinized by Mr. Pravin Kumar Drolia, a Practicing Company Secretary. Ms Reena Prasad, Company Secretary, is authorized to declare the results by December 16, 2025.
- 107 shareholders holding 27202031 shares exercised their right through remote e-voting
- 16293 eligible members holding total 33033000 Equity Shares of Rs.10/- each to vote as on cut-off date i.e., 7th November, 2025
- Appointment of Mrs Sunita Gangadhar Jamkhande (DIN: 05161000) as non- executive Independent Director of the Company for a term of five consecutive years w.e.f 5th November, 2025 until 4th November, 2030
Soma Textiles & Industries Limited announced the results of its postal ballot, with all resolutions passed on December 14, 2025. The e-voting process, facilitated by CDSL, commenced on November 15, 2025, and concluded on December 14, 2025. Out of 16293 eligible members holding 3,30,33000 equity shares, 107 shareholders holding 27202031 shares exercised their right through remote e-voting. The resolutions included the appointment of independent directors and approval of material related party transactions.
- 107 shareholders holding 27202031 shares participated in e-voting.
- 16293 eligible members holding total 3,30,33000 equity shares were eligible to vote.
- E-voting period commenced on November 15, 2025 and concluded on December 14, 2025.
- The Scrutinizer's Report was submitted on December 15, 2025.
Financial Performance
Revenue Growth by Segment
Revenue from operations grew by 65.66% YoY to INR 9.49 Cr (948.75 lakhs) in FY25, primarily driven by the trading segment. Manufacturing revenue has dropped to 0% as the company stopped manufacturing operations and sold its plant and machinery.
Profitability Margins
Core operating margin (before exceptional items) was -13.87% in FY25, a significant decline from a positive margin in FY24. Net profit margin is highly skewed at 730.1% due to INR 69.60 Cr in exceptional income from asset sales.
EBITDA Margin
Operating profit before working capital changes was a loss of INR 70.94 Cr in FY25, compared to a loss of INR 27.15 Cr in FY24, representing a 161% increase in operating losses due to the cessation of manufacturing and high fixed costs relative to trading volume.
Capital Expenditure
Capital expenditure for FY25 was INR 2.75 Cr (275.15 lakhs), primarily related to the transition to trading activities, compared to INR 2.35 Cr in FY24.
Credit Rating & Borrowing
Current borrowings stood at INR 0.63 Cr (62.92 lakhs) as of March 31, 2025, up 139% from INR 0.26 Cr in FY24. Finance costs decreased by 67% YoY to INR 0.17 Cr (16.66 lakhs).
Operational Drivers
Raw Materials
Stock-in-trade (textile products) represents 98.3% of the total operational revenue, as the company has pivoted from manufacturing to trading.
Capacity Expansion
Current manufacturing capacity is 0 MTPA as the company has sold off all plant and machinery. No planned expansion of manufacturing is mentioned; the focus is entirely on trading operations.
Raw Material Costs
Purchases of stock-in-trade for FY25 were INR 9.33 Cr (932.60 lakhs), accounting for 98.3% of revenue from operations, reflecting a low-margin trading model.
Manufacturing Efficiency
Manufacturing efficiency is no longer applicable as operations have ceased; the company is now evaluated on trading turnover and inventory cycles.
Logistics & Distribution
Other expenses, which include distribution and administrative costs, rose 129% YoY to INR 4.46 Cr (445.70 lakhs) in FY25.
Strategic Growth
Growth Strategy
The company is transitioning from a manufacturing-based model to a trading-based model. Growth is expected to be achieved by leveraging the existing net worth of INR 157.84 Cr and cash balances to scale trading volumes in textile products and optimizing the cost structure after the sale of legacy manufacturing assets.
Products & Services
Trading of textile-related products and stock-in-trade.
Brand Portfolio
Soma Textiles
New Products/Services
New product launches are focused on expanded trading portfolios in the textile sector, though specific revenue contribution percentages are not disclosed.
Strategic Alliances
The company maintains a relationship with Soma Textiles FZC, an associate company, to which it has provided loans resulting in a foreign exchange gain of INR 1.12 Cr in FY25.
External Factors
Industry Trends
The textile industry is seeing a shift where legacy manufacturing units with high overheads are struggling, leading companies like Soma to pivot to asset-light trading models. The company's positioning is currently defensive, focusing on liquidity and debt clearance.
Competitive Landscape
Competes with other textile traders and organized wholesalers; the market is highly fragmented with low entry barriers for trading.
Competitive Moat
The company currently lacks a strong manufacturing moat. Its primary advantage is a strong liquidity position with a positive net worth of INR 157.84 Cr and minimal debt, providing a buffer for the business model transition.
Macro Economic Sensitivity
Highly sensitive to textile industry cycles and domestic demand for traded textile goods.
Regulatory & Governance
Industry Regulations
Subject to textile trading regulations and GST compliance; manufacturing-related pollution norms are no longer applicable.
Legal Contingencies
The company has disclosed the impact of pending litigations in Note 39 of the financial statements; however, the specific INR value of these contingencies is not provided in the summary.
Risk Analysis
Key Uncertainties
The primary risk is the 'Material Uncertainty Related to Going Concern' as identified by auditors, given the cessation of manufacturing and reliance on asset sales for profitability. This represents a 100% risk to the current business structure if trading operations do not become self-sustaining.
Third Party Dependencies
100% dependency on third-party manufacturers for all products sold under the trading model.
Technology Obsolescence Risk
Low risk for trading, but the company has already suffered from the obsolescence of its manufacturing plant, which led to its sale.
Credit & Counterparty Risk
Trade receivables stood at INR 1.31 Cr (130.56 lakhs) as of March 31, 2025, down from INR 0.17 Cr in the previous year, indicating a shift in credit terms for the trading business.