1. Opening Hook
Just when you thought the textile industry couldn’t get more unpredictable, the U.S. tariff drama turned the global yarn market into a K-serial plot—lots of suspense, no logic, and everyone crying. Yet, Nitin Spinners showed up with 95% spindle utilization and plans for ₹1,100 crore capex because why not expand when everyone else is panicking?
As theGuru Granth Sahibsays,“Chardi kala”—rise even in adversity.Enter: Nitin Spinners.
Stick around; the real entertainment begins once we hit the U.S.-tariff chaos and 10 million ghost spindles.
2. At a Glance
- Revenue down 8% YoY– Pricing fell faster than cotton in monsoon.
- EBITDA margin at 13.1%– Slight compression; blame cotton stubbornness.
- PAT down to ₹34.8 crore– U.S. tariffs and demand ghosting took a toll.
- Exports 61% of revenue– Domestic still the side hustle.
- Spinning utilization 95%– Machines working harder than analysts during results season.
- 10 million spindles dead industry-wide– Natural selection, textile edition.
3. Management’s Key Commentary (Quotes + Translations)
“Tariffs and uncertainties are impacting demand.”(Translation: The U.S. sneezed, and India’s yarn sector got pneumonia.)
“Cotton prices are elevated compared to international.”(Read: Indian cotton just refuses to chill.)
“Margins should normalize in 2–3 quarters.”(Appears in every call like a recurring festival offer 🎉)
“We don’t expect major impact from U.S. tariffs as exposure is limited.”(Meaning: Our direct U.S. business is tiny—thank God.)
“Nearly 10 million spindles have stopped in two years.”(Translation: Textile Hunger Games—only big players survive.)
“Green power to cut energy cost by 5%.”(Or: Sunlight will save margins now.)
“U.S. brands are running at very low inventories.”(They’re basically waiting for tariffs to end before ordering anything.)
“Fabric expansion will open U.K./EU opportunities.”(Translation: Taking our talents to London and
Berlin.)
“Acquisition only if meaningful; old spindleage not useful.”(We won’t adopt old, dying spindles out of sympathy.)
4. Numbers Decoded
Metric | Q2 FY26 Value | YoY Change | One-Line Analysis
---------------------------|----------------------|------------------|-----------------------------
Revenue | ₹760.1 cr | -8% | Prices dipped, volumes held.
EBITDA | ₹99.6 cr | - | Margin pinch but stable ops.
EBITDA Margin | 13.1% | -90 bps | Cotton vs yarn = mismatch.
PAT | ₹34.8 cr | -17% | Tariff impact real.
Exports Share | 61% | Flat | Global play intact.
Spindle Utilization | 95% | Stable | Peak efficiency flex.
Fabric Capacity Util. | ~90% | Slight dip | U.S. knit pullback hit it.
Capex Plan | ₹1,100 cr | — | Expansion mode ON.
Power Savings Expected | ~₹10–12 cr yearly | — | Solar says hello.5. Analyst Questions – Decoded
Q: When do spinning spreads normalize?A: “3–6 months.”(They’ve said this for 3–6 quarters 😏)
Q: Is U.S. tariff the only issue?A: No—geopolitics, cotton cycles,
