Addi Industries Ltd Q2 FY26 – The Garment Ghost That Turned into a Real Estate Whisperer (and Still Made ₹4.04 Cr!)
1. At a Glance
Addi Industries Ltd, once known for stitching T-shirts and frocks, is now better recognized for stitching real estate deals. The ₹123 crore market-cap wonder sits quietly at ₹114 a share, flaunting a P/E of 30.5 — not bad for a company with exactly ₹0 in quarterly sales. Yes, you read that right — zero sales, yet it reported a PAT of ₹0.76 crore in Q2 FY26, all courtesy of its interest income and rentals. Imagine earning crores by doing absolutely nothing productive — the dream, right?
Over the past year, Addi’s stock has jumped a massive 171%, making investors wonder — is this a sleeping beauty of diversification or a silent assassin of capital efficiency? ROE at 4.15% and ROCE at 5.51% suggest a mild pulse, but the Current Ratio of 60.5 hints that the balance sheet is on an intravenous fluid drip of cash and FDs. The company is debt-free, with promoters sitting on a comfy 74.3% stake, sipping chai as their “garment-turned-land” enterprise drifts through another financial year.
2. Introduction
Once upon a textile mill, Addi Industries stitched garments for the masses. Men’s T-shirts, kids’ sweatshirts, ladies’ kurtis — they had it all. Then one fine day, management looked at the balance sheet, sighed at the zero sales, and decided, “Let’s build flats instead.” And just like that, a textile tale turned into a real estate reincarnation.
Now Addi earns not by threads and needles but through interest, rent, and the occasional land sale. It’s like watching a tailor suddenly flip into a landlord — all while maintaining a stock P/E higher than some growth tech firms. The transformation from fabric to floor space is still unfolding, and it’s both confusing and entertaining for retail investors who opened the financials expecting shirt margins but found property deeds.
In FY22, the company officially altered its Memorandum of Association to step into the world of construction, property management, and infrastructure development. Ever since, it’s been executing sale deeds worth crores — the ₹15.29 crore sale in December 2021 and another ₹18 crore in June 2022 being prime examples of Addi’s “new-age manufacturing” — only this time, manufacturing real estate profits instead of T-shirts.
Who said old economy companies can’t reinvent themselves? Addi Industries just stitched together a real estate fairy tale using the leftover threads of its textile past.
3. Business Model – WTF Do They Even Do?
So what exactly does Addi Industries do now? The short answer: nothing consistent, but everything profitable.
Once a humble readymade garments player, Addi produced men’s and women’s apparel — T-shirts, kurtis, tops, salwar suits, and designer frocks. But with rising competition, vanishing margins, and perhaps too many unsold frocks, management diversified into real estate — because in India, when in doubt, sell land.
After tweaking its MoA, Addi can now:
Build and sell residential and commercial complexes
Manage properties and collect rent
Trade land parcels like someone flips NFTs
Set up infrastructure and tourism projects
Essentially, the company is now an investment-cum-real-estate-holding vehicle. Revenue from operations is nil, but interest income, rental receipts, and land sales keep the P&L from looking abandoned. It’s like a sleepy trust fund kid — living off passive income and refusing to work.
So yes, Addi’s business model today is part textile nostalgia, part real estate speculation, and mostly FD interest — a bizarre blend that somehow still manages to produce a ₹4 crore annual PAT.
4. Financials Overview
Quarterly Results (₹ in Crore)
Source table
Metric
Q2 FY26 (Sep 2025)
Q2 FY25 (Sep 2024)
Q1 FY26 (Jun 2025)
YoY %
QoQ %
Revenue
0.00
0.00
0.00
0.0%
0.0%
EBITDA
-0.37
-0.31
-0.29
(Loss widening)
-27.6%
PAT
0.76
0.81
0.84
-6.17%
-9.52%
EPS (₹)
0.70
0.75
0.78
-6.67%
-10.26%
The numbers are less of a business story and more of a finance meme. Zero sales, but profits from “other income.” The firm is practically a glorified corporate FD, clocking steady interest and rent every quarter. EPS for Q2 FY26 is ₹0.70, annualised EPS becomes ₹2.80, giving a P/E of roughly 40.7 on that — not cheap for a company whose OPM reads “N/A.”
Witty Note: Addi’s income statement looks like a monk’s diary — empty pages of effort but full of peaceful income from past karma (FDs and property).
5. Valuation Discussion – Fair Value Range (Educational Purposes Only)
Let’s see what Addi’s fair value could look like using three simple models.
Method 1: P/E-Based
Annualised EPS (₹3.74) × Peer P/E range (25x–35x) → Fair Value Range: ₹94–₹131 per share
Method 2: EV/EBITDA
EV = ₹85.6 crore EBITDA ≈ ₹5.5 crore (approx. back-calculated from PBT & other income) EV/EBITDA ≈ 15.5x (current multiple) If sector rerates to 12–18x → Fair
