1. Opening Hook
Just when global trade thought it had enough drama, U.S. tariffs walked back in like a forgotten ex.
Himatsingka Seide’s Q2 FY26 concall was less about silk sheets and more about geopolitics, currency luck, and survival skills.
Revenue dipped, margins sulked, but forex gains showed up like an unexpected Diwali bonus. Management insists things are “range-bound,” which is corporate code for “we’re managing, don’t panic yet.”
The U.S. continues to test patience with a 50% tariff hammer, while Himatsingka is busy diversifying, deleveraging, and diplomatically blaming macro factors.
This call wasn’t flashy, but it had layers—like a very expensive bedsheet.
Read on, because the real spice is in the numbers, the tariff math gymnastics, and the eternal hope of “next quarter will be better.”
2. At a Glance
- Revenue down 9.3% to ₹629 cr – Tariffs said hello, topline said goodbye.
- EBITDA margin down ~400 bps – Sharing is caring, especially tariff pain.
- Other income at ₹77.7 cr – Forex gains doing heavy lifting this quarter.
- Net debt at ₹2,436 cr – Lower YoY, still big enough to cause heartburn.
- Spinning utilization at 99% – At least one machine didn’t get the memo.
- US revenue at ~60% – Diversification goal stated, execution pending.
3. Management’s Key Commentary
“We’ve essentially had a range-bound quarter.”
(Translation: Nothing exploded, nothing thrilled. 😐)
“Revenue decline was primarily on account of the tariff overhang.”
(Blame the
U.S., again. 😏)
“The tariff continues at 50% as we speak.”
(Yes, it still hurts. Yes, we’re tired of saying this.)
“EBITDA margins slipped by about 400 basis points.”
(We paid customers so volumes wouldn’t ghost us.)
“The impact is absorbed four ways—us, retailer, consumer, and U.S. government.”
(Everyone bleeds a little, fairness policy activated.)
“Forex gains were about ₹66 crores due to rupee depreciation.”
(When operations fail, currency rescues. 💸)
“We aim to bring U.S. revenues below 50% over the next couple of years.”
(Strategic ambition unlocked, timeline flexible.)
4. Numbers Decoded
Metric Q2 FY26 Q2 FY25 What It Really Means
Revenue ₹629 cr ₹694 cr Tariffs took their cut
EBITDA Margin ~16% ~20% Margin generosity peak
Other Income ₹77.7 cr ₹6 cr Forex = MVP
Net Debt ₹2,436 cr ₹2,680 cr Slow deleveraging grind
Spinning Utilization 99% NA No excuse here
Sheeting Utilization 60% NA Demand still warming up
Terry Towel Utilization 66% NA Not