1. At a Glance – Blink and You’ll Miss It (But Don’t)
₹10 crore market cap. ₹29 stock price. A company that’s been around since 1992, quietly weaving yarns in Surat while the stock price went from single-digit chai money to a 270% one-year return rocket. Sounds exciting? Hold your loom.
Latest quarter (Dec 2025) shows sales of ₹6.73 Cr, down 36% YoY, and PAT of ₹0.11 Cr, down a painful 71% YoY. Yet the stock trades at a P/E of ~6×, EV/EBITDA of ~5×, and Price-to-Book of 0.55×. ROE suddenly looks hot at 21%, but zoom out and the 3-year ROE average is a sleepy ~4%.
Debt sits at ₹24.9 Cr, which is more than 2× the market cap. Interest coverage? A modest 1.6×—basically the financial equivalent of holding your breath underwater and hoping for the best.
So what’s going on here? Deep value? Cyclical pain? Or just another Surat textile special with solar panels on the roof? Let’s unravel the fabric thread by thread.
2. Introduction – Welcome to Surat, Where Textiles Never Sleep
Surbhi Industries Ltd (SIL) is not a startup, not a turnaround poster child, and definitely not a flashy ESG darling. It’s a classic Surat textile manufacturer—synthetic twisted yarn, knitted fabrics, embroidery work—serving garments, sarees, home furnishings, and even industrial textiles.
What makes it interesting is not what it does, but how unevenly it has done it over the years.
Revenue growth over the last decade? Basically flat.
Profit growth? Erratic, with occasional fireworks.
Stock price? Suddenly woke up like it had an alarm set for FY25.
The company also dabbles in solar and wind power, contributing ~4% of FY25 revenue combined. Not because it wants to be Tata Power—more because textile companies love rooftops and tax-efficient cash flows.
But here’s the real twist: despite weak long-term fundamentals, the stock trades below book value, promoters hold ~72%, and recent years show spurts of profitability. That’s the cocktail that attracts deep-value hunters, Twitter detectives, and “hidden gem” WhatsApp forwards.
Question is: is this a
misunderstood balance sheet, or just a volatile smallcap doing what volatile smallcaps do best?
3. Business Model – WTF Do They Even Do?
In simple terms: they buy polymer-based raw material, twist it into yarn, knit it into fabric, embroider it, and sell it. No D2C drama. No fashion runway. Just B2B textile grinding.
Core Products
- Synthetic twisted yarn
- Knitted fabrics
- Grey cloth & embroidery work
- Finished garment-related fabrics
End Uses
- Garments (mass-market stuff, not Milan Fashion Week)
- Sarees (yes, synthetics sell)
- Home furnishings
- Industrial textiles (low glamour, steady demand)
Manufacturing
- Single main facility in Surat, Gujarat
- ISO 9001, 14001, 45001 certified (quality, environment, safety—checkboxes ticked)
Group Structure
SIL is part of the Surbhi Group, with a related entity Surbhi Textile Mills Pvt Ltd. The listed company pays rent to this entity—₹1.32 lakh—a small but notable related-party transaction. Nothing alarming, but always worth keeping one eyebrow raised.
The business model is asset-heavy, working-capital intensive, and brutally cyclical. When demand is good, margins pop. When demand slows, profits evaporate faster than water on Surat roads in May.
Lazy question for you: Do textile companies ever truly escape cyclicality, or do they just rebrand it every decade?
4. Financials Overview – Numbers Don’t Lie, But They Do Smirk
📊 Quarterly Comparison (₹ Cr)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 6.73 | 10.58 | 8.87 | -36.4% | -24.1% |
| EBITDA | 1.17 | 1.16 | 1.73 | ~1% | -32.4% |
| PAT | 0.11 | 0.38 | 0.52 | -71.0% | -78.8% |
| EPS (₹) | 0.32 | 1.11 | 1.51 | -71.2% | -78.8% |
