1. At a Glance – Yeh Company Zinda Kaise Hui?
Suditi Industries Ltd is the kind of stock that gives auditors nightmares and Twitter finfluencers wet dreams. A company whose net worth was completely eroded, retail experiments were bleeding cash, and promoters were busy restructuring instead of selling clothes — suddenly reports ₹10.6 crore PAT, ROCE near 30%, and trades at a ₹285 crore market cap.
Current price around ₹66, 3-month return ~12%, 1-year return ~60%, but don’t get excited yet. This is not a clean FMCG compounder. This is a textile + licensed brands + turnaround cocktail with dilution, warrants, margin swings, and history of losses.
Latest quarterly results show:
- Sales still volatile
- Margins improving
- Debt almost gone
- Promoters active again (capital infusion mode)
So the big question: real business revival or just a financial makeover with good tailoring?
Let’s open the balance sheet wardrobe and check what’s inside.
2. Introduction – Once Bitten by Retail, Twice Shy
Suditi was incorporated in 1991, originally as a knitted hosiery fabric processor. For years, it did boring but necessary stuff — knitting, dyeing, printing, garmenting. Then came ambition.
The company decided it didn’t just want to stitch fabric — it wanted to stitch brands. So it tied up with celebrities (Anushka Sharma, Yuvraj Singh), acquired licensing rights (FIFA World Cup, NBA), and tried building a retail presence across India.
Result?
- High fixed costs
- Inventory pile-ups
- Retail losses
- Net worth wiped out
Between FY21–FY24, Suditi was basically running on hope, rights issues, and auditor patience.
Then management did something rare in Indian smallcaps: they admitted defeat. Retail was scaled down, cash burn reduced, manufacturing focus restored, and balance sheet surgery began.
FY25 is the first year where
this strategy shows actual numbers, not just management optimism.
3. Business Model – WTF Do They Even Do?
Suditi today is not one business — it’s four stitched together:
1) Textile Processing (B2B Backbone)
- Knitting capacity: ~2,000 tons annually
- Dyeing: ~12 tons per day
- Printing & finishing: full-service fabric processing
This is the boring but stable part. Low glamour, thin margins, but keeps machines running.
2) Garment Manufacturing
- ~6,000 pieces per day
- Men, women, kids knitted apparel
- Vapi (Gujarat) unit added capacity of 1.5 lakh+ pieces/month at peak
This is where margins improve — value addition beats fabric selling.
3) Licensed & In-house Brands
- NUSH (Anushka Sharma) – women’s western wear
- YWC / YouWeCan (Yuvraj Singh) – athleisure
- IndianInk – ethnic/fusion wear
- Riot – youth casuals
- NBA apparel (India license)
Licensing means no brand-building from scratch, but royalty + inventory risk remains.
4) Kidswear Pivot – Gini & Jony
Recent capital raise is aimed at scaling Gini & Jony into a serious kidswear retail brand. This is the current “hope trade”.
So yes, Suditi does many things — sometimes too many.
4. Financials Overview – The Table That Matters
Quarterly Comparison (₹ crore, consolidated)
| Metric | Latest Qtr (Dec-25) | YoY Qtr (Dec-24) | Prev Qtr (Sep-25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 22.38 | 23.99 | 39.30 | -6.7% | -43.1% |
| EBITDA | 2.72 | 1.67 | 3.71 | 63% | -26.7% |
| PAT | 1.33 | 1.20 | 3.23 | 11% | -58.8% |
| EPS (₹) | 0.34 | 0.47 | 0.81 | -27% | -58% |
