Shiva Texyarn Ltd Q3 FY26 – ₹76 Cr Revenue, 12% OPM, Defence Orders Pile-Up While Cotton Yarn Sulks

1. At a Glance

Shiva Texyarn Ltd is that old-school Coimbatore textile company which refuses to die, refuses to boom, and occasionally surprises everyone with defence orders. Founded in 1980, the company today sits at a ₹224 Cr market cap, trades at ₹173, and quietly runs one of India’s largest coating and lamination textile setups while the market keeps staring only at its cotton yarn business like an ex who can’t move on.

Latest quarter numbers?
Q3 FY26 revenue at ₹76.4 Cr, PAT at ₹1.65 Cr, OPM ~12%, and EPS ₹1.27. Not fireworks, but definitely not a textile funeral either.

Valuation-wise, the stock trades at P/E ~14.4, EV/EBITDA ~7.6, P/B ~1.58, and Debt-to-Equity ~0.73. Promoters sit comfortably at 74% holding with zero pledge, which is rare in small textile companies where pledging is usually a lifestyle choice.

Returns haven’t been kind recently (-22% 1Y), but here’s the twist: while cotton yarn volumes are shrinking, defence and technical textile orders are quietly stacking up. And yes, the company just bagged ₹36 Cr defence order from the Ministry of Defence.

So the big question: is Shiva Texyarn a boring spinning mill… or a misunderstood defence textile supplier wearing a lungi? Let’s find out.

2. Introduction

If you judge Shiva Texyarn only by its yarn sales, you’ll think the company is stuck in 2009, praying for cotton prices to behave and mills to revive. But that’s like judging a South Indian wedding only by the sambar.

The real story lies in technical textiles, coating, lamination, processing, and defence-grade garments. Over the last few years, cotton yarn contribution has steadily reduced, while value-added fabric, garments, and defence supplies have stepped in to save margins.

This is not a growth darling. This is a cyclical survivor with optionality.

Sales over the last 5 years are flat to negative, ROE has been patchy, and working capital cycles look like a horror movie. Yet, despite all this, Shiva Texyarn keeps winning repeat defence orders, maintains double-digit operating margins, and survives brutal textile downcycles without promoter dilution.

So ask yourself:
Do you want a clean FMCG-style compounder?
Or do you want a messy but interesting smallcap where defence orders act like oxygen cylinders during industry downturns?

Let’s break this textile thali item by item.

3. Business Model – WTF Do They Even Do?

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