1. At a Glance – When Textiles Decide to Play Survivor 🧵
Maral Overseas Ltd is that mid-cap textile uncle who’s been around since 1991, survived quotas, China dumping, cotton price tantrums, and still shows up to work every quarter. Current market cap sits at ~₹188 crore with the stock chilling around ₹45, down ~45% over the last year. Not exactly a Diwali bonus story.
But here’s the twist: Q3 FY26 just delivered a PAT of ₹5.30 crore, up 155% YoY, with EPS at ₹1.28, after a long streak of quarterly losses that looked like a horror movie marathon. Quarterly revenue came in at ₹247 crore, basically flat YoY, because growth is optional in Indian textiles.
ROE is still negative (-20%), ROCE is a sleepy 1.89%, and debt stands tall at ₹393 crore, with interest coverage below 1. Promoters hold a chunky 75%, but have pledged 48% of it — which is basically the financial version of holding your breath underwater.
So is this a turnaround, or just one good quarter wearing makeup? Let’s find out.
2. Introduction – A Vertical Textile Jungle with Thin Margins 🌪️
Maral Overseas is part of the LNJ Bhilwara Group — a name that carries weight in Indian textiles. The company is vertically integrated, meaning it spins yarn, knits fabric, processes it, and finally stitches garments. From cotton yarn to sleepwear, everything happens in-house.
Sounds great on paper, right? Except textiles are a margin-starved, debt-hungry, capital-intensive business where one bad cotton cycle can nuke your profits faster than a market-wide panic.
FY23–FY25 were rough. Sales stagnated, margins collapsed, interest costs ballooned, and profits went negative. But in classic Indian mid-cap fashion, Maral decided to wake up in Q3 FY26 and say, “Bas, ab aur nahi.”
Question is — is this a structural recovery or just a lucky quarter helped by other income and cost control? And more importantly, can this company
ever earn its cost of capital?
3. Business Model – WTF Do They Even Do? 🏭
Imagine a cotton plant entering Maral’s factory and exiting as a T-shirt sold in Germany. That’s the business model.
What Maral Actually Makes:
- Cotton Yarn – ~50% of FY23 revenue
- Knitted & Processed Fabric – ~28%
- Garments – ~22%
They operate facilities in Noida and Khargone, with capacity spread across:
- Grey Yarn: ~19,100 MTPA
- Dyed Yarn: ~4,000 MTPA
- Knitted Fabric: ~6,500 MTPA
- Processed Fabric: ~7,200 MTPA
- Garments: ~72 lakh pieces/year
A big chunk of yarn and fabric is used internally, reducing dependency on outside suppliers — good for control, bad when volumes don’t scale.
Exports contribute ~42% of revenue, with Europe, Far East Asia, and North America as key markets. Tie-ups include German and US apparel brands — which sounds fancy, until you realise buyers in textiles negotiate like sabzi mandi customers.
So the model is solid, but pricing power is weak. And without pricing power, debt becomes the villain.
4. Financials Overview – One Good Quarter Doesn’t Make a Summer 📊
Quarterly Performance Table (₹ Crore)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 247.45 | 250.37 | 249.70 | -1.17% | -0.9% |
| EBITDA | 19.39 | 1.31 | 9.08 | 1380% | 113% |
| PAT | 5.30 | -10.56 | -2.78 | Turnaround | Turnaround |
| EPS (₹) | 1.28 | -2.54 | -0.67 | Turnaround | Turnaround |
Commentary:
This is a classic margin-led recovery, not a volume-led one.
