Alok Industries Ltd Q2FY26 | From ₹30,000 Crore Debt to ₹17 Stock: The Polyester Phoenix Still Trying to Fly

1. At a Glance

If ever there was a corporate soap opera with polyester threads, it’sAlok Industries Ltd— the textile company that went from ₹30,000 crore debt and bankruptcy headlines to being Reliance’s stepchild. Once the poster boy of leverage, Alok now limps forward under the shadow (and spreadsheets) ofReliance Industries Ltd (RIL).

InQ2FY26, the company reportedrevenue of ₹941 croreand anet loss of ₹162 crore, because even under RIL, profitability is as elusive as a dry towel in Mumbai monsoon. With anenterprise value of ₹34,437 croreand debt still towering at₹26,007 crore, Alok continues to be the textile world’s “too big to thread” story.

At₹17.3 per share, the stock trades near its 52-week low, down23% YoY, and thebook value is negative (-₹42)— proving that sometimes, fabric strength doesn’t translate to financial strength.

So, how does a company that makes bedsheets and polyester yarns owe more money than small nations’ GDPs? Let’s unravel the threads — pun intended.

2. Introduction – The Rise, Fall, and RIL-ification of Alok

Once upon a debt, Alok Industries was India’s textile king — weaving cotton, polyester, home textiles, and dreams of global domination. Then, between 2004–2013, someone at Alok read the “How to Expand Aggressively” chapter without flipping to the “How to Repay Loans” section.

By 2017, Alok owed banks over ₹30,000 crore and joined the infamous “Dirty Dozen” list of India’s top NCLT insolvency cases — sharing table space with legends like Bhushan Steel and Essar. But every distressed damsel needs a saviour, andReliance Industries Ltd, along withJM Financial ARC, stepped in during 2019, buying Alok for a measly ₹5,000 crore — about the price of one Reliance Retail mall.

Since then, the turnaround story has been less of a sprint and more of a long-distance yawn. Reliance’s polyester integration and retail tie-ups have brought stability, not profits. The factories run, the looms spin, but the balance sheet still reads like a horror novel written by an accountant.

Still, when RIL’s name is on the shareholder list, investors keep faith — because Mukesh Bhai doesn’t usually invest for charity. The real question: will this textile zombie ever return to life?

3. Business Model – WTF Do They Even Do?

Alok Industries is like a textile buffet — everything from yarn to towels to garments is on the menu. The company isvertically integrated— which means it spins, weaves, knits, and sells, sometimes all in the same day.

Segment Split (FY25):

• Polyester (61%)– The flagship segment producingchips, POY, FDY, DTY, PSF, and other tongue-twisting fibers. Basically, if it’s shiny and synthetic, Alok makes it.
• Apparel Fabrics (18%)– Woven, knitted, and embroidered fabrics — including safety textiles for industrial use.
• Home Textiles (12%)– Think bedsheets, towels, and anything your mom proudly buys from Reliance Trends.
• Cotton Yarn (9%)– Old-school spinning with a touch of nostalgia and heavy machinery.

The company exports17%of its production and sells83%domestically — mostly through RIL’s retail network. It also sources raw materials likePTAandMEGdirectly from Reliance’s petrochemical division under a long-term “offtake” agreement, meaning Alok gets steady supply and RIL gets steady offtake — a mutually dependent textile marriage.

So yes, Alok makes your bedsheets, your sportswear, and possibly your polyester Diwali outfit. But can it also make profits? That’s the cliffhanger.

4. Financials Overview

Annualized EPS= Negative territory.P/E