1. At a Glance – Blink and You’ll Miss It
Alstone Textiles (India) Ltd is currently trading at ₹0.20, proudly wearing a ₹125 Cr market cap badge while reporting zero operating sales and still managing to post ₹2.64 Cr quarterly profit. Sounds impressive? Wait till you see the source.
The company has ₹1,422 Cr of borrowings, negative ROCE (-0.09%), negative ROE (-0.31%), and promoter holding of 0%. Yes, zero. Zilch. Nada.
Yet, the stock has seen 5% upper circuits, thousands of shareholders, and a P/E of ~20 — all without an operating business worth naming. If curiosity was a stock, this would be it.
So what’s going on here? Is this a misunderstood turnaround? Or just accounting gymnastics wearing a textile company’s name? Let’s investigate — detective hat on. 🕵️♂️
2. Introduction – From Fabric Trader to Financial Acrobat
Alstone Textiles was incorporated in 1990, originally meant to trade fabrics — cotton, wool, silk, synthetics, hosiery, garments — the whole Raymond catalogue without Raymond’s balance sheet.
Fast forward to FY22–FY25, and the company:
- Stopped generating operating revenue
- Shifted to investment and lending-style activities
- Started reporting profits almost entirely from “Other Income”
- Issued massive bonus shares
- Diluted promoters down to zero
- Loaded the balance sheet with ₹1,400+ Cr of debt
At this point, calling it a textile company is like calling a food blogger a Michelin chef because he once boiled Maggi.
So if not textiles, what exactly is Alstone doing?
3. Business Model – WTF Do They Even Do?
Officially:
Trading in textiles + investment
activities + unsecured loans + third-party distribution.
Unofficially (as per numbers):
- No consistent textile revenue
- No meaningful trading income
- No disclosed lending book details
- No segment reporting clarity
What does exist?
- Investments
- Loans
- Other Income
In FY25 (TTM):
- Sales: ₹0
- Other Income: ₹7.89 Cr
- Net Profit: ₹6.35 Cr
So the “business model” is essentially:
Borrow large sums → invest somewhere → earn other income → show profit → repeat.
Is it legal? Yes.
Is it transparent? Debatable.
Is it a textile company anymore? Not even in spirit.
Would you explain this to a retail investor without using the word “risk”? Be honest.
4. Financials Overview – The Quarter That Makes No Sense
Quarterly Comparison Table (₹ Cr)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 0.00 | 0.00 | 0.00 | NA | NA |
| EBITDA | -0.09 | -0.21 | -0.72 | NA | NA |
| PAT | 2.64 | 0.06 | 1.50 | 4300% | 76% |
| EPS (₹) | ~0.00 | ~0.00 | ~0.00 | NA | NA |
Key observation:
Profit growth of 4300% on zero sales. This is not operational leverage — this is Other Income gymnastics.
Question for you:
👉 Would you value a company on P/E when E comes from “Other Income”?
