Cedaar Textile Ltd H1 FY26 – When Yarn Turns into Drama: Growth Threads, Audit Twists & Dyeing Margins
1. At a Glance
Cedaar Textile Ltd (CEDAAR) just gave the market a performance that’s as colourful as its mélange yarns — half impressive, half questionable, and fully dramatic. At a current price of ₹71.6, the company commands a market cap of ₹99.4 crore, sporting a modest P/E of 9.22, and a ROE of 27.8%. That’s a number any promoter would embroider on a T-shirt.
Sales for H1 FY26 clocked ₹81 crore versus ₹79 crore in H1 FY25, while PAT dropped to ₹3.82 crore from ₹5 crore – a 24.8% fall QoQ and a 24% haircut from the last half-year. But here’s the twist: despite that dip, ROCE remains at a decent 16.6%, showing operational muscles.
Debt-to-equity stands at 1.00 – so yes, they’re balancing between “expansion ambition” and “interest tension.” With 68.7% promoter holding (down by a whopping 31.3%), one could say — the promoters literally spun off some of their stake while spinning yarn.
And if that wasn’t enough masala, the boardroom had its own daily soap: auditors resigning, directors quitting, and the board admitting “inability to verify assets and inventory.” Even Ekta Kapoor would blush at this storyline.
2. Introduction
Let’s face it — the textile world has two kinds of companies: those who quietly weave profits, and those who weave stories. Cedaar Textile seems to be the second one lately.
Born in 2020, Cedaar aimed to dye the world sustainable with its cotton, polyester, and viscose yarns. In four years flat, it managed to grow sales to ₹211 crore, list on NSE Emerge, and attract investors with an “organic, recycled, sustainable” narrative — the corporate buzzword equivalent of “fit, active, vegan.”
But by FY26, the shine faded faster than a ₹99 T-shirt washed thrice. Sales stagnated, profits shrunk, and auditors started treating Cedaar’s inventory records like UFO sightings — “we can’t confirm its existence.”
Still, you can’t dismiss Cedaar entirely. The company’s diversification — from mélange to dyed yarn, IFR technical textiles, and fabrics — keeps it relevant. And even with compliance hiccups and board exits, the operational backbone (81 crore sales in H1) shows a spinning machine still working overtime.
So buckle up. This is not your usual balance-sheet bedtime story — it’s a full-fledged Bollywood textile thriller.
3. Business Model – WTF Do They Even Do?
Cedaar Textile is basically the guy at the gym who claims he does “functional fitness” — no one knows what that means, but it sounds impressive.
In reality, Cedaar manufactures and exports a wide range of yarns — raw white, mélange, solid top-dyed, and fancy grey yarns — made from cotton, polyester, acrylic, viscose, Tencel, and modal. If it can be spun, dyed, or blended, Cedaar’s probably tried it.
About 78.8% of its revenue comes from yarn, with 13.8% from dyed yarn, 2.2% from technical textiles, and 1.7% from fabrics. The rest? “Other products,” which in Indian SME language often means “stuff that sells.”
Their installed spinning capacity is 9,000 MTPA with a utilization of 64%, while dyeing operates at a sweaty 91%. Clearly, the dyeing machines are the overachievers of the family.
They sell both in India (45% dealers, 19% domestic direct) and abroad (36% exports). Bangladesh accounts for nearly 20% of revenue — so you could say Cedaar’s yarn travels more than most Indian tourists.
In short, Cedaar’s business model is a mix of sustainability marketing, aggressive capacity use, and chaos management — a perfect recipe for a small-cap entertainer.
4. Financials Overview
Half Yearly Results (Figures in ₹ Crores)
Metric
H1 FY26 (Sep 2025)
H1 FY25 (Sep 2024)
Previous Half (Mar 2025)
YoY %
QoQ %
Revenue
81
79
130
2.5%
-37.7%
EBITDA
7
14
17
-50%
-58.8%
PAT
3.82
5
7
-24%
-45%
EPS (₹)
2.75
5.33
7.30
-48.4%
-62.3%
Commentary: EBITDA and PAT collapsed harder than your WiFi during a Netflix stream. OPM crashed to 9% from 18%, showing that Cedaar’s cost control was as effective as a torn face mask.
Annualized EPS now stands at ₹11 (2.75 × 4), giving a P/E of around 6.5 — cheaper than most weekend pizzas, but riskier than betting on India’s next textile revival.
5. Valuation Discussion – Fair Value Range
Let’s play with the numbers, carefully:
P/E Method: Industry P/E = 19.4 Cedaar’s EPS (TTM) = ₹10.1 → Fair Value Range = ₹100 – ₹195 (based on 10×–19× EPS range).
EV/EBITDA Method: EV/EBITDA = 7.69 currently. Industry median ~10×. If Cedaar catches up: EBITDA (TTM) ₹24 crore × 10 = ₹240 crore EV → Market cap = ₹146 crore → Fair value per share ~₹105.
DCF-ish sanity check: Given 30% profit growth TTM, even with a 15% WACC and modest 6% perpetual growth, value floats between ₹90–₹120.
Conclusion: Fair Value Educational Range: ₹90 – ₹120. This fair value range is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
Where do we start? Cedaar’s boardroom has had more exits than a multiplex during an Aamir Khan monologue.
October 2025: Auditors Kapish Jain & Associates resigned — mid-season, without a twist ending.
November 2025: Board admitted “inability to verify assets and inventory,” plus non-compliance with AS17 and CSR. Translation: “We have numbers, but they’re playing hide and seek.”
Independent Director Resignation: Rajesh Bansal, the Non-Executive Independent Director, quit right after — perhaps to pursue a
