1. At a Glance – Blink and You’ll Miss the Profits
₹18.9 crore market cap. ₹26.4 share price. Trailing twelve-month EPS of ₹0.01.
Welcome to Indo Cotspin Ltd, a company where sales exist, machines run, carpets are woven, but profits behave like an endangered species.
Let’s start with the headline madness:
- P/E: 1,888x (yes, not a typo)
- TTM PAT: ₹0.01 crore
- Sales: ₹25 crore
- Operating Margin: 2.4%
- ROE: 5.39%
- Debt: ₹2.04 crore
- Promoter holding: 59.21% (steady as a rock, unmoved by reality)
The stock is down ~24% YoY, ~9% over 3 years, and still trades at 2.6x book value.
That’s not optimism — that’s faith.
Latest quarterly numbers (Q3 FY26):
- Revenue: ₹10.14 crore
- PAT: ₹0.01 crore
- QoQ profit drop: -80%
Question before we proceed:
👉 Is Indo Cotspin under-earning… or just under-performing professionally?
Let’s audit this thing properly.
2. Introduction – 1955 Se Textile, 2026 Mein Tension
Founded in 1955, Indo Cotspin Ltd has survived:
- License Raj
- Textile cycles
- China dumping
- GST
- Demonetisation
- COVID
- And now… low margins with high expectations
That alone deserves a slow clap.
The company operates in non-woven textiles — a niche that sounds modern, technical, and high-margin… until you look at the numbers.
Over the last decade:
- Sales CAGR (5Y): 21%
- Profit CAGR (5Y): 47%
- ROE (5Y avg): ~1%
- TTM profit growth: -97%
Yes, profits grew historically — but collapsed again recently. This is not a turnaround story. This is a “two steps forward, three steps sideways” story.
The company also:
- Issued 7:10 bonus shares in Aug 2024
- Increased authorised capital from ₹5 Cr → ₹10 Cr
- Launched a new subsidiary… in agricultural trading
Because obviously, when textile margins are thin, the solution is… agriculture.
Investor question you should already be asking:
👉 Is management building scale —
or just buying time?
3. Business Model – WTF Do They Even Do?
Indo Cotspin manufactures non-woven fabric products.
Non-woven ≠ cotton shirts ≠ fancy apparel.
These are utility textiles, used in:
- Carpets
- Geo-textiles
- Felts
- Industrial applications
- Exhibition flooring
- Infrastructure use cases
Product Basket:
- Non-woven fabrics
- Non-woven carpets
- Designer carpets
- Geo-textiles
- Tufted carpets
Manufacturing unit: Samalkha, Panipat — i.e., textile territory, not Instagram territory.
This business has three harsh realities:
- Low differentiation
- Price-sensitive customers
- Margins decided by raw material cycles
Which explains why:
- OPM rarely crosses 5%
- ROCE has been negative in multiple years
- Scale hasn’t translated into profitability
This is not a brand business.
This is not a moat business.
This is a “run fast to stay in the same place” business.
Question for you:
👉 In such a business, what matters more — volume or margin discipline?
4. Financials Overview – Quarter Ka Sach
(Unaudited Q3 results, quarter ended 31 Dec 2025)
Quarterly Comparison (₹ in Crores)
| Metric | Latest Qtr (Dec-25) | YoY Qtr (Dec-24) | Prev Qtr (Sep-25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 10.14 | 10.26 | 6.59 | -1.17% | +54% |
| EBITDA | 0.16 | 0.20 | 0.15 | -20% | +6.7% |
| PAT | 0.01 | 0.05 | 0.01 | -80% | Flat |
| EPS (₹) | 0.01 | 0.07 | 0.01 | -85% | Flat |
EPS Annualisation (Q3 Rule)
Average of Q1, Q2, Q3 EPS × 4
But when EPS is ₹0.01, annualisation is a
