Lahoti Overseas Ltd Q2 FY26 – From Yarns to Megawatts: 2,423% Profit Surge Woven with Power Play and Cotton Drama
1. At a Glance
If a 2,423% quarterly profit jump doesn’t make you spit out your chai, nothing will. Lahoti Overseas Ltd — the Mumbai-based merchant exporter of yarns, textiles, and now… power — just turned its September 2025 quarter into a flex tape ad for “how to patch a sinking textile P&L.” From an ₹0.3 crore loss in Q2 FY25 to a ₹6.97 crore profit in Q2 FY26, Lahoti has reminded everyone that even in a fabric business, thread count matters less than profit count.
With a market cap of ₹154 crore, current price ₹52.8, and book value ₹71.7, the stock trades at just 0.73x book — the equivalent of buying luxury fabric at a street-market discount. P/E? A modest 8.83x, because apparently, undervaluation has become their aesthetic. The company’s ROCE of 10.9% and ROE of 6.73% won’t break any Wall Street records, but when profits grow 24 times in one quarter, even those ratios start looking like understatements.
While the export-dominated revenue mix (98%) continues to make Lahoti a “foreign income influencer,” the windmills and solar panels are quietly spinning rupees on the side. Cotton, carbon, and clean energy — who said diversification can’t be poetic?
2. Introduction
Textile exporters rarely get the limelight unless they mess up — delayed shipments, margin compression, or the infamous “China dumped the market again.” Lahoti Overseas Ltd, however, decided to thread its own narrative.
Incorporated in 1990, Lahoti built its name by selling cotton yarns and fabrics across borders, catering to markets like Bangladesh (64%) and Turkey (36%) — basically, the textile hubs that turn Indian cotton into global fashion. And just when the export markets started to play hardball with inflation and logistics tantrums, Lahoti spun up Plan B: power generation. Four windmills and one solar plant later, the company’s yarns now share balance sheet space with kilowatt hours.
This blend of cotton exports and renewable power makes Lahoti a unique hybrid — imagine a spinning mill that can literally power its own looms. Financially, it’s not a rocket ship yet, but the latest quarter’s performance has sent strong signals that the management has learned the art of weaving resilience.
So while the broader textile industry prays to the gods of demand recovery, Lahoti seems busy lighting up the grid — both figuratively and literally.
3. Business Model – WTF Do They Even Do?
At its core, Lahoti is still a merchant exporter. Think of it as the “middleman magician” — buying, selling, and spinning yarns across continents without always owning massive manufacturing infrastructure. But the twist? It actually does have a spinning and knitting setup.
The company runs:
50,000 spindles (~30 tons daily) on commission spinning
35 knitting machines
128 looms on job work, churning out around 2.5 million yards of fabric monthly
Their product basket is a cotton lover’s dream: Shankar-6, MCU 5, Bunny, J34 varieties of raw cotton, and yarns ranging from ring-spun, melange, dyed, bamboo, to recycled. They even have a sustainability line with BCI/Organic/GRS-certified yarns — so yes, your eco-conscious T-shirt could trace back to Lahoti’s export logs.
Then comes the renewable power side quest — four windmills (Rajasthan, MP, and Maharashtra) and a 2.5 MW solar power unit in Rajasthan. The electricity they produce offsets some of their operational costs and, in true Gujarati fashion, doubles as an income stream.
So what’s Lahoti really doing? They’re exporting cotton yarns, knitting profits, and generating solar-powered margin boosters. It’s not a fancy SaaS business — but it’s consistent, tangible, and increasingly efficient.
4. Financials Overview
Let’s stitch the numbers together. Lahoti’s Q2 FY26 (Sep 2025) results looked like this:
Metric
Latest Qtr (Sep’25)
Same Qtr Last Yr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue
₹108.8 Cr
₹157.2 Cr
₹85.9 Cr
-30.8%
+26.6%
EBITDA
₹0.83 Cr
₹1.04 Cr
-₹0.09 Cr
-20.2%
Turned Positive
PAT
₹6.97 Cr
-₹0.30 Cr
₹1.63 Cr
2,423%
+327%
EPS (₹)
2.39
-0.10
0.56
2,490%
+327%
Despite revenue taking a 30% YoY dip, profit exploded thanks to higher other income (₹8.24 Cr vs ₹2.16 Cr YoY) — possibly from currency gains, power generation, or investment returns.
