1. At a Glance
Lakhotia Polyesters just dropped a 97.84 lakh profit bomb in Q1 FY26—on a modest ₹1.7 crore topline. That’s like pulling a Ferrari engine out of a rickshaw. EPS of ₹0.93, OPM north of 75%, and still, stock tanks 5%. Small-cap logic: missing. Drama: maximum.
2. Introduction with Hook
If polyester yarns were in the Olympics, Lakhotia Polyesters would be that unknown underdog who suddenly wins gold while everyone was watching Nike. Founded in 1980, this company makes glitter, yarns, and confusion—because while the product is decorative, the financials are… spicy.
The last 3 years?
Revenue growth: 44% CAGR
Profit growth: 144% CAGR
TTM PAT up 1596%
And yet, market cap = ₹41 Cr. You’ve seen Instagram reels with more funding.
3. Business Model (WTF Do They Even Do?)
Let’s break it down:
“They basically make shiny stuff that makes other stuff shiny.”
More precisely:
- Lacquered metallized polyester films
- M-type, MX, MH yarns
- Transfer foil
- Glitter powder (yes, really)
End use? Textiles, fancy packaging, designer clothes, and Diwali decorations. So, while the business may look like a kindergarten art project, the margins lately are looking VC-worthy.
4. Financials Overview
Q1 FY26 Highlights
| Metric | Value |
|---|---|
| Revenue | ₹1.70 Cr |
| PAT | ₹0.98 Cr |
| EPS | ₹0.93 |
| OPM | 75.73% |
| Net Margin | 57.5% |
Yes, the numbers are small. But the margins are tighter than airport security. Operating margins over 75% is more fashion week than textile mill.
5. Valuation
Valuation Metrics:
- P/E: 5.75x
- Book Value: ₹14.6 → P/B: 2.7x
- Market Cap: ₹41 Cr
Let’s get ballpark:
- Earnings (TTM): ₹7.18 Cr
- Apply 8x conservative P/E → Fair Value = ₹56
- Aggressive 10x (given growth) → Fair Value = ₹71
Fair Value Range: ₹56–₹71
Cheap? Yes. Cheap for a reason? Possibly. But hey, glitter isn’t always gold—sometimes it’s just glitter.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 result: ₹98 lakh PAT on ₹1.7 Cr revenue. OPM? A bonkers 75.7%.
- Other income alert: ₹12 Cr included in TTM profits.
- Debt still exists: ₹15 Cr borrowings on ₹10 Cr equity.
- High Debtors: 184 days. Basically, they’re glittering, not collecting.
No concall needed—just interpret the financials like a suspense thriller.
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity Capital | ₹10.47 Cr |
| Reserves | ₹4.83 Cr |
| Borrowings | ₹15.03 Cr |
| Total Liabilities | ₹34.44 Cr |
| Net Worth | ₹15.3 Cr |
| Cash | Microscopic |
| Fixed Assets | ₹0.36 Cr |
Commentary:
Borrowings up. Assets up. Cash flatlined. This balance sheet walks a tightrope over a vat of glitter.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹-0.68 Cr | ₹0.78 Cr | ₹-0.11 Cr | ₹-0.01 Cr |
| FY24 | ₹0.36 Cr | ₹1.95 Cr | ₹-2.26 Cr | ₹0.05 Cr |
| FY25 | ₹-8.26 Cr | ₹0.01 Cr | ₹8.32 Cr | ₹0.06 Cr |
Cash flow is more dramatic than a reality show. One year, nothing. Next year, capital raise rescue. CFO going negative while profits rise? Classic “all accounting, no cash” story.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 38.6% |
| ROE | 49.9% |
| D/E | ~1.0x |
| Debtor Days | 184 |
| Inventory Days | 7 |
Verdict:
ROE looks straight out of Shark Tank pitch. But Debtor Days scream: “Bhai, paise de de.” Risky but spicy.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | PAT | OPM |
|---|---|---|---|
| FY23 | ₹14.08 Cr | ₹-1.92 Cr | -16% |
| FY24 | ₹27.74 Cr | ₹0.07 Cr | 0.6% |
| FY25 | ₹60.47 Cr | ₹6.02 Cr | -4.85%* |
| TTM | ₹61.13 Cr | ₹7.18 Cr | -3.16%* |
*OPM distorted by “Other Income” (₹12 Cr). Actual ops still a question mark.
11. Peer Comparison
| Company | CMP | P/E | ROE | PAT (TTM) | OPM |
|---|---|---|---|---|---|
| KPR Mill | ₹1243 | 53.2 | 17.0% | ₹797 Cr | 19.5% |
| Vardhman Textile | ₹492 | 16.7 | 9.3% | ₹852 Cr | 12.6% |
| Welspun Living | ₹141 | 21.4 | 13.7% | ₹639 Cr | 12.3% |
| Lakhotia Poly | ₹39 | 5.7 | 49.9% | ₹7.18 Cr | 3.7% (adj) |
Lakhotia: Like a local wrestler challenging WWE stars. Numbers shock, but scale lacks.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2023 | Jun 2025 |
|---|---|---|
| Promoters | 33.89% | 72.29% |
| Public | 66.11% | 27.71% |
| No. of Holders | 165 | 706 |
Promoter stake zoomed from 33% to 72% in just a few quarters. Either supreme confidence… or a corporate plot twist loading.
13. EduInvesting Verdict™
Lakhotia Polyesters is like that underrated indie film that wins awards but no box office. Financials look explosive—until you realise half the profit is glittery Other Income. Margins volatile, collections slow, and scale still tiny. But the growth? Eye-popping.
A risky shimmer in the polyester jungle. Could be a gem. Could be just… glitter.
Written by EduInvesting Team | 24 July 2025
Tags: Lakhotia Polyesters, Textiles, Smallcap, Glitter Business, EduInvesting Premium
