1. At a Glance – The “Fancy Yarn, Plain Returns” Story
Lambodhara Textiles Ltd is a ₹119 crore microcap that has been spinning fancy yarns since 1994 but somehow forgot to spin shareholder wealth with the same enthusiasm. At a current price of ₹115, the stock trades at 14.7x P/E, 0.97x book value, and a tempting-looking EV/EBITDA of ~5x. On paper, this looks like a classic value play. In reality, it’s more like that discount saree shop where designs are premium but fitting is average.
Q3 FY26 numbers show revenue of ₹59.1 crore (-2.9% YoY) and PAT of ₹2.4 crore (+57.9% YoY). Margins improved, profits bounced, and yet ROE remains stuck at 5.6%, which is barely beating a fixed deposit after tax. Add to this a 39.3% promoter pledge, and you start wondering whether the balance sheet is wearing designer fabric over a very basic inner lining.
So yes, Lambodhara looks cheap. But is it cheap because the market is blind… or because it’s seen this movie before?
2. Introduction – A 30-Year-Old Yarn with a Midlife Crisis
Lambodhara Textiles has been around for three decades. That’s enough time to build brands, scale capacity, dominate niches, and still complain about “industry headwinds” every year. The company operates in synthetic fancy yarns—slub, siro, neppy, multi-twist—the kind of yarns that sound premium and actually are, at least from a product standpoint.
But despite all this “fancy”, financial performance has been… let’s say modest. Over the last five years, sales CAGR is ~6%, while profit CAGR is negative. ROE has steadily drifted down from double digits to single digits, and the stock price has rewarded long-term shareholders with exactly nothing over 10 years. That’s not compounding—that’s cardio.
The company has tried to fix things: renewable power, solar plants, capacity expansion, even dabbling in real estate rentals and alternative investment funds. The intent is there. Execution? Still loading.
So the big question: is Lambodhara quietly preparing for a turnaround, or is it just adding more spindles to spin the same low-return story?
3. Business Model – WTF Do They
Even Do?
At its core, Lambodhara Textiles is a synthetic fancy yarn manufacturer. No fashion brands, no D2C drama, no influencer campaigns—just yarn. But not boring yarn. Fancy yarn.
The company manufactures:
- PSF & VSF yarns
- Blended yarns like PV and PC
- Value-added yarns: slub, neppy, siro, multi-twist
Counts range from 30s to 60s, and the focus is on customised niche requirements, mainly for weaving and knitting applications.
Capacity-wise:
- 37,856 spindles installed
- 33,224 spindles dedicated to fancy yarns
- Expansion underway for 9,984 additional spindles, taking total capacity to 60,704 spindles
To control costs, Lambodhara has gone semi-power-company mode:
- 3 windmills (4.75 MW)
- Solar power capacity of 4.3 MW (1 MW rooftop + 3.3 MW ground-mounted)
This covers up to 90% of normal power consumption, which is smart in a power-hungry textile business.
There’s also:
- A commercial rental complex in Coimbatore
- Land parcels earmarked for future real estate development
So yes, this is a yarn company… with side hustles. But the core cash still comes from textiles.
4. Financials Overview – Numbers That Behave, Not Explode
Quarterly Comparison (Q3 FY26 – Figures in ₹ Crore)
| Metric | Latest Qtr (Dec-25) | YoY Qtr (Dec-24) | Prev Qtr (Sep-25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 59.08 | 60.82 | 62.54 | -2.9% | -5.5% |
| EBITDA | 5.55 | 5.54 | 8.99 | ~0% | -38% |
| PAT | 2.40 | 1.52 | 3.32 | +57.9% | -27.7% |
| EPS (₹) | 2.31 | 1.46 | 3.20 | +58% | -27.8% |
Annualised EPS = Q3 average EPS × 4
Average EPS (Q1–Q3 FY26) ≈ (2.08 + 3.20 + 2.31) / 3 ≈ 2.53
Annualised EPS ≈ ₹10.1
Commentary:
