1. At a Glance
Ladies and gentlemen, welcome to the strangest stock on the Indian bourses —LS Industries Ltd, a “textile manufacturer” that hasn’t really made textiles for years but somehow flaunts a ₹3,186 crore market cap at ₹37.5 a share. Suspended in 2013, resurrected in 2024, and now allegedly reincarnating asRobochef AI Tech, this company is more plot-twisty than a Bollywood web series.
With quarterly sales of ₹1.18 crore and a net loss of ₹0.20 crore, LS Industries operates with a mind-bending P/E ratio of 1,660 and an OPM (Operating Profit Margin) of –345%. Yes, negative 345%. Imagine selling a handkerchief and losing enough to buy a new car — that’s their margin profile.
Yet, the promoters still hold 74.3%, debt is negligible at ₹1.15 crore, and the balance sheet screams “rental income and interest” rather than any trace of textile threads. The company plans a Dubai subsidiary and has lent ₹25 crore to a mysteriousSB Infosoft India Pvt Ltd.Meanwhile, SEBI is investigating. What could possibly go wrong?
2. Introduction
Once upon a time, in 1970, LS Industries was born to weave dreams — literally. Cotton, fabric, threads — all the things your grandmother would proudly talk about while showing her saree collection. Fast forward to 2025, and LS Industries is now talking aboutAI chefsandDubai subsidiaries. You can’t make this stuff up.
The company’s stock was suspended for a decade — from 2013 to 2024 — making a comeback that rivals Salman Khan’s post-interval entry. Since then, it’s been a storm of boardroom musical chairs, factory sales, resignations, SEBI orders, and inter-corporate loans.
LS Industries today earns more from renting out buildings and earning bank interest than from making fabric. In FY24, 78% of revenue came from rent, 18% from interest, and the rest from “other non-operating income” — which in corporate language usually means “we found a coin under the sofa.”
So why is this ₹1.46 crore sales company worth ₹3,186 crore? Because Indian smallcaps, dear reader, have entered thepost-reality era.
3. Business Model – WTF Do They Even Do?
Officially, LS Industries is “engaged in manufacturing and trading of textiles.” Unofficially, it’s a diversified chaos buffet. Let’s break this mystery down.
They have old textile infrastructure in Solan, Himachal Pradesh — which, by the company’s own admission, is “deteriorating.” Instead of repairing it, they decided tosell it off. They also make rental income from what’s left of their properties, probably from tenants who still believe fabric manufacturing happens there.
Then comes the plot twist: LSIL announced it would create aforeign subsidiary in Dubaiin November 2024. Because obviously, when your OPM is -345%, the best next move is to go international.
And just when things couldn’t get spicier, in November 2025, they proposed renaming themselvesRobochef AI Tech— suggesting a pivot from textiles to artificial intelligence. You read that right. A fabric company is now flirting with robotics. Someone get this script to Netflix.
To add to the fun, they approved a ₹25 crore inter-corporate loan toSB Infosoft India Pvt Ltd. Why? Nobody knows. But one thing’s for sure — they’ve got the most creative definition of “industrial diversification” we’ve seen all year.
4. Financials Overview
| Metric (₹ Cr.) | Sep Qtr FY26 | Sep Qtr FY25 | Jun Qtr FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1.18 | 0.01 | 0.00 | 11,700% | — |
| EBITDA | -0.72 | -0.54 | -0.73 | -33.3% | 1.4% |
| PAT | -0.20 | -0.50 | -0.23 | 60.0% | 13.0% |
| EPS (₹) | -0.00 | -0.01 | -0.00 | 0% | 0% |
Commentary:When your YoY sales growth is 11,700%, it sounds like you’ve pulled off a miracle — until you realize it’s because last year’s sales were basically zero. Even with a rebound to ₹1.18 crore, the company continues to bleed at the operating level. PAT losses have narrowed, but that’s like celebrating that your house is “less on fire.”
5. Valuation Discussion –
Fair Value Range Only
Let’s crunch this circus mathematically.
- P/E Method:EPS = ₹0.02 (FY25) → At ₹37.5, P/E = 1,875x.Even if we generously apply an industry multiple of 20x (textiles), the fair value would be ₹0.4 per share.
- EV/EBITDA Method:EV = ₹3,185 Cr, EBITDA = -₹26.6 Cr (FY25).Since EBITDA is negative, this ratio becomes an existential question, not a valuation metric.
- DCF Method:When cash flows are consistently negative, DCF becomes DCF –“Dreams, Confusion, Fantasy.”
Fair Value Range:₹0.30 – ₹0.80 (educational estimate)Disclaimer:This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
Here’s where the real masala begins.
- SEBI Saga:LS Industries is currently under SEBI investigation (extended till Nov 15, 2025). The company claims full cooperation, which is usually corporate speak for “We’re trying to survive this.”
- Management Musical Chairs:Between April and November 2025 alone, the company saw resignations of Managing Director, CFO, and Independent Directors. Even the Company Secretary quit. By November, Director Rakesh Sethi passed away, adding tragedy to turbulence.
- Dubai Dreams:On 14 Nov 2024, they revealed plans to start a subsidiary in Dubai. No details yet, but given their current cash position, the only way they’ll get there is with Emirates Skywards miles.
- Robochef AI Tech:In Nov 2025, they proposed renaming the companyRobochef AI Techafter investing ₹7.5 lakh in an AI project. We can only assume they’re training robots to weave cloth or cook biryani — possibly both.
Question to readers: Would you trust a company that lost ₹5 crore in operating profits to now develop “AI chefs”?
7. Balance Sheet
| ₹ Cr. | Mar FY24 | Mar FY25 | Sep FY25 |
|---|---|---|---|
| Total Assets | 94.66 | 40.84 | 41.46 |
| Net Worth (Equity + Reserves) | 61.11 | 40.56 | 40.13 |
| Borrowings | 0.00 | 0.10 | 1.15 |
| Other Liabilities | 33.55 | 0.18 | 0.18 |
| Total Liabilities | 94.66 | 40.84 | 41.46 |
Commentary:
- Assets fell by more than half — either through sale (Solan factory) or creative accounting yoga.
- Borrowings remain tiny, which is
