Mafatlal Industries Ltd Q1FY26 – From School Uniforms to PPE Kits: 174% Sales Surge, 50% Profit Pop & a 120-Year-Old Textile Dinosaur Trying to Become Digital
1. At a Glance
Mafatlal Industries Ltd (BSE: 500264, CMP: ₹141) is the OG of Indian textiles — the company that once stitched half the school uniforms in India and now wants to stitch your PPE kit, your diapers, and even your government digital classroom hardware. With a market cap of ₹1,016 crore, quarterly sales stand at ₹1,240 crore (+174% YoY), PAT at ₹45.7 crore (+50.5% YoY), and an OPM of 4%. The stock trades at a modest P/E of 8.5 — so cheap that it looks like a factory seconds clearance sale at their Nadiad unit. Debt is just ₹70 crore (0.09x D/E), book value is ₹103, and dividend yield is a decent 1.42%. 6-month returns are +16.4%, but the 1-year return is –19% — a reminder that “old money” brands don’t age like fine wine, they age like leftover textile inventory in Navsari.
2. Introduction
120 years old. Think about that. When Mafatlal Gagalbhai founded this company, the British were still deciding which railway lines to loot cotton from. Fast forward to 2025, and Mafatlal Industries still refuses to die. Instead, it reinvented itself — from textile stalwart to government tender specialist.
Today, the company sells:
School uniforms to your kids,
Diapers and sanitary napkins to your toddlers and aunties,
PPE kits to your doctor,
Furniture and toys to welfare schemes,
And “digital classrooms” to the government.
Basically, if there’s a government department with a budget, Mafatlal has a product catalogue ready.
The irony? 95% of their manufacturing is outsourced. They are basically an aggregator who stitched together branding and distribution while letting third parties do the hard work. Mafatlal is like that cousin who brings biryani from a restaurant to a potluck but still takes credit for cooking.
So here’s the puzzle: is this the rebirth of an old textile Maharaja, or just another case of “license raj hangover meets government tender jugaad”?
3. Business Model – WTF Do They Even Do?
Mafatlal Industries runs like a classic detective mystery — every time you think you’ve figured out their business, another clue drops:
Textiles (75% H1FY25 revenue): Fabrics, uniforms, upholstery, technical textiles for health and hygiene. Brands like “UNICHOICE” and “MEDIMEF” serve everything from Allen Solly to government hospitals.
Consumer Durables (19%): Toys, utensils, furniture — mostly sold through welfare and government programs. (Because apparently, who else buys Mafatlal-branded utensils?)
Digital Infrastructure (6%): E-classroom hardware, ERP software, and even edtech solutions via subsidiary Pieflowtech. Yes, the same company that made your PT uniform now wants to digitize your blackboard.
Distribution split:
54% government,
22% dealers/distributors,
24% direct B2B.
So basically, if GoI cancels orders, half their topline disappears overnight.
Question for readers: Would you trust your kid’s iPad-classroom setup to the same company that stitched your 1990s grey school shorts?
4. Financials Overview
Source table
Metric
Latest Qtr (Q1FY26)
YoY Qtr (Q1FY25)
Prev Qtr (Q4FY25)
YoY %
QoQ %
Revenue (₹ Cr)
1,240
452
450
174%
175%
EBITDA (₹ Cr)
43
25
11
72%
291%
PAT (₹ Cr)
45.7
30
23
50.5%
98.7%
EPS (₹)
6.35
4.23
3.23
50.1%
96.6%
Annualized EPS = 6.35 × 4 = ₹25.4 At CMP ₹141, recalculated P/E = 5.5x (vs reported 8.5x). This stock is
