Mafatlal Industries Ltd Q2FY26 – The 120-Year-Old Textile Dinosaur Just Dropped Its Highest Half-Yearly Revenue Ever (₹2,269.9 Cr) While Wearing a Digital Hat!
1. At a Glance
If you thought an ancient textile company couldn’t pull off a glow-up, think again. Mafatlal Industries Ltd, the 120-year-old textile patriarch of the Arvind Mafatlal Group, just delivered its highest-ever half-yearly revenue — ₹2,269.9 crore in H1FY26, while casually declaring an interim dividend of ₹1.25 per share. Not bad for a company whose foundation predates Indian independence and half your wardrobe.
At ₹177 a share (down 7.8% on 4th Nov 2025), the company sits at a market cap of ₹1,272 crore, a P/E of 11.0, and a Book Value of ₹111. Profit after tax for the latest quarter was ₹21.8 crore, on quarterly sales of ₹1,030 crore, which grew 3.4% QoQ but declined 15.8% in profits — apparently, fashion inflation is real.
The stock has returned 42% in 6 months and 26% in 3 months, which means the investor community finally noticed that Mafatlal didn’t just survive a century — it’s now building digital classrooms while stitching uniforms.
So here we are — a textile company flirting with tech, debt down to ₹60.7 crore, zero pledging, and an enterprise value lower than its market cap. The question is: has Mafatlal become the unexpected multiverse crossover of textiles, ed-tech, and hygiene?
2. Introduction
Let’s set the scene: imagine your grandfather’s favorite uniform fabric supplier suddenly deciding to make digital infrastructure and PPE kits. That’s Mafatlal Industries — a company that has gone from spinning yarns to selling “Diaper Non-Wovens” and “Digital Smart Boards.”
Founded in the early 1900s by the Mafatlal Gagalbhai family, this legacy brand was once synonymous with sturdy school uniforms and old-school discipline. Now, it’s dressing both people and government offices — literally and digitally.
The company’s two major factories at Nadiad and Navsari hum away making fabrics, while its outsourced partners (95% of total manufacturing) make sure Mafatlal stays asset-light and cash-right. It’s like outsourcing your gym routine but still flexing the muscles at reunions.
In the past five years, Mafatlal has quietly transformed from a sleepy textile relic into a diversified conglomerate serving the government with uniforms, furniture, hygiene products, and — wait for it — smart classroom solutions.
If you think “fabric to fiber optics” sounds like an identity crisis, you’re not wrong. But hey, in a world where every startup calls itself a tech company, Mafatlal doing digital infrastructure for schools feels almost… poetic.
3. Business Model – WTF Do They Even Do?
In short: they weave, wipe, and wire.
Textiles (75% of revenue): This is still the heart of Mafatlal — uniforms, fabrics, and technical textiles that end up in schools, hospitals, corporates, and workwear. Think your school uniform, hospital scrubs, or that faded lab coat — chances are, it’s Mafatlal’s handiwork.
Consumer Durables (19% of revenue): This isn’t your LG or Samsung story. This is government-supplied kits, utensils, and furniture for welfare programs. If a district office in Odisha just received school benches and cooking kits — Mafatlal probably delivered them.
Digital Infrastructure (6% of revenue): The newest and most intriguing segment — creating digital classrooms, smart boards, and education hardware through government projects. Essentially, Mafatlal went from supplying uniforms to kids to now supplying their digital whiteboards. Full-circle moment.
And here’s the twist: the company outsources 95% of its manufacturing, focusing instead on branding, supply chain, and contracts. It’s an aggregator-led textile business now — less about weaving fabric and more about weaving networks.
If Shark Tank India had an “Old Money Innovation” round, Mafatlal would walk in wearing a crisp khadi suit and pitch a “digital revolution in traditional fabrics.”
4. Financials Overview
Source table
Metric
Latest Qtr (Sep’25)
Same Qtr LY (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue
₹1,030 Cr
₹996 Cr
₹1,240 Cr
3.4% ↑
–17.0% ↓
EBITDA
₹24 Cr
₹18 Cr
₹43 Cr
33% ↑
–44% ↓
PAT
₹21.8 Cr
₹20 Cr
₹46 Cr
9% ↑
–52% ↓
EPS (₹)
3.03
2.78
6.35
9% ↑
–52% ↓
Annualized EPS = ₹3.03 × 4 = ₹12.12 → P/E ≈ 14.6x on annualized basis, though reported trailing EPS is ₹16.
Commentary: The revenue line is strutting up the ramp, but the profit line tripped on its own shoelaces this quarter. The company blamed cost pressures, but we suspect it’s simply the curse of too many verticals — diapers and digital tablets don’t scale on the same margins.
5. Valuation Discussion – Fair Value Range (Educational)
Let’s keep it straight — we’re not giving you stock advice, but math doesn’t lie.
P/E Method: Current EPS = ₹16.0 Industry P/E = 22.3 Current P/E = 11.0
If Mafatlal re-rates to even 15–18x (just half the premium of peers like KPR Mill and Trident), fair value = ₹16 × 15 to ₹16 × 18 → ₹240–₹288 per
