1. At a Glance – 120-Year-Old Textile Grandpa Goes Asset-Light Ninja
Mafatlal Industries Ltd is that old-school textile uncle who has suddenly discovered outsourcing, government tenders, and digital classrooms. Market cap sits at ₹976 Cr, stock price around ₹135, down 30% in 3 months like it offended someone powerful. TTM sales are a chunky ₹3,437 Cr, yet PAT margin is a microscopic ~2.8%, reminding us that scale without margin is just cardio, not muscle.
Q3 FY26 was… let’s say emotionally unstable. Quarterly sales fell 21% YoY, PAT crashed 77% YoY, and EPS slipped to ₹0.62. But before you throw tomatoes, remember this company lives and dies by government orders, timing mismatches, and execution cycles that behave like Indian trains – late but eventually arriving.
Debt is low (₹60.7 Cr), D/E is a comfy 0.08, promoters hold 69.3%, and dividends exist (yes, actual cash). This is not a momentum stock. This is a tender-driven, working-capital-juggling, asset-light juggernaut pretending to be boring.
Curious why a company with ₹900 Cr order book still looks like it’s running out of breath? Keep reading.
2. Introduction – From Mills to Ministries
Founded over 120 years ago, Mafatlal Industries is part of the Arvind Mafatlal Group, originally built on looms, yarn, and sweat. Fast forward to FY26, and this is no longer just a textile story. It’s a strange cocktail of uniforms, PPE kits, diapers, school furniture, toys, utensils, and digital classrooms.
Yes, you read that right.
The company’s biggest client today is not a fashion brand but state governments. Nearly 54% of revenue comes from government sales, which means revenue visibility is high,
but payment timelines can induce mild anxiety disorders.
The strategic pivot is clear:
👉 Outsource manufacturing (94%)
👉 Win bulk institutional orders
👉 Execute fast, rotate capital, repeat
The problem? Margins. When you’re supplying to governments, pricing power is like democracy – theoretically strong, practically diluted.
Is Mafatlal a turnaround? A value trap? Or a misunderstood execution machine? Let’s dissect.
3. Business Model – WTF Do They Even Do?
Textiles (The OG Business)
Uniforms, workwear, traditional fabrics, and now technical textiles for hygiene (diapers, sanitary napkins, medical non-woven fabric). This segment still matters, but it’s no longer the hero.
Non-Textiles (The Plot Twist)
This is where things get spicy.
- Consumer Durables (64% of H1FY26 revenue)
Kits, toys, utensils, furniture – largely supplied under welfare schemes. Think government tenders, bulk volumes, wafer-thin margins. - Digital Infrastructure (1%)
AI-enabled PAL labs, digital classrooms, hardware + software + AMC contracts. Low base today, but strategically interesting.
Mafatlal is basically saying:
“Why fight Raymond in suits when I can sell desks to governments?”
Smart? Maybe. Sexy? No.
4. Financials Overview – Numbers Don’t Lie, But They Do Smirk
Quarterly Comparison (Q3 FY26 – Dec
