At a Glance
Q1 FY26 was a runway moment for Mafatlal Industries as sales rocketed 174% YoY to ₹1,240 Cr, while net profit nearly doubled to ₹46 Cr. The stock responded with an 18% pop to ₹148. Despite the glamour, margins remain wafer-thin at 4% and the business is still battling legacy inefficiencies. At P/E 9x and Book Value ₹103, this 120-year-old textile veteran is suddenly looking sprightly—but is it sustainable or just a quarterly catwalk?
Introduction
Once written off as a relic from India’s textile past, Mafatlal Industries seems to have rediscovered its mojo. The company, part of the Arvind Mafatlal Group, has endured decades of margin pressure, cheap imports, and changing fashion trends. But Q1 FY26 brought a pleasant surprise—sales surged, profits spiked, and investors are dusting off this old brand from the bargain bin.
Business Model (WTF Do They Even Do?)
Mafatlal manufactures and trades textiles—think uniforms, shirting, suiting, and specialty fabrics—with plants at Nadiad and Navsari. It serves institutional buyers (schools, corporates) and retail customers.
Revenue Mix:
- Institutional & Uniform Fabrics (~40%)
- Consumer Fabrics (~35%)
- Trading & Others (~25%)
Roast? They’ve been doing the same thing for 120 years, but hey, consistency is also a business model!
Financials Overview
Q1 FY26 Highlights
- Revenue: ₹1,240 Cr (+174% YoY)
- EBITDA: ₹43 Cr (margin 4%)
- Net Profit: ₹46 Cr (+50% YoY)
- EPS: ₹6.35
FY25 (TTM)
- Revenue: ₹3,596 Cr
- PAT: ₹113 Cr
- EPS: ₹15.76
P/E: 9x — cheap for
