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1. At a Glance
Nahar Spinning Mills spins cotton into yarn and stitches some of it into hosiery knitwear. In the three months to June 2026 it reported operating profit of ₹127.11 crore on revenue of ₹966.10 crore. Four quarters earlier the same mills produced operating profit of ₹14.8 crore. That is roughly eight and a half times the earlier figure, on the same spindles and the same cotton.
Net profit for the quarter was ₹69.88 crore, against ₹15.96 crore in the three months to June 2025. That is a rise of about 338%. Earnings per share moved from ₹4.42 to ₹19.36, on an unchanged count of 3.61 crore shares. Operating margin was 13%, the highest in the ten quarters on record here. The same measure printed 2.1% in the quarter to December 2025.
The full year to March 2026 produced ₹158 crore of operating profit across twelve months. This single quarter accounts for about 80% of that.
Spinning is a spread business: cotton comes in, yarn goes out, and the gap between the two prices is the trade. When the gap widens, profit moves far faster than sales. When it narrows, the fixed costs sit where they were. Annual depreciation is ₹91.35 crore and annual employee cost ₹320.42 crore. The ten-quarter record here is a fairly pure sample of both states.
Elsewhere in the period, the board proposed reappointing Dinesh Oswal as Managing Director from 1 January 2027. Two independent directors were proposed for reappointment from August 2027. A dividend record date was fixed for 4 September and the annual general meeting set for 25 September 2026. Sales for the year to March 2026 were ₹3,218 crore, against ₹3,285 crore the year before.
2. Introduction
Nahar Spinning Mills was incorporated in 1980 and belongs to the Nahar Group. It makes cotton yarn, blended yarn and hosiery knitwear. The company is described as one of the largest cotton yarn manufacturers and an exporter of knitted garments.
The physical footprint sits in Punjab and Madhya Pradesh. Manufacturing units run at Ludhiana, Jitwal Kalan, Jodhan and Lalru, with further sites at Raisen and Mandideep. Between them they spin, mercerise and dye, knit and make garments. Mercerising is a chemical treatment that makes cotton stronger and easier to dye. Cogeneration plants at Ludhiana and Lalru are rated 3.8 MW and 4.8 MW; cogeneration means drawing electricity and useful heat from the same fuel. Solar stations also run at Jodhan, Lalru and Mandideep. The largest of the three is rated 1.3 MW. The other two are rated 0.81 MW and 0.78 MW. Rooftop solar capacity was recorded at 14,470 KW.
Exports go to Bangladesh, China, Egypt and Vietnam, alongside long-standing relationships with garment retailers in the United States and Canada. Export sales were recorded at 49.2% of the total, against 62.70% in the earliest year on record. Export destinations were recorded at 35 countries.
The capacity story is recent. In the year to March 2024 the company completed an expansion of 31,200 spindles at Lalru. It also added 768 air-jet spindles and a modernisation programme, funded in part by a ₹262 crore term loan from banks and the rest from internal accruals. Installed capacity now stands at 5,73,408 spindles and 1,080 rotors, alongside those air-jet spindles. Cotton consumption was recorded at 800,000 bales a year, double the 400,000 of earlier years. Permanent employees numbered 10,497.
In July 2025 the board approved a further ₹325 crore modernisation of the spinning units, with ₹25 crore of solar capex. The company states the work is aimed at efficiency and exports, for completion by the year to March 2028.
CRISIL, a credit-rating agency, reaffirmed the long-term rating at ‘A’ and the short-term rating at ‘A1’ in August 2025. It revised the outlook to Stable and reaffirmed a ₹23.5 crore commercial paper programme, commercial paper being short-term borrowing sold to lenders rather than drawn from a bank. A CRISIL bulletin of July 2026 lists the bank facility stack. Cash credit lines run to ₹545 crore from Punjab National Bank and ₹280 crore from State Bank of India. IDBI Bank provides a further ₹100 crore. Term loans of ₹265 crore and ₹152 crore are listed. A third runs to ₹7.4 crore, and letters of credit total ₹159 crore. CRISIL rates every one of those facilities at A/Stable or A1.
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3. Business Model: WTF Do They Even Do?
The company turns cotton bales into yarn, and some of that yarn into knitwear that ends up on a shelf in Ohio.
That is the whole of it, and the elegance is in how few decisions it leaves. There is no brand to build, no customer to charm and no app. Cotton arrives at the rate of 800,000 bales a year. It is spun through 5,73,408 spindles and 1,080 rotors. A further 768 air-jet spindles sit alongside them. Some output leaves as yarn. The rest is mercerised, dyed, knitted and stitched into hosiery knitwear. That goes to Bangladesh, China, Egypt and Vietnam, or to retailers in the United States and Canada.
The revenue split shows what kind of company this is. In the year to March 2024, sale of products was around 96% of revenue. Export incentives were around
