1. Opening Hook
As global textile diplomacy unravels faster than a cheap polyester thread, Nitin Spinners finds itself weaving hope from tariffs and trade tantrums. The U.S. tariff drama squeezed yarn spreads thinner than a monk’s robe, yet management insists the fabric of resilience is “made in Bhilwara.” Somewhere between falling cotton prices and rising capex bills, they promise a brighter warp ahead.As theBhagavad Gitareminds us —“You have a right to perform your duty, but not to the fruits of your actions.”Dinesh ji seems to have read that part carefully. Stick around — the thread count gets interesting.
2. At a Glance
- Revenue ₹760 Cr (↓8%)– Blame tariffs, not talent.
- EBITDA ₹99.6 Cr (↓10%)– Margins playing hide and seek.
- EBITDA Margin 13.1% (vs 14%)– A minor cut, but the cloth still holds.
- Net Profit ₹34.8 Cr (↓17%)– Profit shrank faster than cotton in monsoon.
- Export Mix 61%– The global hustle continues.
- Utilization 95%+– Machines spun harder than politicians in election season.
3. Management’s Key Commentary
“Cotton prices remain elevated compared to global benchmarks.”(Translation: Indian farmers are smiling; spinners are not.)
“EBITDA margin compressed to 13.1% due to tariff headwinds.”(Translation: Uncle Sam’s tax tantrum hurt the looms.)😏
“We don’t anticipate significant impact from U.S. tariffs due to diversified exports.”(Translation: We don’t sell much to them anyway — small mercies.)
“Expansion of ₹1,100 crore will increase spinning by 25% and fabric capacity by 50%.”(Translation: Because when times are tough, we buy more machines!)
“Renewable energy investment of 18 MW to reduce power cost by 5%.”(Translation: Green fabric, greener P&L — eventually.)
“10 million spindles have stopped in India in last two years.”(Translation: The weak are unraveling, we’re still spinning.)🧵
“We aim for IRR of 15% from new projects.”(Translation: Bhagwan bharose, but Excel says it works.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | YoY Change | Commentary |
|---|---|---|---|---|
| Revenue | ₹760 Cr | ₹822 Cr | -8% | Tariff trouble & deferred orders |
| EBITDA | ₹99.6 Cr | ₹110 Cr | -10% | Margin squeeze |
| EBITDA Margin | 13.1% | 14.0% | -90 bps | Cotton prices refused to chill |
| Net Profit | ₹34.8 Cr | ₹42.2 Cr | -17% | Flat growth, thinner spreads |
| Export Mix | 61% | 63% | -2% | Tariff hit muted due to diversification |
| Debt/Equity | 0.53x | 0.6x | Stable | CFO’s balance-sheet yoga |
| Capex | ₹1,100 Cr | — | — | Growth stitched for FY27-28 |
| Power Cost Savings | ₹10-12 Cr | — | — | Green energy cushions the blow |
➡ Analysts noted: “They’re sweating less over power, but more over prices.”
5. Analyst Questions
Q:When will spinning spreads normalize?A:“3-6 months.”(Or as God wills.)
Q:Smaller spinners shutting down?A:“10 million spindles gone.”(Darwin called — he approves.)
Q:Will import duty relief continue?A:“No extension likely.”(Stock up now or spin regret later.)
Q:Debt rising?A:“We’re still at 0.5x.”(A CFO’s version of inner peace.)
Q:Margin guidance?A:“We never guide.”(Classic desi corporate enlightenment.)
6. Guidance & Outlook
Management expectsrevenue recovery in H2 FY26, aided by lower cotton costs and thetemporary import duty waiver till Dec 2025. Margins are guided to
